those of the large ones. They can timely and easily suit any changes and be more flexible
answering the challenges than the once of more complex organisational structure.
Professional literature offers numerous and interesting advice on improving financial
condition and business performance.19 Quality information is the foundation of all
business decision making processes.
Accounting information system is an important source of substantial information that can
bring about the improvement of a company’s business operations. Basic tasks of
accounting are primarily gathering and processing primarily the financial data as well as
presenting the accounting information to different categories of users. Financial reporting
presents the final step in the accounting information system with the goal to provide
information to all interested users regarding the financial condition, business
performance and cash flows. The needed information can be found in the basic financial
statements. SMEs are obliged to prepare financial statements as well. Some former
research draws attention to the fact that the majority of SMEs prepare their financial
statements primarily to fulfil their statutory obligations, while the managerial aspects
remain insufficient or not-existent. The paper shows the relevance of the principal tools
of analysis, especially ratios, towards the improvement of the quality of business
decision making.