The relevance of keeping proper books of accounts and sound accounting practices has been emphasized in achieving proper financial management in Small and Medium Scale Enterprises. In this study, we investigate the recording of proper books of account by SMEs in Kumasi (Ghana) through information based on responses to a close- ended questionnaire from 90 SMEs in Kumasi.
We report that majority of SMEs’ owners were academic inclined, and also had at least an average level of accounting. This then contributed to the reason why most of these SMEs kept proper books of account.
It is therefore recommended that SMEs operators should obtain basic accounting knowledge to help them keep some records appropriately and where possible engage the services of SMEs accounting Professionals who will help the business keep proper accounting record and prepare the needed financial report at a least cost for the business, financial intermediaries and for other stakeholder usage. Since most of the respondents seem not to support attempts of making it mandatory to maintain proper accounting records and subsequently produce final accounts, we recommend that accounting record in SMEs become mandatory. The government should put measures in place to ensure that proper records keeping are kept by SMEs which will ensure that business declares the accurate income generated. In ensuring this, the necessary legal measures and adequate monitoring must also be put in place to ensure its compliance.
- Citation: Abdul-Rahamon, O. A. & Adejare, A. T. (2014). The Analysis of the impact of Accounting Records Keeping on the Performance of the Small-Scale Enterprises International Journal of Academic Research in Business and Social Sciences 4, 1-17, doi:10.6007/IJARBSS/v4-i1/506 double. Abubakar S. (2011). Assessment of bookkeeping practices and its relevance to SMEs in New Juaben municipality in the eastern region of Ghana. Kwame Nkrumah University of Science and Technology, Kumasi. Institute of distance, Ghana. Adu, F. A. (2013). Working capital management in trading and manufacturing firms in Accra and its effect on liquidity and profitability – A focus on Inventory and trade receivables. Unpublished Master’s Thesis, Ashesi University College, Accra, Ghana. Alhassan, M., & Muazu, I. (2014). Record keeping and the bottom line: Exploring the relationship between record keeping and business performance among small and medium enterprises (SMEs) in the Tamale Metropolis of Ghana. Research Journal of Finance and Accounting, 5(2), 107- 117. Alhassan, M., & Muazu, I. (2014). Record keeping and the bottom line: Exploring the relationship between record keeping and business performance among small and medium enterprises (SMEs) in the Tamale Metropolis of Ghana. Research Journal of Finance and Accounting, 5(2), 107- 117. Alhassan, M., & Muazu, I. (2014). Record keeping and the bottom line: Exploring the relationship between record keeping and business performance among small and medium enterprises (SMEs) in the Tamale Metropolis of Ghana. Research Journal of Finance and Accounting, 5 (2), 107- 117. Amissah, H. (2011). Proper bookkeeping and basic accounting procedures in small scale enterprise. Master’s Thesis, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana. Amoako, K. O. (2012). Trust in exporting relationships: the case of SMEs in Ghana. Unpublished Master’s Thesis, Middlesex University. Amoako, K. O. (2012). Trust in exporting relationships: the case of SMEs in Ghana. Unpublished Master’s Thesis, Middlesex University. Amoako, K. O., Marfo, E. O., Gyabaah, E. N., & Gyamfi, O. (2014). Accounting records keeping practices of SMEs in Ghana: Evidence from Sunyani Municipality. British Journal of Economics, Finance and Management Sciences, 9, 120 – 132. Anheier, H.K. and Seibel, H.D. (1987) small-Scale Industry and Economic Development in Ghana: Business Behavior and Strategies in Informal Sector Economies. Breitenbach, Saarbruchen. Cooper, D. R., & Schindler, P. S. (2014). “Business research methods”. 12th Ed. New York NY: McGraw-Hill. Daniel A. (2010). Micro, Small and Medium Enterprises’ Activities, Income Level and Poverty Reduction in Ghana. University of Cape Coast, Cape Coast, Ghana. Dr. Olufemi A., Dr. Johnson A. O. (2019). The Impact of Record Keeping On the Performance of Selected Small and Medium Enterprises in Lagos Metropolis. Journal of Small Business and Entrepreneurship Development June 2019, Vol. 7, No. 1, pp. 28-40. American Research Institute for Policy Development. Effah, B., Boampong, E., Asibey, O., Pongo, N.A. and Nkrumah, A. (2014) Small and Medium Bamboo and Rattan Enterprises in Economic Empowerment in Kumasi: Perspectives of Procedures. Journal of Social Economics, 1,11- 21. Esaete, M. (2005). Quality of record keeping and performance in small business enterprises. Unpublished Master’s Thesis, Makerere University, Kampala, Uganda. Fuseini, I, O., & Lawrence A. A,, and Belinda B. (2008). Bookkeeping and perception of growth of small and medium scale enterprises in the Cape Coast metropolis. University of Cape Coast, Cape Coast, Ghana. Gupta, V. (2008). Comdex 14-In-1 Computer Course Kit,. 2008 Edition ed. New Delhi: Dreamtech Press Machera, R.P. & Machera, P. C. (2017). Computerised accounting software; A curriculum that enhances an accounting programme. Universal Journal of Educational Research 5(3): 372-385. doi: 10.13189/ujer.2017.050310 McKemmish, S. (2001). Placing records continuum theory and practice. Archival Science, 1(4), 333 – 359. Muchira, B. W. (2012). Record keeping and growth of micro and small enterprises. A case study of Thika Municipality in Kenya. Unpublished MBA thesis, KenyattaUniversity-Kenya. Mugenda, O. M., & Mugenda, A. G. (2003). Research methods. Quantitative and qualitative approaches. Nairobi. Acts Okoli, B. E. (2011). Evaluation of the accounting systems used by small scale enterprises in Nigeria: The case of Enugu-South East Nigeria, Asian Journal of Business Management, 3(4), 235 – 240 Olukotun, A. G., James, S. O., & Ifedolapo, O. (2012). The roles of record keeping the growth and survival of small scale enterprises in Ijumu local Government area of Kogi State. Global Journal of Management and Business Research, 12(13), 54 – 66. Quartey, P., & Abor, J. (2010). Issues in SME development in Ghana and South Africa. International Research Journal of Finance and Economics, 218. Senzu, E.T & Ndebugri, H. (2018.) Examining business performance of micro, small and medium scale enterprise through Accounting records keeping; case study in Ghana. Munich Personal RePEc Archive Retrieved from www.mpra.ub Suraj, A. (2011). Assessment of bookkeeping practices and its relevance to SMEs in New Juaben Municipality in the Eastern Region of Ghana. Unpublished Thesis, Kwame Nkrumah University of Science and Technology, Kumasi, Ghana. Thomas a. (2015). Challenges of paying tax: a case study of small and medium scale enterprises in the Kumasi metropolis. Kwame Nkrumah University of science and technology, Kumasi, Ghana. Tolentino, A. (2000). Guidelines for analysis and programmes for small and medium enterprises development. Enterprise and Management development working paper EMD/13/E. Zhou, L. (2010). The Research on Issues and Countermeasures of Accounting Information of SMEs. International Journal of Business Management, 5(3), 223-225.retrived from www.ccsenet.org
- Creator: Nissi Ato Ewur and Ernest Koduah
- Language: English
- Year: 2020-06-17
Get a copy of the report
I agree to use the research in according to the terms of copyright and Creative Commons Licence. For details of Creative Commons licenses visit - https://creativecommons.org/licenses/