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The Use of Accounting for Financial Management by Small and Medium Enterprises in Poland

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  • Anna Surma-Syta
  • Adrian Majek

Abstract

Purpose: The aim of the publication is to verify the use of information obtained from accounting in business and financial management by small and medium enterprises (SMEs) in Poland. As part of this objective, the main hypothesis was formulated that small and medium-sized enterprises (SMEs) largely rely on accounting information to manage their assets and finances. Additionally, auxiliary hypotheses were put forward. Design/Methodology/Approach: The literature review was carried out. The research tool was a questionnaire addressed to a representative group of 150 randomly selected Polish small and medium-sized enterprises (SMEs). The questionnaire survey was conducted in January and February 2021. The questionnaire contained 21 single-choice and multiple-choice record and substantive questions using the Likert scale. Findings: The results of research show that 90% of the surveyed entities use data for financial management. 75% of companies use them to improve the debt collection process. Over 60% use this information when choosing the optimal sources of financing, incl. subsidies from the European Union. Approximately 70% of entities use accounting information to calculate the ROE, and more than 80% use it when analyzing and undertaking investment activities. Practical Implications: Owners of businesses are aware that thanks to accounting information they are able to make better decisions and manage their resources in a more optimal way, use them more effectively for their own purposes and improve the processes taking place in a given unit. Originality/Value: The processes and situations in which accounting data in the field of financial management are most often used are described. This publication provides an answer to what extent the theories from scientific literature find practical application in real reality in the field of property and financial management. The conducted research can be the basis for further analyzes of the importance of these data for companies in specific situations.

Suggested Citation

  • Anna Surma-Syta & Adrian Majek, 2021. "The Use of Accounting for Financial Management by Small and Medium Enterprises in Poland," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 1), pages 741-750.
    • Handle: RePEc:ers:journl:v:xxiv:y:2021:i:special1-part2:p:741-750
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    References listed on IDEAS

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    1. Bushman, Robert M. & Smith, Abbie J., 2001. "Financial accounting information and corporate governance," Journal of Accounting and Economics, Elsevier, vol. 32(1-3), pages 237-333, December.
    2. Andra M. ACHIM & Anca O. CHIŞ, 2014. "Financial Accounting Quality And Its Defining Characteristics," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 5, pages 93-98, November.
    3. Boghean Florin, 2014. "Development Of Decision Making By Managers With Financial And Accounting Information," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 837-844, July.
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    Keywords

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    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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