The International Institute for Science, Technology and Education (IISTE)
A large number of SMEs' managers in Tanzania are said to have neglected an important role of preparing and using financial information in decision making. As a result, they have been pursuing poor financial decisions which are regarded to be the main cause for poor performances and increase in failure rates of their undertakings. Specifically, the study analyzed the purpose and practice of preparing financial information, its utilization and, perceived importance in the day-to-day management of SMEs. The study adopted a survey design where SMEs falling under service industry (i.e. tourism, marketing and advertising, transportation, health and insurance) were randomly selected to compose a total sample of 140 enterprises.