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This research is on The effect of financial accounting reporting on the management of a business. Effort is made to access the effect of formal accounting reporting on the management of a business. Financial accounting covers those activities related to the preparation of certain reports which are known as financial statements. These statements report the financial status of a firm at a particular time. the firm’s activities and resulting profit/losses during the most recent period and the flow of resources occurring within the firm during the same period. I draw my research from the work of many authors. Such work has done have included textbooks in all forms, magazines and encyclopedias. Apart from extensive use of literature, other methods of research include (a) interviews with businessmen (b) questionnaires have been designed and distributed to some businessmen (especially at trade fair). The questionnaires have been designed for officers in management cadre in public and private companies, shareholders, staff, partners and owners in a sole proprietorship. In the analysis of the data collected, the chi-square was used to analyze the responses gathered. The study revealed that a lot of problems were inherent in financial reporting ranging from non-disclosure of vital information and most times non-compliance to relevant statutes or principles that are essential in preparing financial statements. There were recommendations given such as management should be aimed at profit optimization in order to keep the business going. And management should ensure disclosure of vital information in the financial statement.


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