Impact of Culture on Financial Management in Africa

Abstract

One of the major challenges of the accounting profession in Africa is the impact of culture on accounting systems. People from different societies view accounting as an imposed idea from another continent. They also find it culturally imposing and punitive and in most cases the demands of accounting go contrary to the cultural norms in a given society. Perhaps it is the way people perceive and react to the word accounting or the ‘idea of accounting'. It is important to note that every society has its norms and standards of language use in communication. These norms and standards play a significant role in the way messages are coded (worded) by the sender, the way they are transmitted (relaying of the message) and the way the receiver of the message decodes (understands and reacts to the message). Journal of Language, Technology and Entrepreneurship in Africa Vol. 1 (1) 2007 pp. 84-96