The need for information is basic for concrete and explicit management decision making to ensure the success and survival of an organization and since the aim of business organization is to be successful in their investment projects, finacing decisions and marketing decisions, financial information is an indispensable tool to achieve these goals. The overall objective of this study was to find out the effects of financial accounting reporting on managerial decision making. The specific objectives include: To determine usefulness of financial accounting reporting in strategic investment decisions on SME‟s at Kaambo District. Usefulness of financial accounting reporting in financing decisions on SME‟s at Kaambo District and The need of financial accounting reporting in marketing decisions on SME‟s at Kaambo District. A case study design was a research design used. In carrying out the work, various types of data collection methods were adopted, such as interview and observation. These methods were adopted for gathering the primary and secondary data. The statistical instrument used was the tabulation model. Tables, figures and judgemental techniques were used to analyse and present findings. From findings, a good financial information results in successful investment decisions, financing decisions and marketing decisons and it is recommended that SME‟s should increase the use of accounting information in strategic investment decisions, financing and marketing decisions.