I know the heartbeat of this business and I know the cash flow of the business

I know the heartbeat of this business and i know the

This preview shows page 116 - 118 out of 241 pages.

“I know the heartbeat of this business, and I know the cash flow of the business every day. Because I do the accounts myself, I do not need to ask my employees about it and I keep the accounting system as simple as possible. I am a “hands” on person and I look for the expenses and I always make sure that I have enough to cover my expenses for at least 6 months ahead of time.” (A2) “I use the MYOB and it is very easy to use. Every time when I have to do the tax returns, I will read the tax guides for information. I have to be careful as when I collect $90, I must set aside $10 as this does not belonged to me. If not, I will spend it and will have cash flow problem.” (A9). The Asians in this sample conducted the business on their own, while their spouses were employed elsewhere. They considered it imprudent for both spouses to rely solely on their business incomes, which reflect their higher uncertainty avoidance values. Unlike their European counterparts, whose spouses provided record keeping assistance, Asian families contributed financial and business assistance as observed by participant BE9: “I see the Indian community very much work within their group, their own family, their own extended family and that is certainly a cultural thing. They seldom use banks, the family is the bank . . . That is also prevalent in other cultures, like the Chinese is similar but not as much as the Indian culture, but they certainly work in a similar way.” (BE9) Their ability to access family finances reflects the collectivistic Asian traits (Bjerke, 2000; Morris et al., 1994). Avoiding delays in tax payments not only prevented tax penalties but also prevented the likelihood of business failures. This adds to the tax literature that accessing family’s financial resources by collectivistic groups can improve one’s ability to meet tax payments on time, thereby reducing tax penalties and avoiding business failures. 6.4.3 Accounting systems and the record keeping function - Maori group There were more Maori in this research, compared to other groups, using computerised accounting packages despite showing lack of proficiency and interest in record keeping,
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103 as mentioned in section 6.2.1.4. Consequently, they relied extensively on paid assistance, and their willingness to pay outsiders for their assistance to get the task done is a reflection of their short term orientation. They considered it more effective to relinquish the record keeping tasks to others (the experts), which reflects their high power distance values towards people with expertise: “Actually in small businesses, like in my area, I have to multitask and the area that I am less skilled in is tax, the administration side and cash flow management. I can’t be bothered learning all the requirements and I hate doing them. I rather give it to someone else who knows what they are talking about and sort that out for me.” (M2) “My personality is that I will get on and do things. I can do things on the run and I can think of doing different things. Because I have a
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  • Fall '16
  • tax compliance, SME Operators

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