In running a business whether a small
scale or large scale, there has always been a need to achieve the best business
decisions by example all available alternative courses of action.
business decisions are based on records of financial activities which have been
undertaken to a considerable extent, to project the future of the business with
the purpose of the several parties, e.g. investors, government, general public
who may not be involved in the management of business, but will be interested
in the out come of the management actions especially in financial aspect.
is concerned especially with the role of accounting as means of diving
information, with relevant attention to small scale business, as well as
small-scale business characteristic, and lastly, the role of accounting
personal in the business.
1.2 STATEMENT OF THE
Patronage is a
problem usually encountered by business such as the case study. This is usually
due to inability of prospective customers to bargain price, which is a common
practice in Ilorin, in order to pay the amount that favours them. Moreover,
there is generally high cost of goods and services and this diversely affects
FAS supermarket limited, because there are other expenses which it incurs to
make good available thereby making the selling price higher.
of the company is insufficient for it to create multiple sales outlets in other
to increase sales, or diversity.
pilferage is a common phenomenon in the company and there is need for provision
of security to prevent these eventually economic losses.
1.3 OBJECTIVE OF THE
The aims of
this chapter are to illuminated or throw more lights on the method of research
carried out in the process of writing this project.
The sole aim
of the project being that some problems of financial accounting in a
small-scale business are to be looked at, the causes of those problems, and to
suggest an appropriate solution to each problem discussed. And finally to weigh
the value or appouse the role that financial information plays in eradicating
or eliminating these problems.
things should be known under the objectives:
To ascertain the level of personal in this company
(Accounting personnel) and see whether the financial activities of these personnel
correspond with the laid down rulers of accounting.
To make recommendation on what to do to remove or remedy the
weaknesses identified in the small-scale business organization.
To ascertain the role of financial data in a small business
concern, so as to make a lasting suggestion in respect of the information.
To identify financial documents not being kept in the
company’s books which are of substantial importance of them.
To observe practically, the problems faced by financial
accounting in a small – scale establishment (FAS supermarket).