STRATEGIC MANAGEMENT ACCOUNTING INFORMATION: MANAGING MICRO AND SMALL FIRMS

Abstract

This paper aims to analyze the use of accounting information for strategic purposes, and how accounting is being used in the management of micro and small enterprises. This research is exploratory, and it is based on a qualitative approach. In addition, a survey was conducted with thirty managers of micro and small businesses located in shopping malls in the city of Salvador between October and December 2010. The results of the study show that accounting information is mostly for taxes and payroll purposes. There is only a limited use of such information to aid in the management and especially in the process of strategic decision making. The use of accounting to guide strategic decisions is a change of mind, both for entrepreneurs and for accountants. We conclude therefore that in these MSEs its entrepreneurs-managers have to develop effective mechanisms for collecting, processing and interpreting accounting data.