engleski

Accounting Information in Decision Making: Evidence from Micro Companies

Decision making is an essential part of every managerial activity. Managers need relevant information to lean on in order to achieve success and growth of the company. Accounting information should form an important share in managerial decision making even in micro companies where managers have different educational backgrounds. This paper sheds light on the use of accounting information in the decision making process. The aim of the paper is to analyse and understand the importance and usefulness of accounting information for managers in micro companies who are striving to run successful businesses. Empirical research was conducted using online survey as a research instrument. The collected data were analysed and four hypotheses tested by means of univariate statistics. Research results showed that managers in micro companies (regardless of their field and level of education) acknowledged the importance of accounting information in decision making because they were aware of the impact of accounting policies implementation on financial position and result. Furthermore, awareness of their responsibility for financial statements makes managers appreciate the usefulness of accounting information. Using accounting information relevant for decision making processes makes managers more eager to learn more about accounting and, subsequently, making companies more profitable.

Accounting, Decision making, Management, Micro companies

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