THE ISSUE OF MANAGEMENT ACCOUNTING IN SMALL AND MEDIUM-SIZED ENTERPRISES

The role of management accounting in improving the efficiency of business entities management has been described in literature repeatedly. The positive side associated with its use has long been known and the creation of new tools of management accounting only strengthens it. However, so far the management accounting has been used primarily in large enterprises. Numerous examples showing possibilities of its practical application, its advantages and benefits of using it are cases based on experience gained in large business entities. Does it mean that management accounting cannot be applied in small and medium-sized enterprises? The article takes the issue of application of management accounting in small and medium-sized enterprises. The assumptions of management accounting in relation to the specific needs of small and medium-sized enterprises will be discussed. The experience in terms of the applicability of accounting in small and medium-sized enterprises will be analysed. The review of the issues being faced by the managers in small and medium-sized enterprises concerning the application of management accounting tools will be conducted. Challenges for people professionally engaged in management accounting will be intimated. This article is debatable. It is a review of the literature. It complies the result of work concerning the application of management accounting in small and medium enterprises coming form various research centres and other centres professionally dealing with accounting. It also refers to the issue of supporting managers in small and medium-sized enterprises in application of management accounting tools. Its aim is to seek answers to the question whether the outsourcing of accounting in small and medium enterprises creates the possibility to popularize the management accounting. This article is also a reason to consider undertaking further works, the effect of which should be growing knowledge about management accounting among managers/owners of small and medium-sized enterprises as well as the development of abilities of the practical application of management accounting tools in small and medium enterprises. Such work will thus contribute to the improvement of effectiveness of the enterprises’ operation. This is especially important in the economy of the European Union. According to data contained in the ANNUAL REPORT ON EUROPEAN SMEs 2012/2013 in 2012 small and medium-sized enterprises were the place of employment of about 86,8 million of people and the development of over 57% share in gross value added generated by the private, non-financial economy in Europe.