Accounting Record Keeping And Performance Of Small Enterprises Case Study (Mukono District)

ABSTRACT

Small scale businesses are an economic course \O the establishment of medium and large scale business enterprises common worldwide as they contribute significantly to economic development.

Their rate of failure is however very high as attributed to various factors among which is the poor record keeping and maintenance of necessary accounting books.

The research work was assessing accounting record keeping and organizational performance in terms of profitability, liquidity and prospects for expansion of sma11 scale enterprises.

The study was conducted in Mukono district over a sample of selected 39 firms using analytical descriptive and cross-sectional survey designs. Both primary and secondary

data were used. With primary data, interviews and self administered questionnaires were used.

Data was analyzed and summarized and the fo11owing were the findings. Some small scale enterprises prepared are maintained some accounting records and their performance was fair than those firms where the owners kept no accounting records.

However, information held was partial as it much emphasized credit sales. With this reference. record keeping affected the performance of small scale enterprises.

In line with the findings, the following recommendations were proposed for the benefit of small scale businesses.

They should get access to credit terms so as to widen their scale of operation, attaining business education through seminars and workshops, subscribe to business organizations as well as employing professional business people for increased business performance.

A business firm may adopt all or any of the above solutions for effective operations whichever is appropriate.