Role of Accounting Firm in Management Accounting for SMEs in Lower Northern Region

Main Article Content

Kanogporn Suranatthakul

Abstract

Small and Medium-sized Enterprises (SMEs) play an important role in the economic status of Thailand. Good accounting information is essential to the success of SMEs. Ideally, SMEs should prepare and analyze their own accounting information. However, the majority of SMEs outsources accounting firms to prepare financial statements and taxation. Hence, the SMEs themselves have limited accounting information for making decision in order to improve the management of their businesses. The objective of this work is to study the possibility of accounting firms to act as accounting consultants for SMEs, rather than relying primarily on outside firms. A descriptive study was performed in 50 accounting firms in the lower northern. Structured questionnaires and in-depth qualitative interviews with accounting firm owners show that most accounting firms are ready to act as consultants to ensure preparation financial statement and contribution the existing knowledge of management accounting practices in SMEs. Therefore, accounting firms can serve as financial and management accounting instead of preparation financial statement that serve as financial accounting only. However, accounting firms that ready to act as consultants in order to emphasis on management accounting, employees of accounting firms need to develop knowledge and skills. To act as consultants and provide effective support to SMEs to improve their business performance, accounting firms can also provide value added services not merely delivering financial statement.

Article Details

How to Cite
Suranatthakul, K. (2018). Role of Accounting Firm in Management Accounting for SMEs in Lower Northern Region. WMS Journal of Management, 7(2), 1–7. Retrieved from https://so06.tci-thaijo.org/index.php/wms/article/view/125720
Section
Research Articles-Academic Articles
Author Biography

Kanogporn Suranatthakul

Faculty of Business, Economics and Communications, Naresuan University, Phitsanulok 65000

References

Agbejule, A. (2011). Organization culture and performance; the role of management accounting system. Journal of Applied Accounting Research, 12(1), 74–89.

Ahmad, K. (2014). The Adoption of Management Accounting Practices in Malaysian Small and Medium-Sized Enterprises. Asian Social Science, 10(2), 236–249.

Amoako Gi. K. (2013). Accounting Practices of SMEs: A Case Study of Kumasi Metropolis in Ghana. International Journal of Business and Management, 8(24), 73–83.

Anthony J.B., Robert, S. and Jitsuo, G. (2006). The effect of business advisers on the performance of SMEs. Journal of small business and enterprise development, 13(1), 33-47.

Banai, M and Tulimieri, P. (2013). Knowledge, skills and personality of the effective business consultant. Journal of Management Development, 32(8), 886 – 900.

Banham, H. and He, Y. (2014). Exploring The Relationship Between Accounting Professionals And Small And Medium Enterprises (SMEs). Journal of Business & Economics Research, 12(3), 209–214.

Everaert, P., Sarens, G. and Rommel, J. (2007). Sourcing strategy of Belgian SMEs: empirical evidence for the accounting services. Production Planning & Control, 18(8), 716–725.

Fleischman, G., Walker, K. and Johnson, E. (2010). A field study of user versus provider perceptions of management accounting system services. International Journal of Accounting and Information Management, 18(3), 252-285.

Gooderham, P. N., Tobiassen, A. Doving, E. and Nordhaug, O. (2004). Accountants as Sources of Business Advice for Small Firms. International Small Business Journal, 22(1), 5–20.

Husin, M. and Ibrahim, M. (2014). The Role of Accounting Services and Impact on Small Medium Enterprises (SMEs) Performance in Manufacturing Sector from East Coast Region of Malaysia: A Conceptual Paper. Procedia - Social and Behavioral Sciences, 115, 54–67.

Jayabalan, J., Dorasamy, M., Raman, M. and Ching, N. K. C. (2009). Outsourcing of Accounting Functions amongst SME Companies in Malaysia: An Exploratory Study. Accountancy Business and the Public Interest, 8(2), 96-114.

Jindrichovska, I. (2013). Financial Management in SMEs. European Research Studies, 16, 79-95.

Maseko, N. and Manyani, O. (2011). Accounting practices of SMEs in Zimbabwe: An investigative study of record keeping for performance measurement (A case study of Bindura). Journal of Accounting and Taxation, 3(8), 171-181.

Mbogo, M. (2011). Influence of Managerial Accounting Skills on SME’s on the Success and Growth of Small and Medium Enterprises in Kenya. Journal of Language, Technology & Entrepreneurship in Africa, 3(1), 109–132.

Nandan, R. (2010). Management Accounting Needs of SMEs and the Role of Professional Accountants: A Renewed Research Agenda. JAMAR, 8(1), 65–77.

OSMEP. (2011). SMEs Master Plan 2012 – 2016, The Office of SMEs Promotion, Thailand.

Samujh, R.H. and Devi, S.S. (2008). Professional accountants enabling SMEs reach their potential. Paper presented at the International Colloquium on Asian Business, Bangkok, Thailand, 30 June–3 July, 1-25.

Smirat, B. (2013). The Use of Accounting Information by Small and Medium Enterprises in South District of Jordan, (An empirical study). Research Journal of Finance and Accounting, 4(6), 169-175.

Walker, K., Fleischman, G. and Johnson, E. (2011). Perceptions of Management Accounting services. Global Journal of Business Research, 5(1), 111–123.