engleski

Utilization of Accounting Information for Decision Making in Croatian SME: Preliminary Findings

Utilization of accounting information for decision making in SME might be limited since this kind of enterprises might have smaller scale of operations and limited workforce for sophisticated financial analyses. However, in order to smoothly operate and survive, SME must generate and use some type of accounting information in managerial decision making. In order to measure the extent of production and usage of historical and future oriented accounting information, two indices are developed and evaluated on the sample of SMEs from Split-Dalmatia County in Croatia. Pilot research findings revealed that both indices (Historical Accounting Information Index – HAI Index & Budgeting Accounting Information Index - BAI Index) are positively related with certain SME characteristics (size, age and decision to organize accounting within the SME). Also, correlation analysis has shown that HAI-Index and BAI-Index are highly positively correlated. Such a finding indicates that SME involved in more comprehensive utilization of historical accounting information are also more involved in comprehensive production and usage of future oriented accounting information. However, since conducted research is only pilot research, previously presented findings are not representative for the entire sector of Croatian SME and therefore should not be generalized.

accounting; decision making; SME

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