UTILIZATION OF ACCOUNTING PRACTICES BY OWNERS OF SMALL AND MEDIUM SCALE ENTERPRISES FOR BUSINESS SUCCESS IN ANAMBRA STATE
Abstract
This study ascertained the extent of utilization of accounting practices by owners of small and medium-scale enterprises for business success in Anambra State,and this was necessitated by the need to ensure that SMEskeep proper books of accounts and put adequate maintenance and control measures. Two research questions guided the study and two null hypotheses were tested. Descriptive survey research design was adopted for the study. The population comprised all 2,050 registered owners of SMEs in Anambra State. Sample size of 615 was used, through proportionate stratified random sampling technique. A 22-item structured questionnaire was used. The instrument was validated by three experts. Cronbach Alpha was used to determine the internal consistency of the instrument and obtained an overall coefficient value of 0.86. Mean and standard deviation were used to answer the research questions, while Analysis of Variance (ANOVA)was used to test the null hypotheses at 0.05 level of significance. The findings of the study revealed that bookkeeping practices was greatly utilized, while the auditing practices are moderately utilized. The owners of SMEs differ significantly in their mean ratings on the extent they utilized bookkeeping accounting and auditing practices based on type of enterprises. The study concluded thatauditing practiceswasnot widely used which is as a result of SMEs owners inability to determine its important in promoting effectiveness in recording of business transactions systematically and more accurate for financial reports.It was therefore recommended among others that,owners of SMEs in Anambra State should utilized auditing practices to a great extent because it will enable them have great influence on consumers perception of product and services as an incentive to consumers to patronized their product.
Keywords:Utilization,Accounting Practices, Owners, Small and Medium-Scale Enterprises
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