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  2. Vol 3 Issue 1, 2021
  3. EFFECTS OF RECORDS KEEPING ON FINANCIAL PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN THE SUNYANI MUNICIPALITY
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SISTER NGOZI IGWUDU. GLORIA

EFFECTS OF RECORDS KEEPING ON FINANCIAL PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN THE SUNYANI MUNICIPALITY

The main goal of the study was to examine the effects of recording keepings on financial performance among SMEs in the Sunyani municipality. To achieve this goal, the descriptive research design was adopted. Population of the study was drawn from SMEs of which twenty (20) of them were sampled using the purposive and convenience sampling techniques. Data collection instruments employed include questionnaire and financial statements of the sampled SMEs covering 2015 to 2018 financial years. Both descriptive and inferential statistical analytical tools were employed to analysed the data. The study concluded that the SMEs had the desired experience to furnish the study with information on accounting systems, the manner in which accounting records are maintained by SMEs and their financial performance. Most SMEs in Sunyani Municipality started their business with credit as their source of starting capital. It further concluded that most SMEs in Sunyani Municipality keep the records of their businesses as it is the gateway to better financial performance. Based on the study’s findings, the following recommendations were made on the effect of record keeping on the financial performance of SMEs in Sunyani Municipality. The study recommended creation of reforms that can promote effective performance of SMEs. Small business owner-managers should develop competencies to enhance the quality of record keeping, with specific focus on type, adequacy and updated-ness of records. It is through such records that the danger signals of poor performance can easily be detected to lead to corrective action being promptly taken, hence promoting the long-term liability of the business.