Published Online:April 2026
Product Name:The IUP Journal of Accounting Research & Audit Practices
Product Type:Article
Product Code:IJARAP050226
DOI:10.71329/IUPJARAP/2026.25.2.129-151
Author Name:Bijoy Gupta, Niloy Bhattacherjee and Rahul Kumar Ghosh
Availability:YES
Subject/Domain:Finance
Download Format:PDF
Pages:129-151
The paper examines the impact of management accounting practices (MAP) on the financial health of SMEs, and determines the moderating role of information technology (IT) adoption in the relationship. The study used survey approach, and the primary data was collected from 318 small and medium-sized enterprises (SMEs) in West Bengal, and analyzed using SmartPLS. The data was quantitative and cross-sectional, established by a well-structured questionnaire. It was analyzed by well-known statistical tools such as descriptive analysis and partial least square structural equation model (PLSSEM). Finally, the measurement model was applied to test the validity and reliability of the model. The study found that the use of MAP has a positive impact on the FP iof SMEs. The findings will be of help to accounting professionals to understand the effect of MAP on the financial health of SMEs; and the SMEs will be able to grasp the usefulness of IT and MAP in improving their financial health.
Small and medium-sized enterprises (SMEs) are the backbone of many economies. SMEs make up about 95% of all companies across the globe and provide 60-70% of all jobs (Panca et al., 2020). The size or number of Micro, Small and Medium-Sized Enterprises (MSMEs ) in India is the largest in the world after China (https://www.india-briefing.com/news/micro-smallmedium- enterprises-india-explainer-17887.html/ ). In India, SMEs have earned their importance due to their significant contribution to the gross domestic product (GDP) of the nation (around $1 tn), and they account for 20-25% of the total employment in India (https://www.ibef.org/ industry/msme). SMEs empower the generally neglected entrepreneurs, such as women and the marginalized and generate revenue at the grassroots.