RECORD OF TRANSACTIONS (BOOKKEEPING PRACTICES) AMONG SMALL AND MEDIUM SCALE ENTERPRISES.

Abstract

The main challenge for small and medium enterprises among others is to keep proper books of account on their financial activities. Most small and medium enterprises fail to keep accurate and complete records on their business financial activities. Some also regard records keeping as not part of their practices, but prefer to work on more pressing issues such as marketing their product and as a result no proper system of accounting records are instituted. The focus of the study was to examine the bookkeeping practices among small scale business in the Kumasi metropolis. Both primary and secondary data were used. The instrument used for the gathering of data includes questionnaire, interview and observation. The questionnaires were administered to the various small scale business owners in the metropolis. Interview was used to obtain from the respondent on how their accounting records are kept. The findings revealed that, due to lack of knowledge in keeping books of account, improper records are kept by most small and medium enterprises in the metropolis. Again, the various business owners showed reluctance to be trained or attend further studies due to the cost involved in training and education. Recommendation was made to the various small scale businesses. This got to do with activities of government organization and others should be intensified, financial statements of these enterprises should be requested for approval of loans by banks and laws should be enacted in other to improve the record keeping practices in the metropolis and also have access to credit facilities from any financial institutions.