A STUDY OF ACCOUNTING RECORDS IN SMALL SCALE BUSINESSES
ABSTRACT
The study was about the effect of accounting record keeping and performance of small scale business in Nigeria The study design comprised of a combination of both descriptive and cross sectional research designs and both qualitative and quantitative data were employed. Stratified sampling was used to determine the sample size. A sample size of 136 computed by a formula for krejcie and Morgan 1970 was considered primary data was collected by the use of questionnaires which focused on the research questions. Secondary data was got from journal reports and internet which are in relation to the study objectives. Data entered into excel was presented by the use of frequency tables. Data analyzed by statistical packages for social scientists (SPSS) was presented in form of Pearson correlation coefficient table which showed the strength of relationship between accounting record keeping and performance of small scale business units. Findings on effectiveness of accounting record keeping in small scale business units showed that accounting record keeping enhances business decision making and adjustment accounting record play a role in reduction of operating costs, improves efficiency and productively. Recommendation on the accounting record keeping in small scale business units, operators of small scale business units need to ensure that complete and accurate business records are kept to enhance business decision making and improve efficiency and productivity.
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Record keeping refers to day-today maintenance of business transactions and accurate manipulating them to produce accurate and consistent financial statements (Parker, 2000). Record keeping is the process of keeping full, accurate, up to date business records (Reynolds Sarah, 2010). Proper record keeping can help business to effectively manage cash flows and stay abreast of profits and losses and develop plans for future based finance trends (N. Madison, 2002, Penn et al.,(1994), Jones (2003)).
Record keeping cycle involves a process of that is followed by Accountants and book keeping staff in processing raw financial data into output information inform of financial statements (Mc Lean (1999) The process ranges from creation of business transactions, analyze and record the transactions in the journals by account name, post information from journals to ledgers, prepare a trial balance, journalize adjusting entries, post adjustments from the journal to