Service quality and the services sourced from small accounting practitioners

Abstract

Small and Medium Enterprises (SMEs) often lack the necessary financial skills to safeguard business success. It is therefore expected that they would benefit from the advisory services offered by external accountants. Research, however, indicates a reluctance amongst Small Business Owners (SBOs) to source advice from accountants. It has been suggested that factors relating to service quality may contribute to this reluctance. This paper aims to report on how the levels of service quality offered by Small Accounting Practitioners (SAPs) impact the frequency with which SMEs source different services. Data were collected from 422 South African SBOs using self-administered questionnaires. Hypotheses were tested through Structural Equation Modelling (SEM). An exploratory factor analysis was performed on the adapted Service Quality Model (SERVQUAL) scale, and two dimensions for measuring service quality in this context were found: technical and functional aspects. Results from the structural equation modelling indicate that SAPs’ level of service quality has no significant impact on the frequency with which SMEs source traditional accounting services. However, a significant positive relationship was found between both service quality dimensions identified and the rate at which SMEs source advisory services. The findings suggest that SAPs could establish a relationship of trust with their existing clients by providing high-quality services. Quality service, in turn, would result in clients sourcing advisory services more frequently, benefiting both the SME and the accounting practitioner.

Keywords:

• accounting services
• advisory services
• professional service quality
• SERVQUAL
• small accounting practitioners
• small business accounting
• small business finance
• SMEs

Disclosure statement

No potential conflict of interest was reported by the author. This article is derived from the following Doctoral dissertation:

Oosthuizen, A. (2018). Predicting the benefits that small business owners obtain from their accounting practitioners (Doctoral dissertation, University of Pretoria). South Africa Link: https://repository.up.ac.za/handle/2263/67864

The research proposal and questionnaires were submitted, and the University of Pretoria's, Faculty of Economics and Management Sciences Research Ethics Committee awarded an ethical clearance certificate to conduct the study.