Examining accounting practices of Small and Medium Enterprises in Accra Metropolis

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Accounting documentation plays a major determining variable in the success or failure of most companies around the world. The general objective is to assess the accounting practices of smes in the Accra Metropolis. The study population includes all smes within Accra. A total number of 120 smes were sampled for this study by using the stratified sampling method. The main data collection instrument was a questionnaire that contained mostly structured questions relating to the research objectives. With the use of closed-ended questions, the researcher was able to obtain specific responses from the respondents. The findings indicated that a majority of smes do not have the following: petty cash book, debtors receivable ledger, creditors payable ledger, payment voucher, stores ledger. It was deduced from the survey that more than 70% of the respondents do not operate their business with these accounting books and records. Again, the study found out that, the major challenges are the number of staff required to write and keep the books, the perception that it will make the smes pay more taxes, the difficulty in maintaining the accounting system, and the fact that it is time-consuming. The study recommended that SME owners and managers should take part in seminars and training programs designed for bookkeeping and financial management to help improve their record-keeping skills since the level of education has a direct relationship with proper bookkeeping practices.
A thesis submitted to the department of accounting and finance college of humanities and social sciences in partial fulfillment of the requirements for the degree of msc. Accounting and finance