THE IMPACT OF MANAGEMENT ACCOUNTING PRACTICES ON FINANCIAL PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN THE CAPE COAST METROPOLIS IN THE CENTRAL REGION OF GHANA

ABSTRACT

The study sought to assess the impact of management accounting practices on financial performance of small and medium enterprises (SMEs) in the Cape Coast Metropolis in Ghana. The study adopted a descriptive design with cross sectional survey and is both quantitative and qualitative in nature. The study used SPSS statistical procedure to analyze the data collected through the administration of questionnaires and did content analysis for the interview guide. The qualitative data collected were analyzed using open open-coding session

of what is referred to as a line line-by -line analysis in order to detect prominent

concepts. Simple random sampling and purposive sampling techniques were used to select the participants. The sample for the study consisted of 338 SME owners and 7 bank managers. Triangulation was a technique used to strengthen the robustness of a qualitative and quantitative study. The study found out that management accounting practices enabled the SMEs to produce and sell high quality goods and that promoted increased productivity and profit growth rate and boosted SMEs performance level. The result also indicated that access to credit and buying bulk purchases from cheaper sources enhanced business prospects in profit maximization and smoothened SMEs financial performance. It is concluded that SMEs owners bought high quality products from cheaper sources but had competitive market environment in selling their goods. It is recommended that SMEs should sell goods that have greater demand in the market and engage in competitive advertisement.