The Use of Management Accounting Tools in Third Sector Entities

Abstract

The purpose of this article was to present the results of research about the use of management accounting tools by third sector entities. It was considered that the use of management tools assists in the management process and internal controls of the same, and consequently in its continuity. The literature discusses the importance of management accounting and its instruments for management purposes (Padoveze, 2004; Soutes, 2006; Pace, 2009) and presents relevant aspects of more traditional tools such as the Budget, Strategic Planning and Costing (Dubois, Kulpa and Souza, 2006; Martins, 2010; Padoveze, 2006). We tried to do a survey on a sample of NGOs in cities of Minas Gerais, which included at the end with 41 respondents institutions. The survey instrument for data collection was a questionnaire constructed from literature reviews related to objects of research (Third Sector and Management Accounting Instruments). The questionnaire had the purpose of gathering data from the entity and also know about of the respondent. In addition, interviews were conducted in some NGOs, complementing the research findings from the questionnaires. The results were divided into three topics: the respondent data, the organization and practices of management accounting. In general, although much progress has been made and success stories and effective improvements, most of these entities still need to develop their accounting information systems and the use of the instruments themselves. Causes of this may be the lack of knowledge about some of the entities management tools (maybe the respondents because of their formations), besides the reduced capacity of most of them have these "services" (controls and analyzes) that run on its functional structure due lack of resources to do so.

Keywords

• Third Sector
• Management Accounting
• Management Tools