AN INVESTIGATION ON RECOGNISING AND OVERCOMING THE OBSTACLES THAT PREVENT ENTREPRENEURS FROM UTILISING MANAGEMENT ACCOUNTING INFORMATION

Abstract

Regarding wise decisions, efficient resource allocation, and ensuring the long-term viability of a company, management accounting provides rather helpful data. Many firms still find it challenging to implement even if it presents a lot of possible benefits. The main goal in doing this study was to identify the challenges faced by company owners trying to fully use management accounting. People have low degrees of financial literacy and find it challenging to grasp management accounting, its significance and benefits included. Misunderstandings make people find management accounting difficult to grasp. Financial worries might be the reason for entrepreneurs' fear to use specialists or implement accounting practices. Small enterprises in particular should bear this especially true. Many business owners delay the use of formal accounting systems out of worry that they would exhaust their resources since the daily operations of their companies have natural importance. Though these techniques should be used more often, there are times when companies place more importance on fulfilling immediate operational needs than on applying management accounting techniques such budgeting, financial forecasting, and cost analysis. To be effective in overcoming these obstacles, the researcher must inform individuals, streamline accounting processes, and show them how particular habits will save costs over time. Eliminating these challenges will allow company owners to improve the performance of their company as well as their capacity for visibility of performance and decision-making ability. This study aims to close knowledge gaps in management accounting and its uses, therefore enabling company owners to apply this knowledge to support the long-term survival of their companies.