PROBLEMS OF FINANCIAL ACCOUNTING IN A SMALL-SCALE BUSINESS

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PROBLEMS OF FINANCIAL ACCOUNTING IN A SMALL-SCALE BUSINESS
PROBLEMS OF FINANCIAL ACCOUNTING IN A SMALL-SCALE BUSINESS

CHAPTER ONE

 

1.1   INTRODUCTION

 

        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.

 

        All these 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 these records.

 

        These serve 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.

 

        This chapter 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 PROBLEM

 

        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.

 

        Also, capital of the company is insufficient for it to create multiple sales outlets in other to increase sales, or diversity.

 

        Finally, 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 STUDY

 

        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.

 

        The following 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).

PROBLEMS OF FINANCIAL ACCOUNTING IN A SMALL-SCALE BUSINESS

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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. All these 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 these records. These serve 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. This chapter 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... accounting project topics

PROBLEMS OF FINANCIAL ACCOUNTING IN A SMALL-SCALE BUSINESS

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