Management Accounting Systems in SMEs : A Means to Adapt to the Financial Crisis?

In the present study we examine the impact of the recent financial crisis in the management accounting systems of Small and Medium-sized Enterprises (SMEs) in Greece. More specifically, we assess whether and to what extent Greek SMEs adjusted their management accounting systems as a reaction to the intense pressures deriving from the extensive financial crisis. For this purpose, we explore the application of budgeting and costing systems as well as of various management accounting practices and techniques during two periods: at 2009, the year of the financial crisis outbreak, and at 2013, a period in which Greek economy is deeply in the financial vortex. The study is informed by the answers of 161 SMEs falling into the manufacturing, retail and service-providing sectors on a structured questionnaire. Results indicate that the various facets of the financial crisis resulted to SMEs adjusting their management accounting systems. Therefore an increase in the number of SMEs starting to apply budgeting and costing systems within the examined period is evident. Additionally, the use of budgeting and costing for various managerial purposes, as well as the use of several modern management accounting and performance measurement techniques has been intensified, albeit in a moderate magnitude. Therefore, despite the crisis most of the SMEs have not resorted into more sophisticated management accounting methods