Management Accounting Information: A Panacea or Myth for Improving Performance of SMEs in the Tourism Sector

Abstract

The current business environment has changed faster than before and companies that succeed depend on availability of timely quality information. The study evaluated management accounting information as an aid to strategic decisions that sought to improve performance of Zimbabwean SMEs in the Tourism sector. The descriptive survey method was adopted in which a sample of 135 SMEs were selected using stratified random sampling from the ZTA database with 404 Tourism SMEs in Harare. Data were collected through use of questionnaires and follow-up interviews. The results indicated that there is an association between management accounting information and performance of SMEs. The study further revealed that management accounting practice is neglected in most SMEs.   It is further recommended that SMEs should have clear management accounting policies in place. Also, high-quality management accounting information should always be available for use in decision-making. The study further suggests that cost benefit analysis should frequently be carried out to establish the type of management accounting systems to employ in the enterprise.