A study of Financial Accounting Practices of Small and Medium Scale Enterprises (SMEs) in Ho Municipality, Ghana

Justice Stephen Tetteh Zotorvie

International Journal of Academic Research in Business and Social Sciences, 2017, vol. 7, issue 7, 29-39

Abstract: This paper examined the financial accounting practices of SMEs drawing on a survey of 225 ownermanagers in Ho Municipality. The results revealed that majority of SMEs failed to keep proper accounting records pertaining to their businesses. Consequently, it was difficult for the owner-managers to determine the profit earned or loss suffered in the business during a particular accounting period in addition to the position of assets and liabilities to be able to strategize and make certain adjustments on their businesses.The major reasons for the entities failure to maintain proper accounting records and prepare a complete set of financial statements included high cost of hiring qualified accountants and lack of accounting knowledge on the part of some owner-managers. It is recommended that the National Board for Small Scale Industries (NBSSI) in collaboration with the accounting bodies should organize accounting training programmes for owner-managers of SMEs on proper bookkeeping and accounting practices.

Keywords: Accounting Information; Accounting Practices; Accounting records; Small and Medium Scale Enterprises (SMEs); Owner-Managers (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hrmars.com/hrmars_papers/A_study_of_Financi ... nicipality_Ghana.pdf (application/pdf)
http://hrmars.com/hrmars_papers/A_study_of_Financi ... nicipality_Ghana.pdf (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hur:ijarbs:v:7:y:2017:i:7:p:29-39

Access Statistics for this article

More articles in International Journal of Academic Research in Business and Social Sciences from Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences
Bibliographic data for series maintained by Hassan Danial Aslam ().