THE EFFECT OF ACCOUNTING TECHNIQUES ON SMALL BUSINESS PERFORMANCES.

ABSTRACT

This study was intended to examine the effect of accounting techniques on small scale business performance.

This study was guided by the following objectives; Evaluate the knowledge levels of accounting techniques among small business owners and how this affects enterprise performances, Investigate the influence of accounting techniques on SMEs performance, Determine the influence of accounting techniques and practices on financial decision-making by Managers/ operators of SMEs, Determine the factors hindering and/or enhancing accounting techniques/practices in small business enterprises, Examine the relationship between Accounting Techniques and SMEs operations and survival, evaluate challenges of accounting techniques among small business owners and to Suggest possible solution to the challenges confronted by various small scale business.

The study employed descriptive and cross sectional research designs; questionnaires in addition to library research were applied in order to collect data. Primary and secondary data sources were used and data was analyzed using the descriptive statistics, chi- square and analysis of variance (ANOVA) tool at 5% level of significance which was presented in frequency tables and percentage. The respondents under the study were 50 small scale business owners.

The study findings revealed that majority of the respondents did kept do not employed accounting techniques in recording their business transactions. Rather Records are kept on cash basis. Sales purchases, creditors and debtors Receipts, invoices, payment vouchers are used as record keeping documents which help to reduce operating costs, improve efficiency and productivity.

The significance of this study will create through documentation, an awareness of the importance of accounting techniques and basic accounting procedures to small-scale enterprises.