The Analysis of the impact of Accounting Records Keeping on the Performance of the Small Scale Enterprises

This survey empirically investigates the effect of accounting records keeping on Small scale enterprises. In line with the objectives of this study, a descriptive design such as personal interviews and questionnaire were employed as the major techniques for primary data collection.
Data collected were analyzed using both the qualitative and quantitative methods. The descriptive statistics used were tables and percentages. Chi- square and analysis of variance (ANOVA) were employed to analyze data through STATA 10 version with the coefficient of determination (R2) 0.8974 which implied that 89.7% of the variation in financial performance could be explained by the level of accounting records keeping.
Following the outcome of this study, it is therefore concluded that that there is a strong positive relationship between accounting records keeping and performance of small scale enterprises. Accounting records keeping is essential for decision making which invariably affects performance of small scale enterprises.
It is recommended that the owners and managers of the small scale enterprises should embrace proper accounting records keeping practices for effective financial performance in their business.