A Study on Profit System in Small and Medium Sized Enterprises

Abstract

Profit is the main objective upon which most economic units are based and the criterion on which companies depend on their survival and sustainability in the labor market, and there are many parties that depend on it in drawing up their policy to deal with them in light of the profits they achieve, such as owners, investors, creditors, and all users Internal and external according to the degree of interest of each user in the profits. Despite the importance of that element, there are many factors that affect the achievement of profits and their fluctuation from year to year, which requires identification and study of them, and the adaptation of accounting information systems in a manner that reduces their effects and their implications, for the purpose of assisting top management in making rational decisions on it. The research highlights those factors, and many conclusions and recommendations have been reached.