Description
Effectiveness of accounting records on the financial performance of small and medium enterprises in Kogi state – case of Yisab Communication Lokoja, Kogi state.
Abstract
This study is on the effectiveness of accounting records on the financial performance of small and medium enterprises in Kogi State using Yisab communication Lokoja, Kogi State. The objectives of the study includes: examining the extent to which small scale business keep accounts of their financial transaction, how accounting records keeping contributes to the efficient performance of small scale business and ascertaining whether accounting records practices have a significant effect on the growth of small and medium enterprises in Kogi State. The study is anchored on decision usefulness and information theories. An expose research design was adopted while data were collected through the use of both primary and secondary sources of data collection. Simple percentage table was used to analyze the data and hypotheses were tested with X2. statistical tool Findings revealed that accounting record helps to avoid businesses failure and it is useful for financial management planning and control, keeping records is crucial for the successful performance of a business and it makes it possible for entrepreneurs to develop accurate and timely financial reports that show the progress and current condition of the business. If proper records are kept they will facilitate efficient, proper timely decision making and enhance performance in small scale industries. In view of the findings, it was recommended that their Small scale business operator units should ensure that complete and accurate business records are kept because they are essential for decision making. This can be ensured by undertaking course training about records keeping, and hiring knowledgeable and skilled workers. There is a need for the owners and managers of the small-scale enterprises to embrace proper accounting records keeping practices in order to be successful in their financial performance.
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