The Role of Financial Accounting in Business Decision-Making & Internationalization

Abstract

Examining how financial accounting influences managerial decision-making is the primary objective of this study. In addition, examining the connection between financial accounting and other business management decisions is necessary. Accounting theory provides theoretical support for this study by examining the link between accounting data and decision-making. According to data from tehrantimes.com, 33,800 small and medium-sized organizations are operating in Iraq in 2021. Collecting responses online can streamline the survey and data-gathering processes, save on survey time and expenses, and ensure that all responder's opinions are heard. A total of 836 people were contacted for this survey and questioned using a well-designed questionnaire. This proves that the company agrees that financial accounting data is helpful for several purposes, including but not limited to analyzing competitors, studying potential alternatives that customers may have with a given product or service, and understanding the factors that impact startups in their early stages of existence. Furthermore, the research demonstrates that financial accounting data is useless for determining the negotiating power of either suppliers or consumers. It also improves the quality of accounting by increasing organizations’ awareness of accounting information and decision-making through the development of an accounting information system.