Recommendation

 

10.Recommendation

 

As a graduate trainee at the GAJMA & Co firm, I'd want to provide my recommendations to SMEs on the role accounting should play in guiding decision-making to satisfy stakeholders. SMEs continue to play a significant role in the business world.

First and foremost, the firm should focus on hiring qualified accountants because they are the ones who play a crucial part in accounting. Accountants need to have strong competences and abilities; thus, the business should offer the right training and activities so they may gain experience and avoid mistakes. Next, the accountants' financial statement must be correct. In order to thrive, SME owners and managers must update accounting information with accurate book accounts, which makes it easier to generate financial statements, maintain adequate records, and attract the attention of lenders. Financial statements give stakeholders the income statement, balance sheet, and cash flows of the entire business information they need to make decisions about the firm, such as whether to continue investing in it or not. Accounting systems are in charge of analyzing the financial health of businesses, creating the paperwork required for tax purposes, and providing data to other organizational activities. Consequently, the accounting system is crucial for SMEs.Without it, SMEs would find it challenging to operate and tough to locate clients and suppliers.

Therefore, it's crucial for SMEs to uphold accounting ethics when preparing financial statements in order to avoid fraud, false information, bankruptcy, etc. Because users want to be sure that financial statements have been prepared in accordance with GAAP and reported in them is accurate, financial accountants adhere to a uniform set of rules known as generally accepted accounting principles (GAAP) and international financial reporting standard (IFRS). This allows users to compare the financial statements issued by one company to those issued by another company in the same industry. in order for SMEs to operate according to accepted accounting rules. Next, rather than manually entering data, I advise SMEs to adapt to new technological approaches. An error-prone manual system will take longer. Utilizing particular technological tools makes it simple, more accurate, time-saving, and efficient to record information. This increases stakeholder satisfaction, which can influence their decision-making, and also makes them more productive.