THE ROLE OF ACCOUNTING IN SMALL AND MEDIUM-SIZED ENTERPRISES (SMES)

Abstract

Development of Small and Medium Enterprises (SMEs) is the main factor in any modern economy. SMEs stimulate private ownership and
entrepreneurial skills. They are flexible and can adapt quickly to the change of supply and demand to the market. They provide
employment, promote the diversification of economic activities, support sustainable growth and contribute significantly to the export and
trade. Development of small and medium enterprises is a complex challenge that involves a number of directly interested parties in all
government sectors, the economy first and foremost.The importance of SMEs to the economy is undeniable. All the studies showed that,
globally, more than 90% of all business is being conducted in small and medium enterprises. Small and medium enterprises employ two
thirds of the total labor force of the European Union.Small and medium-sized enterprises in Europe are the engine of European economy
and a key driver for achieving sustainable growth and job creation. Throughout Europe there are around 23 million of SMEs, which
represents about 99% of all enterprises that employ about 75 million of people.The enterprise, as an organized set of people, is the basic
economic entity that achieves specific goals and tasks in the system of social reproduction. Socio-economic system is an environment in
which the enterprise aims to combine their results. In order to ensure the survival of the enterprise, its future and secure proper integration
into the business environment to the market, it is necessary to manage the business and development of the enterprise. To be able to
manage the enterprise as well as to develop it, besides personal abilities and intuition of managers, adequate information support is
necessary.