AN INQUIRY INTO IDENTIFYING AND SURMOUNTING THE BARRIERS THAT HINDER ENTREPRENEURS FROM UTILISING MANAGEMENT ACCOUNTING INFORMATION

Abstract

Management accounting data helps one make wise choices, allocate resources effectively, and guarantee long-term success of a business. Numerous companies find it difficult to apply even if it offers numerous possible advantages. Finding what is preventing company owners from fully using management accounting is the main objective of this research. Results of misconceptions include poor financial literacy, a lack of knowledge of the complexity of the subject, and the relevance and benefits of management accounting. Furthermore, especially in small businesses, financial concerns may cause entrepreneurs to be reluctant to engage experts or use accounting procedures. Many businesses owners delay implementing formal accounting systems out of concern about running out of resources given the vital nature of their daily operations. Though these are all management accounting tools that should be used more often, companies sometimes ignore budgeting, financial forecasting, and cost analysis in the quest of addressing urgent operational needs. We must educate individuals, streamline accounting procedures, and demonstrate to them how certain behaviours would save money over time if we are to transcend these challenges. By reducing these obstacles, entrepreneurs may raise their company’s performance, decision-making ability, and visibility of business performance. This study closes gaps in our knowledge of management accounting and its uses, therefore enabling entrepreneurs to utilise this information to drive the long-term success of their businesses.