Record Keeping Case Study

1164 Words3 Pages

Several factors including record keeping is often cited as a driver of business performance of SMEs. Keeping records is declared as one of the important factors affecting business performance. Peacock (1988) found that the lack of a record of incompetent and / or accounting has led to the failure of many SMEs. Along similar lines, McCannon (2002) believes that, many SMEs fail because the owner cannot make timely management decisions and resulting from a major lack of adequate records. Based on the benefits of record-keeping, one would therefore wonder why some SME owners failed to keep books of account. It seems that most SMEs are not aware of the contribution of cooperatives record keeping for the bottom line. In fact, many do not see the …show more content…

It is recommended that SMEs keep detailed accounting records and to audit their financial statements every year. Unfortunately for most SMEs in Kangar managed by the owners, they sometimes believe they have less need for financial accounting information for their personal involvement in day-to-day operations. inadequate accounting system is a major factor in the failure of a small business. always follow the quality records SME attract investors to invest and for financial institutions to provide financial (Tagoe et al., …show more content…

Okoli (2011) Link keeping proper records for the benefit of small enterprises in Nigeria and argues that the lack of proper record keeping made it impossible for small business owners to make critical evaluation of their performance
1.6.2.2 Improper Accounting Records Keeping
Despite the fact that much of the evidence contained in the record-keeping role in business performance, many SME owners do not keep records, with many of them indicated that record-keeping is time-consuming. In fact, many of them still are not sure about the role of record-keeping in business growth, performance and profitability.
According to Uzoma (1991), the causes of business failure, including competition, lack of capital, location and premature development.
Osagbemi (1981) the assets of the main factors responsible for the failure of small businesses, including a lack of luck, money is insufficient, inadequate preparation, a lack of business relations, the low level of business education, lack of experience, poor health, lack of management capabilities and

Open Document