2016年-世界发展银行全球_A_Survey_of_SME_Accounting_and_Reporting_Practices_in_Austria_32页_2mb

Summary of SME Accounting and Reporting Practices in Austria

Core Content

This report presents a survey of SME accounting and reporting practices in Austria, conducted by the Austrian Institute for SME Research on behalf of the World Bank Centre for Financial Reporting Reform (CFRR) in October and November 2012. It provides insights into the financial reporting and auditing practices of Austrian SMEs, their financing sources, and how these practices impact their access to finance.

The survey included over 780 SMEs, representative of the Austrian SME sector, and used an online questionnaire to collect data. The findings highlight the importance of financial statements for SMEs in financial management, securing credit, and meeting legal obligations, as well as the challenges they face in compliance and the role of external service providers in facilitating this process.

Main Points

1. Accounting Practices in Austrian SMEs

• Accounting Systems:

  • Two-thirds (67%) of Austrian SMEs use double-entry accounting, even though it is not legally required for all.
  • A third of SMEs use cash-basis accounting only.
  • The use of double-entry accounting increases with the size of the enterprise.

• Other Documentation:

  • 62% of SMEs prepare a budget plan.
  • 51% prepare a finance plan and a cash-flow outlook.
  • 43% prepare a corporate strategic plan.
  • Larger SMEs are more likely to prepare such additional documentation.

• Reasons for Preparing Financial Statements:

  • 63% of SMEs use financial statements (very) often for financial control.
  • 47% use them (very) often to secure supplier credit or bank loans.
  • Only 4% use them to attract new equity investment.
  • Larger SMEs are more likely to use financial statements for non-tax purposes.

• Outsourcing Financial Statements:

  • 73% of SMEs outsource all financial statement preparation.
  • 19% prepare in cooperation with an external consultant.
  • 8% prepare in-house.
  • Smaller SMEs are more likely to outsource than larger ones.

• External Service Providers:

  • 90% of SMEs using external service providers are (very) satisfied with the quality of services.
  • 82% are satisfied with the advice received, and 77% with the time-efficiency.
  • 58% find the cost of these services (very) satisfactory.
  • Filing tax returns is the most prominent service besides financial statements.

• Complying with Accounting Requirements:

  • 57% of SMEs find the time required for preparing reports to be very or rather high.
  • 58% find the complexity of accounting requirements to be very or rather high.
  • 56% find the cost of compliance to be very or rather high.
  • SMEs that prepare in-house report lower complexity and cost, but also face more constraints in accessing expertise.

• Sources of Information and Advice:

  • 52% of self-preparers receive information and advice from professional or branch bodies.
  • 46% use specialist software, and 33% get information from official websites.

2. Auditing Financial Statements

• Legal Requirements:

  • Only Kapitalgesellschaft (corporations or LLCs) are legally required to have their financial statements audited.
  • Thresholds for mandatory auditing include turnover over €9.68 million, balance sheet total over €4.84 million, and average number of employees over 50.

• Auditor Engagement:

  • 30% of LLCs engage an auditor for checking accounts.
  • 63% of medium-sized LLCs do so.
  • 69% of LLCs consider the auditor's reputation as the most important factor in selecting an auditor.
  • 60% rely on recommendations from other enterprises.
  • 54% value personal contact.

• Benefits of Auditing:

  • 87% of LLCs that voluntarily commission audits believe it strengthens internal controls.
  • 74% think it enhances the credibility of financial statements.
  • 65% find it useful in dealing with suppliers, financial institutions, or tax authorities.

• Non-Audit Services:

  • Only 14% of LLCs use auditors for non-audit services.
  • 87% use them for tax advice and/or preparation of tax returns.
  • 45% use them for personal tax or estate planning.
  • 42% use them for legal procedures.
  • 39% ask for financing advice.

3. SME Financing

• Investment Requirements:

  • 77% of SMEs had investment requirements in the last three years.
  • 39% had long-term (more than 3 years) investment needs.
  • 39% had medium-term (1 to 3 years) requirements.
  • 38% had short-term (less than 12 months) requirements.
  • Growth-phase SMEs have the highest investment needs (85%).

• Sources of Finance:

  • Bank financing is the most common source, used by 67% of SMEs with investment requirements.
  • 46% use retained profits.
  • 27% use leasing.
  • 7% use supplier credits.
  • 6% use state-subsidized financing.
  • Equity financing, factoring, and mezzanine capital are rarely used (<1%).

• Bank Relationships:

  • 57% of SMEs that used bank financing have accounts with only one bank.
  • 33% work with two banks.
  • 10% have accounts in three or more banks.

4. Financial Reporting and Access to Finance

• Documentation Requirements by Banks:

  • SMEs perceive an increase in documentation requirements when applying for credit.
  • 30% believe requirements became much tougher, and 28% slightly tougher.

• Purpose of Loans:

  • Loans are primarily used for investment purposes, with a secondary role in working capital.
  • The perceived increase in documentation requirements is linked to the need for more detailed financial information.

Key Findings

• Financial Statements are Valued:

  • Financial statements are used for financial control, securing credit, and meeting legal obligations.
  • They are particularly important for SMEs seeking bank financing.

• Challenges in Compliance:

  • Over half of SMEs find accounting requirements complex and time-consuming.
  • Compliance costs are perceived as high by 56% of SMEs.

• Dependence on External Services:

  • Most SMEs outsource financial statement preparation, indicating a reliance on external expertise.
  • SMEs using external services are generally satisfied with the quality, time-efficiency, and cost of these services.

• Auditing Beyond Legal Obligations:

  • Many SMEs, even those not legally required, see value in auditing for credibility and internal control.
  • Auditors are also used for non-audit services such as tax advice and legal procedures.

• Role of Banks in Financing:

  • Banks are the primary source of financing for SMEs.
  • The use of bank financing increases with the term of the investment.
  • Most SMEs that use bank financing have accounts with only one bank.

Conclusion

The report underscores the critical role of financial reporting in Austrian SMEs, particularly in enhancing financial management and facilitating access to finance. It also highlights the challenges SMEs face in compliance and the significant reliance on external service providers for financial reporting. Auditing, while legally mandated for certain entities, is also seen as beneficial for internal controls and credibility. Overall, the findings suggest that the effectiveness of financial reporting in SMEs is influenced by both regulatory frameworks and the availability of professional services.