Managerial accounting is important for small businesses in several ways. The planning and decision-making support are considered a critical aspect of managerial accounting (Dearman, Lechner, & Shanklin, 2018). In the article titled, Demand for Management Accounting Information in Small Businesses: Judgment Performance in Business Planning, the authors and professors gathered survey data that helped them evaluate the influence managerial accounting has on startups of small businesses and the financial information the entrepreneurs requested. There were 162 surveys that the professors looked at and 109 of them had business plans prepared before starting their companies (Dearman et al, 2018). Based on the information provided, a regression analysis was performed. The analysis showed that managerial accounting has a positive correlation with a beneficial influence that was made by a leader. The preparation had a positive outcome with a higher investment amount. Even though this article pertains more to the planning aspect of decision-making, both aspects are interwoven. Throughout the article, the correlation of managerial accounting leading to successful decision making is prevalent. There were limits to this study most notably the geography restriction to the survey. It was only conducted at the Arkansas Small Business and Technology Development Center which is only in Arkansas. The survey was given to 1,000 people but only 162 responded. For every 3 men that responded only 2 women responded based on the responses. At the end of the article, the authors also added ways to improve potential studies in the future Dearman et al., 2018).

The article was well written and helped me understand how managerial accounting influences small businesses and large businesses alike. Managerial accounting tends to come first and then the financial accounting comes second. Putting managerial aspects first, financial aspectscome easier for a small business that is better prepared. The theory that the authors present with is highly agreeable. Managerial accounting has a positive correlation in shaping the strategic planning of a business to make effective business decisions. The article shows the improvements to this topic as well as a bias to expand the market research. I learned that I could take managerial accounting and apply it to my decision making at work even if I do not make the final decisions as they might only be recommendations. For me, whether it is examining claim amounts, enrollments, and premiums for clients or personal budgeting, managerial accounting is a vital component in aiding the growth of strong decision making.

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