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November 28, 2023

What are SBOMs and how are they used 

  • February 14, 2023
  • 3 min read
What are SBOMs and how are they used 

The purpose of writing this paper is to explain the impact of SBOMs on the communication aspects of accountants relationship with small businesses. We are going to show that small business executives prefer direct forms of contact with their accountants and the richness of verbal communications. When the idiosyncratic nature of small business is considered in combination with the sector’s size and economic importance it highlights the importance of this separate field of enquiry. Moreover, a notable component of effectual communication is establishing and utilising the group’s preferred method of communicating. It has been observed that in a relationship between business advisors and SBOMs the owners are likely to be amendable to external advisors such as accountants to develop a relationship between parties using a similarly informal communication. It has been observed though studies that empathy is a significant factor in SBOMs advisor selection process. As a result, there is a need for SBOMs to discern that the advisors has experienced the circumstances that have caused them to seek advice.

 Nonetheless, the small business management literature identifies three broad objective sets: growth-oriented economic goals, primarily personal non-economic objectives and an emerging cohort of SBOMs who target achieving a balance between business and personal objectives. Small business managers typically adhere to an idiosyncratic culture. A dominant aspect of this culture is striving to achieve personal non-economic objectives for example achieving independence and a flexible life through self employment. Undoubtedly, many managers aspire to achieve goals other than profit maximisation. Information asymmetry exists between accountants and the majority of SBOMs. SBOMs tend to disregard managing the accounting function of their business. Media richness theory was considered suitable to facilitate understanding of the communications issues being researched. 

Subsequent studies have contended that audio-visual communications possess high media richness. Media richness theory contends that verbal media are inherently richer media, with a superior capability to transmit the potentially unclear and confusing messages present in the accounting and tax information, which accountants communicate to small business. Moreover, Practitioners attempt to adopt communications approaches which satisfy the communications needs and preferences of SBOMs. The interviewees believed that SBOMs’ objectives have a significant influence on the communications approach they adopt with small business managers and detected that an increasing number of owner-managers wish to achieve a balance between business and personal goals. Also, communicating with SBOMs about non-financial matters took accountants beyond the relative security of their accounting and tax knowledge bases. When we can demonstrate a tie between the two and you can help facilitate making their personal lives easier by improving the business, their interest perks up. 


Small business managers prefer to communicate verbally with their accountant. Compliance and advice on tax issues are the major reasons for communications between the parties. The purpose of this paper was to explore the potential impact of SBOMs’ communications preferences and objectives on the communications aspect of accountants’ advisory relationship with small business. Through exploring these issues, the paper contributed to understanding of accounting’s capacity to satisfy the communication needs of its users.