MANAGEMENT ACCOUNTING SYSTEMS (MAS): A CONCEPTUAL FRAMEWORK TO ENHANCE SME’s PERFORMANCE

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Small and medium-sized enterprises (SMEs) play a vital role in the global economy by creating jobs and fostering economic expansion. SMEs, however, frequently have difficulties in optimizing their operations, especially in the areas of management accounting, financial management and decision-making. The adoption and use of Management Accounting Systems (MAS) in SMEs is still lacking, despite their critical role in providing relevant data for decision-making. This conceptual paper offers an approach for developing and carrying out successful MAS that is especially appropriate for SMEs. Using theoretical ideas and prior research, the paper outlines the fundamental components of MAS with an emphasis on SMEs, including cost accounting, budgeting, performance evaluation, and strategic planning. It is stressed that SMEs have unique characteristics that necessitate a flexible and adaptable approach to MAS deployment. These characteristics include resources constraints, limited expertise, and unpredictable environments. Furthermore, the paper explores the potential benefits of implementing modern technologies in order to improve the usability and accessibility of MAS for SMEs. By utilizing these technologies, SMEs can enhance data accuracy, enable real-time decision-making, and can overcome traditional barriers of MAS adoption. In conclusion, this conceptual paper adds to the body of literature by providing a thorough framework for creating and executing MAS that are specific to the requirements and limitations of SMEs. The proposed framework seeks to promote sustainable growth, innovation, and competitiveness in the SME sector by strengthening the financial management capacities of SMEs.