Managerial Accounting – a Source of Information for an Efficient Management in SME

Coman, Dan Marius; Denisa, Coman Mihaela; Florina, Boca Ileana

doi:10.1016/j.sbspro.2012.09.085

Cited by 10 publications

(5 citation statements)

References 1 publication

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“…In this context, it is necessary for small and micro firms to apply accurate cost calculation methods on a daily basis, to the majority of their business activities. Determining the effectiveness and deviations of an activity can be achieved through administrative accounting, since it is one of the main information sources available to business management (Marius et al, 2012). Cost related information offer strategic advantage regarding decision making and profitability.…”

Section: Discussionmentioning

confidence: 99%

Role and contribution of administrative accounting to small and very small businesses

Karagiorgos¹,

Alexandra²,

Ignatiou³

et al. 2020

J. Account. Taxation

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The aim of this work is to study the main factors that influence the collaboration between the firm and a cost specialist. The paper highlights key aspects of administrative accountings activities performed by Small and medium enterprises (SMEs) and factors that differentiate them due to their nature and small size. Empirical research was conducted through questionnaires to Greek small and micro (very small) firms. Data were processed through a multiple regression analysis, while the results emphasize the importance and utilization of administrative accounting practices and tools. The importance of accounting skills and procedures were found less significant inside a firm but vital for the accounting specialists cooperating with management. Results demonstrate a shift of decision making from owners to accountants and specialists, elevating them as partners responsible for administrative and cost accounting strategies. The application of cost accounting practices combined with knowledge of which skills SMEs owners should hone, allows better collaborations with experts. Finding balance between management and administrative accounting, together with the required accounting background of both parts can significantly reduce communication and cost related miscalculations. The study shows shifts in significance of traditionally important factors of administrative accounting. However, further research is needed to highlight the nature behind each fluctuation. The present study highlights a particular shift from the need of key accounting skills, formerly indicative of SMEs managers, to closer collaboration with administrative accounting experts and their emergence as responsible for cost strategies implementation.

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Section: Discussionmentioning

confidence: 99%

Role and contribution of administrative accounting to small and very small businesses

Karagiorgos¹,

Alexandra²,

Ignatiou³

et al. 2020

J. Account. Taxation

View full text Add to dashboard Cite

show abstract

“…Although SMEs constitute an important segment of all economies, research on CA implementation in SMEs remains substantially limited (Lohr, 2012;Armitage et al, 2016), and only in recent years have a few articles addressed this topic, reducing the research gap (Ulrich & Kratt, 2021;Marius et al, 2012;Lòpez & Hiebl, 2015). Micro-, small-, and medium-sized enterprises constitute the backbone of the Italian as well as the global economy, numerically representing (in both cases) over 90% of companies and employing more than 50% of the work-force (World Bank, 2021;EU Commission, 2020).…”

Section: Cost Accounting Tools Enterprise Resource Planning Systems A...mentioning

confidence: 99%

“…To address CA implementation in SMEs, it is not sufficient to downsize studies on large firms because they have different behaviors and business models (Miller et al, 2021), as the European Commission (2020) has recognized. Unlike large firms, wherein MA and CA are mostly used to reduce agency costs between managers (agents) and owners, SMEs use MA and CA primarily to facilitate business decisions and organizational development, which, if it is to be done properly, requires adequate information (Shields & Shelleman, 2016;Marius et al, 2012). Scholars and practitioners have recognized that the informative usefulness of the effective implementation of CA remains a paradox with little interpretation (Jansen, 2018).…”

Section: Cost Accounting Tools Enterprise Resource Planning Systems A...mentioning

confidence: 99%

Cost accounting practices in SMEs: liability of age and other factors that hinder or burst its implementation in turbulent years

Roffia,

Benavides,

Carrilero

2024

Int Entrep Manag J

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This study aimed to investigate the level of cost accounting (CA) implementation in small- and medium-sized enterprises (SMEs). CA is a management accounting tool whose application in small companies has always been difficult. Nevertheless, academicians and practitioners recommend CA implementation in SMEs, especially because of the deep market instability, competitive pressure, and margin erosion that have occurred following the COVID-19 pandemic and 2022 European war scenario. Company size influences CA implementation; however, it is not the only influencing factor and perhaps not even the most important. To investigate the barriers to the adoption of CA and which conditions or actions can remove these barriers, leveraging from the contingency theory, a questionnaire was sent out in July 2022 to limited liability SMEs operating in the manufacturing, construction, and distribution macro-sectors in Verona and Vicenza provinces (Italy). Respondents answered a set of questions regarding CA implementation in their SMEs as of July 2022. Using a multivariate regression model to analyze data from the 120 questionnaires received, we found that lack of resources, limited training and skills, firm age, and the presence of the founder in the firm had a negative influence on CA implementation in SMEs. The low level of CA implementation was also associated with its supposed inefficiency, uselessness, and unsuitability for business. The effect of company size on CA implementation was not statistically significant. Despite this study’s limitations regarding the sample and period considered, we believe that it contributes to both academic debates and practice by illustrating the limiting factors and ways in which CA implementation can be fostered in SMEs in turbulent years.

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“…Analysis of recent publications shows that some authors research the institutional approach to the development of economy and Accounting: Burns and Scapens (2000), Dacin, Goodstein and Scott (2002), Campbell and Klaes (2005), Haidai (2006), Robalo (2014). Others authors are exploring study the question about the role accounting information has in economy, for example, papers: by Brandas, Megan and Didraga (2015), Marius, Denisa and Florina (2012), Trigo, Belfo and Estebanez (2016), Chapman and Kihn (2009), Papazov and Mihaylova (2015); some authors see a close relationship between the information which Accounting provides and requirements as to its institutions and individual users, for instance Navarro-Garcіa and Madrid-Guijarro (2016); Banociova and Pavlikova (2014). However, none of them defines the special role of Accounting which combines in itself institutional and informational capacities, takes a pivotal position in economy and can ensure transparency of its data.…”

Section: Theoretical Framework and Their Implementation In Practicementioning

confidence: 99%

The Unique Opportunities of Accounting to Promote Transparency of Economic Processes

Slyozko

Kurilo

Mazina

2019

CJFA

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The article is devoted an important role the Institute of Accounting in the modern economy. This role is supported by unique institutional and informational opportunities determined by its specific characteristics. On the one hand, accounting is the legislative and normative institution through which the controlling and regulating institutions influence the economic processes occurring at each enterprise. On the other hand, the accounting system creates an information database on the actual economic activity of each enterprise required by users. Such a database is formed due to the fact that accounting is an exclusive registrar of business activities: documentation, inventory, assessment, calculation, accounts, double-entry bookkeeping, balance, reporting. These methods have such a mathematical feature that has made it possible to fully them with the latest information technologies. All of these factors allow accounting to provide transparent accounting information to any users and institutions.

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Managerial Accounting – a Source of Information for an Efficient Management in SME

Cited by 10 publications

References 1 publication

Role and contribution of administrative accounting to small and very small businesses

Role and contribution of administrative accounting to small and very small businesses

Cost accounting practices in SMEs: liability of age and other factors that hinder or burst its implementation in turbulent years

The Unique Opportunities of Accounting to Promote Transparency of Economic Processes

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