Pathology of Accounting Systems and Financial Reporting of Small Business

Achieving the management in every economic unit needs having reliable and in time information. Proving to be true requires establishing a suitable accounting system for collecting, processing and reporting the effects and results of activities and exchanging them around the environment of the economic establishment activation. The initial consideration indicates that a great part of some small economic establishments Haven¡¯t hat suitable accounting systems to providing timely and reliable information for achieving the responsibility of responding and helping the management decision making process. Base on these the first and main gold of current study is to pathology the accounting systems and financial reporting in small companies. Statistical sample of these studies has been chosen among small but active companies in economical environment in sistan and bluchestan and during the financial periods from 2007 to 2009. The study findings shows that some factors like employees experience in financial parts, the space between business needs of the accounting employees and collegiate training in relevant fields, suitable systems of compensation for the employees service in financial parts and the management awareness of financial subject in business units , is directly relation with the efficiency of accounting systems and financial reporting . and some factors like scientific competency and legal and contractual necessities in attracting the employees in financial units and taxation controls on the company¡¯s financial activation doesn¡¯t have any significant relation whit efficient of accounting systems and financial reporting.