Abstract:
Small and medium scale enterprises contribute over 22% of the employment opportunities and 15.5% of GDP in Ghana. Despite their significance, recent studies show that 60 % of the SMEs fail within the first few months of operation. .The general objective of this study was to explore the reasons why small and medium scale enterprises (SME’s) are not keeping adequate accounting records in the kumasi municipality. The study employed a cross-sectional survey research design to get more details from the respondents so that the results from the sample can be inferred to the larger population. Purposive, cluster and simple random sampling techniques were used in the study. Structured questionnaire was self- administered to collect quantitative data from primary sources.
The study shows that most of the traders do not record adequate accounting records in their businesses. The analyzed data were presented using statistical tables and graphs. The research findings can provide knowledge to owners of SMEs to use in maintaining proper bookkeeping so as to improve their performance and help generate employment in the Ghanaian economy. The research work can also be used by academicians, researchers and management consultants as a source of knowledge and reference.
Finally recommendations have also been made as to how they should go about in preparing and keeping adequate accounting records.
Description:
Every business need to keep proper books of accounts so as to ascertain at all times how the business is progressing. This will help the owner or the businessman to assess the returns of his/her investment employed. The success of a business to a large extent depends on how well it effectively and efficiently manages its resources and for that matter accounting records.
Internal Revenue Service as well as VAT will have no difficulty of assessing the tax for the business. Financial institutions and other investors can easily know the strength of the business and take a decision on how much to invest at a particular period.
