Accounting Practices And Performance Of Smes: A Case Of Mukono Central Division

ABSTRACT

The study sought to establish the accounting practices utilized by the SMEs, the motivation for and against the utilization of these practices and whether the utilization of accounting practices of interest have performance implications for SMEs with same magnitude. The study adopted a survey research approach to achieve the three study objectives. The study also adopted purposive sampling method to get 90 SMEs who participated in the study. The study utilized correlation mean and standard deviation to address objectives one and two of the study and correlation and regression analysis to address the third objective of the study. The study found that an improvement in keeping and preparing purchases and sales ledgers to be associated with improvement in SME performance. The findings also revealed that most of the SMEs to a moderate extent are motivated to utilize accounting practices to keep track of their business activities. However, the study also discovered that most of the SMEs are constrained from utilizing these practices mostly because of lack of training in accounting. The results revealed that accounting practices have some significant implications on the performance of the SMEs in Mukono central division. This finding was based on the regression and correlation analysis. With these findings the study makes a contribution of providing empirical evidence that has been widely missing to channel the presently passionate discussion surrounding the issues of accounting practices and performance of SMEs in the study context.