The imperatives of Accounting and Financial Records in the development of Small Scale Enterprises in Nigeria.

Abstract

This study examines the imperatives of accounting and financial records in the development of small scale enterprises in Nigeria. The cardinal objective of the survey is to examine the imperative of accounting and financial records keeping on the development of Small Scale Enterprises in Nigeria. To achieve this main objective of the study, five operational objectives are set out for the study. The study adopts survey design to gather data through the administration of questionnaire for the study.  . Data collected were analysed using regression analysis through SPSS.  Result of analysis shows that accounting and financial record keeping in small scale enterprises is significant to effective performance and profitability of the enterprises although not all the selected industries maintained accurate financial record. Result also shows that only 80% of the selected industries keep accurate accounting records of financial transactions using standard procedures and types of financial record being kept include: Statement of comprehensive income, cash book, journals, income and expenditure account and workers performance and evaluation report. The study concludes that relationship exists between the accurate and regular accounting record keeping and profitability and performance of small scale enterprises in Nigeria and also between accounting record keeping and investment decision making and development cum profitability of small scale enterprises in Nigeria as in developed countries of the world. It is recommended that Small Scale Enterprises should tap from the advantage derive from the use of electronic system of recording in order to better their accounting record for enhance business performance.

Keywords Accounting, Accounting Records, Book Keeping, Ledger Account