Exploring the links between IT tools, management accounting practices and SME performance: perceptions of CFOs in Ireland

Notwithstanding its sectoral importance to wealth creation and employment, research on the role of management accounting in small and medium-sized enterprises (SMEs) is limited. This paper aims to firstly examine the perceptions of Chief Financial Officers (CFOs) on the impact of information technology (IT) tools on management accounting practices (costing, budgeting, and performance management). Secondly, it examines how CFOs perceive these management accounting practices affecting their SME’s performance. The study is based on a survey of CFOs in Irish SMEs. We propose a conceptual model of these relationships. We use partial least squares (PLS) to analyse the data from the 109 participating CFOs. The results show a significant positive relation between IT tools and all three management accounting practices, along with significant partial support for how CFOs perceive management accounting practices impacting their SME’s performance.