MANAGEMENT ACCOUNTING PRACTICES IN SMALL AND MEDIUM ENTERPRISES (SMES): A COMPARATIVE ANALYSIS

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Authors

Onuoha, Perpetua Ijeoma (Ph.D.) ¹; Agala, Innocent Emmanuel ²

¹ Faculty of Management Sciences

Alex – Ekwueme Federal University Ndufu -Alike, Nigeria.

² Department of Accountancy

Ebonyi State University Abakaliki, Nigeria.

¹ [email protected], 07033548086                                        ² [email protected], 08108914300

   Abstract 

Research Objective: Small and Medium enterprises (SMEs) are major contributors to economic growth, employment, and innovation. The adoption of MAPs is still low or poor in many SMEs due to which many fail. This research is based on research that explores the degree of MAPs adoption by the SMEs across different industries and geographies, both in terms of traditional practices like budgeting and the cost control and modern tools like the Balanced Scorecards, the Activity-Based Costing as well as sustainability oriented models.

Methodology: In this study, a qualitative method is used by using the secondary data in peer-reviewed journals, case studies, and institutional reports that are published between 2010 and 2024.. 

Findings: Accessing the extent of adoption of management accounting practices among SMEs across different sectors and regions. to analyse the key technological, institutional, and organisational factors influencing the adoption of management accounting practices in SMEs and evaluate the impact of management accounting practices on the performance and sustainability of SMEs.

Conclusion: management accounting procedures play a fundamental role in the sustainability, competitiveness and growth of SMEs. It advises the policy makers to strategically guide them, offer more digital infrastructures, and train them in accounting to enhance the accounting capacities among SMEs. It further demands that the SMEs incorporate sustainability in their accounting systems to keep in line with the demands in the global market. 

Recommendation: The owners of SMEs ought to raise their financial skills and competency, whereas state institutions need to develop policies which encourage the use of techno-financial based accounting systems within the SME landscape. 

Keywords: Management Accounting Practices, Small and Medium Enterprises, Digitalisation, Comparative Analysis, Sustainability, Performance.

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