IMPACT OF ACCOUNTING RECORDS ON THE GROWTH OF SMALL AND MEDIUM SCALE ENTERPRISES

Abstract

This study was embarked on to investigate how accounting record keeping  has assisted Small and Medium Enterprises (SMEs) in growth with specific objectives on how proper accounting records has assisted SMEs on cost control and improvement in their financial decisions. The study employs the survey method in evaluating the impact of proper accounting records as a catalyst for small and medium enterprise (SMEs) growth in Nigeria. The population of this study is based on SMEs owners and practicing accountants operating in Edo State. Edo State was chosen forth is study since it has a large concentration of SMEs. Primary sources of data was employed and questionnaire was designed using linkert scale format. The population of the study is 1988 out of which sample size 333 was derived using Taro Yemane formula. 333 questionnaire was distributed out of which 300 returned their questions. Data collected was analyzed using both descriptive and inferential statistics while hypothesis of the study was tested using pearson chi-square distribution. The findings confirmed a significant contribution of accounting records keeping in assisting SMEs in areas of cost control, improved financial decisions and improvement of their profitability. The study recommended among others that, SMEs should embrace proper accounting record keeping by employing qualified accountants in their business. Government should through relevant agencies train SMEs on financial literacy that will make them to embrace proper account record keeping.