An Analysis of the Use of Accounting Information by Portuguese SMEs

Abstract

Despite the significant economic contribution of small and medium-sized enterprises (SMEs), little is known about the extent to which they make use of accounting information (AI). Although AI is considered one of the main sources of information for SMEs, many continue to ignore its potential, considering that this information is only intended to meet tax obligations. The literature stresses the influence of several factors on AI usage. However, the conclusions of the studies are fragmented, contradictory, and not very enlightening. Following these studies, the purpose of this paper is to explore which characteristics of decision makers, companies, and accounting services influence the importance and use of AI in SMEs. Data were collected through an online questionnaire survey applied to Portuguese SMEs. The findings show that the decision makers’ level of education, as well as their educational background, influence the importance they attribute to AI. It has also been found that smaller companies and SMEs that use outsourced accounting services make the least use of AI. Therefore, in addition to providing empirical evidence on the importance and use of AI, a debate that has been mainly theoretical, and on the importance of SMEs in any economy, this paper aims to raise awareness of the need to further study the decision-making process in such firms.