Problems and Limitations on the Use of the Financial Statements for Business management of SMEs’ Entrepreneurs in Ubonratchathani Ubonratchathani

Abstract

The objective of this research was to study problems and limitations on financial statement usage in the management of small and medium enterprises (SMEs). Questionnaire data are collected from 100 entrepreneurs in Amphoe Muang, Ubon Ratchathani province.  In addition, constructed and unconstructed in-depth interviews have been undertaken with 10 of them. The research finds that most of the enterprises have problems and limitations of using financial statements relating to: (1) Financial information inaccuracy caused by the lacks of correct and appropriate accounting system and required modern information technology and related personnel for gathering and analyzing data.  (2) The delay in financial reports due to insufficient accounting staffs.  (3) Insufficient knowledge for interpreting financial statements for most of the entrepreneurs and also insufficient experiences of the accounting staffs.  Therefore, the entrepreneurs are not able to utilize information from the financial statements to the full extent.  Testing the relationship between the types of business and the above problems and limitations, we find that every type of business faces information technology problems relating to both equipment and personnel for efficient use of information technology equipment.  In order to reduce the problems or limitations on financial statements usage, the entrepreneurs should focus on improving accounting information system with respect to both the investment in modern information technology equipment and the development of personnel for efficient use of information technology equipment.