Accounting Strategic Management in Small and Medium Enterprises (SMEs)

Abstract

          Most businesses in Thailand are the Small and Medium Enterprises (SMEs) which run as the family business. There are the ordinary corporate and persons. The major problems of the SMEs are business loan, production, marketing, management, information system, accounting and financial problems. To solve these problems, the executive has to understand the business and the accounting's data which can be used to plan, make the decision and control operation to reach the goals.

          The executives' responsibility, is to know about the proper accounting system and how to use it to run their business. The accounting strategic management for the SMEs consists of:

          1)  focusing on the accounting by choosing the system which is related to the business operation,

          2) a budgeting systematic accounting,

          3) selecting the proper and related to the accounting method,

          4) analyzing the relationship between cost of sales and profits,

          5) pursuing and implementing the accounting information system for a reasonable period of time, and

          6) applying the management information system for the accounting.

          In addition, tax incentives can be useful for the SMEs to save and pay tax correctly. The Revenue Code defines tax benefits related to the SMEs such as a reduction in the personal income tax, the corporate income tax rates, the exemption from corporate income tax, the double declining method in depreciation, etc. So the executives should have the management accounting knowledge. They can analyze the data and understand the impact on the financial statements due to the use of different accounting methods. They can gain the business advantage and run the business as well.