AN EVALUATION OF INTERNAL CONTROL SYSTEMS OF SELECTED SMALL AND MEDIUM ENTERPRISES IN THE SUNYANI MUNICIPALITY IN THE BONO REGION OF GHANA

ABSTRACTThe study aimed to evaluate the accounting and control systems practiced by SMEs in the Sunyani Municipality using the following objectives; to find out the various accounting and control systems used by SMEs, to find out the challenges faced by SMEs in using accounting and control systems in their business … See more

ABSTRACTThe study aimed to evaluate the accounting and control systems practiced by SMEs in the Sunyani Municipality using the following objectives; to find out the various accounting and control systems used by SMEs, to find out the challenges faced by SMEs in using accounting and control systems in their business operations, to identify the benefits SMEs derive by using accounting and control systems in their business operations. The research design employed in the study was casual comparative in nature under which questionnaires were used in collecting data from 132 respondents who were selected through convenience sampling technique. Findings of the study revealed among others that, the major accounting and control systems used by sampled SME operators in the Sunyani Municipality are financial record keeping and working capital management. The major challenges identified with regard to using accounting and control systems by SMEs in their business operations were found to include lack of professional accounting staff, poor financial management systems, among others. Based on the findings, it was recommended, among other things, that, SMEs must inculcate accounting and control systems in their financial administration of their business to bring improvements in managing their finances. Finally, SMEs must hire qualified accountants on part-time bases to manage their finances as well as keep financial records of the business professionally. This may aid in making realistic budgets/financial projections.

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