Financial Research Journal

Financial Research Journal

Designing and Implementation of Accounting Model for Startups in the Financial Business Ecosystem

Document Type : Research Paper

Authors
Touraj Bahrami 1
Saeed Jabbarzadeh Kangarluei 2
Ali Ashtab 3
Masoud Ahmadi Mansourabad 4
1 Ph.D. Candidate, Department of Accounting, Urmia Branch, Islamic Azad University, Urmia, Iran.
2 Associate Prof., Department of Accounting, Urmia Branch, Islamic Azad University, Urmia, Iran.
3 Assistant Prof., Department of Accounting, Faculty of Economics and Management, Urmia University, Urmia, Iran.
4 Assistant Prof., Department of Accounting, Mamaghan Branch, Islamic Azad University, Mamaghan, Iran.
10.22059/frj.2025.389944.1007707
Abstract
Objective
The present study aims to design and validate an accounting model tailored for startups within the financial business ecosystem. Given the rapid growth of startups and the financial and managerial challenges they face, the need for a comprehensive accounting model that addresses their specific requirements is critical. This research examines the key factors influencing startup accounting, their impact on financial and technological strategies, and the outcomes of this process. As startups operate in a dynamic and innovative environment, the necessity for a flexible, technology-driven, and adaptive accounting system is increasingly evident. The development and validation of such a model can enhance both the financial and non-financial performance of startups while strengthening the overall financial business ecosystem.
Methods
This study is applied and developmental in nature and adopts a descriptive cross-sectional survey design for data collection. To accomplish the research objectives, an exploratory mixed-methods approach was employed. The study participants comprised two groups of experts: theoretical experts (university professors specializing in accounting with expertise in startups) and practical experts (financial managers and professionals directly engaged with startups or familiar with their financial and accounting challenges). In the qualitative phase, theoretical sampling was conducted, and after reaching theoretical saturation, 12 experts were selected. Data from this phase were analyzed using Grounded Theory with the MAXQDA software. In the quantitative phase, the perspectives of financial business managers and specialists were examined, and the sample size was determined using power analysis, resulting in 140 individuals. The quantitative data were collected through cluster-random sampling and analyzed using Partial Least Squares (PLS) with Smart PLS software.

Results
The research findings indicate that causal conditions, including technical factors, managerial factors, governmental factors, and accountant-related factors, directly influence the core phenomenon, which is startup accounting. Furthermore, the core phenomenon is shaped by contextual conditions, such as the financial business ecosystem’s infrastructure and financial resources, as well as intervening conditions, such as regulatory frameworks governing the financial business ecosystem. These factors indirectly influence the strategies and actions adopted by startups, including technological strategies, such as the adoption of modern accounting technologies and intelligent financial systems, and financial strategies, such as optimizing financial resource management and budgeting processes. In turn, these strategies and actions directly affect organizational outcomes, including financial performance (e.g., increased investment attractiveness, reduced costs, and improved cash flow management) and non-financial performance (e.g., enhanced financial transparency, strengthened risk management, and greater investor confidence).

Conclusion
The study demonstrates that designing and implementing a comprehensive and flexible accounting model for startups can significantly improve their financial and strategic performance. Startups face challenges such as income instability, complex financial regulations, and the need for rapid, data-driven decision-making. Consequently, a modern and technology-driven accounting system can facilitate optimal resource management, financial transparency, and competitiveness. Additionally, the findings underscore the importance of clear financial regulations and robust infrastructure to support startup growth. The adoption of emerging technologies, particularly AI and machine learning, can further aid startups in forecasting financial trends, optimizing expenses, and enhancing the efficiency of accounting systems.
Keywords
Startup accounting
Financial business ecosystem
Accounting model
Partial Least Squares (PLS).
Subjects
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Financial Research Journal
Volume 28, Issue 3
2026
Pages 810-835