AN INVESTIGATION INTO LOCATING AND OVERCOMING THE OBSTACLES THAT PREVENT ENTREPRENEURS FROM MAKING USE OF MANAGEMENT ACCOUNTING INFORMATION
Keywords:
Management Accounting Data, Financial Literacy, Entrepreneurs, Decision-Making Ability, Business PerformanceAbstract
Management accounting data helps one make wise choices, distribute resources effectively, and guarantee long-term profitability of a business. Many companies have great difficulty implementing it even if it is very beneficial. The main objective of this research is to identify the factors preventing company owners from using management accounting as it deserves. Common misconceptions about the intricacy of the material, limited financial literacy, and general ignorance of the value and benefits of management accounting are those of miscommunication. Moreover, especially in small businesses, financial concerns can prevent entrepreneurs from using accounting systems or hiring professionals. Many business owners put off establishing official accounting systems for concern of running out of time or money as everyday operations of the company are of great significance. Although these are all management accounting tools that businesses should use more, budgeting, financial forecasting, and cost analysis are typically neglected in favour of satisfying their current operational needs. We must particularly educate individuals, streamline accounting tools, and explain them how these behaviours will save money over time if we are to overcome these obstacles. By reducing these challenges, entrepreneurs may raise their business outcomes, decision-making abilities, and visibility of firm performance. This study helps us find areas where knowledge and practice are lacking and provides answers to enable entrepreneurs to more extensively use management accounting information and support sustainable firm growth.