Organization of Accounting for Expenses and Income in Small Businesses
Abstract
Small businesses play a pivotal role in Uzbekistan’s economy by fostering employment, expanding entrepreneurial activities, and enhancing local income generation. As such, the financial sustainability of these enterprises heavily relies on transparent and accurate accounting practices. This paper examines the organization of accounting for expenses and income in small businesses, with a focus on the service sector in the Namangan region. Using comparative, economic-statistical, and document analysis methods, the study explores how proper classification of expenses, income recognition, and real-time reporting can improve decision-making and fiscal discipline. Findings reveal that over 2020–2024, the service sector in Namangan demonstrated substantial growth—total service volume increased almost fivefold—driven by expansion in accommodation, education, trade, and transport services. The application of national (BHMS) and international (IFRS for SMEs) standards remains inconsistent, underscoring the need for harmonization and capacity building. Regional disparities in service income and expense composition also reflect challenges in cost control and tax reporting. The study proposes modernizing accounting practices through automation, segmented reporting by service type, and enhanced audit controls. These measures can strengthen the investment climate, improve tax transparency, and support broader economic development objectives. Ultimately, this work contributes to a better understanding of how accounting reforms can boost the operational efficiency of small enterprises in emerging economies
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