Certain Aspects of the Management Accounting System for Small and Medium-Sized Enterprises

Abstract

The importance of sustaining small and medium-sized enterprises (SMEs) around the world is increasing rapidly each year. In modern days many countries try to develop methods to preserve this type of companies given recent global crisis. SMEs in the Ukrainian economy account for 99.98% of the total business population. Relevance of this study consists in the significant role of the SMEs in the structure of national economy and their importance in development of the modern domestic economic systems. Objectives of the study are to determine prospects, shortcomings and features of establishing management accounting practices (MAPs) in SMEs. The problem of the study consists in fragmentation of the knowledge in the literature relating to management accounting practices in small and medium sized enterprises and problems of establishing them, due to restriction of resources and particularly wide gap between management accounting theory and practice compared to larger companies. Trends in the small and medium-sized enterprises in the structure of the national economy and their role in the development of the domestic economic system can be predicted on the basis of several reviewed cases. This confirms the relevance of the analysis of the management accounting system of economic entities in order to determine financial reserves to ensure economic activity in a crisis. Automated parametric control systems have been developed and proposed for implementation as elements of management accounting in order to provide processes for planning, monitoring and controlling of operational processes, as well as provide information and analytical support for management decision-making as a result of this study.

Analytical Study of Financial Accounting and Management Trends Based on the Internet Era

“…Real-time and timeliness are the most significant advantages of Internet technology, so for financial accounting management work, it is also necessary to improve the speed of information transmission to help users get accurate information [ 9 ]. Financial and accounting management pays more attention to the timeliness of information, and the existence of Internet technology helps meet this need effectively [ 10 ]. The use of Internet technology enables financial management to be more timely and changes the method of communication, increasing communication and exchange between personnel [ 11 ].…”

The use of financial information in the business management of SMEs in Colombia

“…All these growth prospects require investment, and this is where financial management acquires a relevant role, starting with the diagnosis and review of the financial statements and identifying the results of the fiscal year (Ganga-Contreras et al, 2015), in order to decide how to allocate profits towards the constitution of reserves and the investment of the expansion, renovation or growth objectives that have been set (Diegtiar et al, 2021). However, at this point, demotivation may arise when finding that the available resources may not be enough to cover the projected investments, it is then the time to make room for multiple sources of financing, both those offered by the financial sector, as well as those originated by the expansion in the portfolio of suppliers, new placements of the partners or incorporation of new investors, among other options.…”

Does Digital Balanced Scorecards Lead To The Sustainable Performance Amongst The Jordanian SMEs?

“…MAS provides financial information to managers that can help them make informed decisions, this information include budgets, forecasts, and financial reports, which can help managers determine whether to invest in new equipment, hire new employees, or pursue new business opportunities (Diegtiar et al, 2021). MAS also can help SMEs control their costs by tracking expenses and identifying areas where cost reductions can be made.…”

“…This has led to a decline in the effectiveness of management accounting systems towards improving sustainable performance through the capital forecasting and decision-making process (Diegtiar et al, 2021). Thus, it is necessary to support these systems by adopting digital tools such as the balanced scorecard to address the deficit in providing information.…”