This study investigates the perspective of the owner–manager of a small or medium‐sized enterprise (SME) on the importance of mutual understanding with an external accountant. Mutual understanding means that the owner–manager understands what the accountant is saying and feels understood by the accountant. The results, based on 310 completed surveys of Belgian owner–managers, show that owner–managers who have a high level of mutual understanding use the advice of their external accountant more extensively. This is in turn positively linked to the financial health of an SME. Furthermore, several drivers that enable the establishment of a high level of mutual understanding are explored. Owner–managers with a high level of mutual understanding consider their accountant as a strategic partner, experience a high level of proactive behaviour with them, have a higher frequency of formal contact, and perceive informal contact as important. External accountants should consider these opportunities in their client management and training of internal staff. Education of clients and openness also seem very important, as the level of a client's accounting knowledge, the number of accounting topics owner–managers deal with, and transparency towards the accountant are significantly positively related to mutual understanding.
The objective of this study was to gain more insight into the value of business planning for starters and to better understand the role of the external accountant in the planning stage. In particular, survey research was conducted to capture both the quality of the business plan and its effectiveness as perceived by the starter. To unravel the underlying reasons behind the development of a business plan, the framework of the self-determination theory (SDT) was used and adapted to this context. SDT proposes a continuum that distinguishes four types of motivation, ranging from external motivation (i.e., developing a business plan because of a legal obligation) to intrinsic motivation (i.e., developing a business plan because of a personal interest). The results, based on 283 surveys of Belgian starters, showed a relationship between the type of motivation and the quality of the business plan. Entrepreneurs with high introjected or high identified motivation seem to develop a high-quality business plan. This high-quality business plan enables entrepreneurs to increase their effectiveness. Furthermore, entrepreneurs who consulted an accountant during the business planning stage perceived the quality of their business plan as higher than entrepreneurs who did not get advice from an accountant. These findings presuppose an important challenge for external accountants, as their business advice supports entrepreneurs in anticipating “the unexpected”, which subsequently empowers them to monitor their business effectively.
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