The Distinctions of the Automated Accounting Information System for Sole Proprietors Trading on Online Marketplaces

Abstract

The growth of e-commerce, and, in particular, the soaring sales on marketplaces, cause digital transformation of all related business processes. Small businesses are increasingly using the services of online marketplaces. The prevalence of sole proprietors matching the conditions of microbusiness in the structure of sellers in recent years suggests a trend towards the development of a specific stratum of small business in online commerce. This study is aimed at identifying the distinctive features of the automated accounting information system for sole proprietors that trade on online marketplaces. This survey conducted among sole proprietors reveals that even if there is no formal requirement for submitting accounting reports to regulatory institutions, sole proprietors do need to use book-keeping and management accounting indicators in order to control their activities. The analysis of the ERP systems used in e-commerce has shown that they do not fully meet the needs of sole proprietors as they neither consider their intuitive desire to analyze business processes, nor have a holistic integration into the Internet. The logic of the systems is focused exclusively on the needs of legal entities for book-keeping and tax accounting. The survey and analysis of the systems are helpful in identifying the distinctions of the automated accounting information systems for sole proprietors trading on online marketplaces and propose the points for automation of business processes. The results of the study can be used for putting forward general recommendations on accounting systems for sole proprietors operating in various fields, as well as improving the existing ERP systems. Further research is needed to clarify the structure of the integrated accounting system for sole proprietors, as well as to evaluate its effectiveness in case it is integrated into an ERP system.