An analysis of management accounting practices (maps) of small to medium enterprises

Abstract

The purpose of the study was to analyse Zimbabwe's small- to medium-sized businesses' Management Accounting Practices. The topic was chosen because, despite the growing body of research on SMEs, there doesn't appear to be a dearth of studies that have examined the MAPs of SMEs in Zimbabwe. The literature review demonstrated how the various MAPs that SMEs can implement can be understood through the lens of contingency theory. To fully address the problem at hand the researcher used a pragmatism research philosophy which allowed the researcher to evaluate people’s belief and find the truth in a practical manner aiding a better understanding of MAPs of SMEs. The researcher used an abductive research approach which can be used to generate hypothesis or explanation that guide in decision making, even in the face of uncertainty or incomplete information. The research sample was made of 60 SMEs in Mutare CBD. Simple random sampling and purposive sampling were used to select the respondents. The data collected was sorted and presented on bar graphs, pie chart and tables. From the findings it was concluded that most SMEs in Mutare CBD were not using MAPs. Further the researcher came to the conclusion that costing, budgetary control, performance measurement and decision control are of paramount importance in improving the performance of SMEs. From the findings it was recommended that SMEs owners and employees should further their education in the area of cost and management accounting through training. And also, SMEs owners and managers should create organisational structure that is compatible with the adoption and application of MAPs.