ABSTRACTThe study sought to assess the effect of bookkeeping on growth and development of SMEs in Ghana. The study adopted quantitative research approach. The study employed the descriptive survey design. The target population was drawn from management (owners) and employees of registered SMEs in the Sunyani municipality. Out of the …
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ABSTRACTThe study sought to assess the effect of bookkeeping on growth and development of SMEs in Ghana. The study adopted quantitative research approach. The study employed the descriptive survey design. The target population was drawn from management (owners) and employees of registered SMEs in the Sunyani municipality. Out of the target population of 8500, simple random sampling technique was employed to sample 321 respondents for the study. Questionnaire was used to solicit primary data from the respondents of the study. Simple tables and figures were used to present the findings of the study whiles percentages, frequencies, mean, standard deviation and linear regression analysis were used to interpret and analyse the findings. From the field survey, the findings show that majority of the SMEs owners/managers do keep subsidiary books of accounts. Again, various challenges SMEs operators encounter with regard to bookkeeping include factors such as: bookkeeping being too expensive to operate; bookkeeping being time consuming; bookkeeping being difficult to maintain the system; bookkeeping requiring more staff; and bookkeeping requiring technical knowledge. Nonetheless, respondents were of the perception that bookkeeping is very important in their organization and it also ensures accountability and quality information necessary to access credit facilities from financial institutions. Finally, the results showed a positive relationship exist between bookkeeping practices and SMEs growth and development in the Sunyani municipality. The study recommends that in order to enhance the profitability of small-scale enterprises and their continuity, there is need for adequate record keeping which will help the proprietors to keep track of the performance of these enterprises.
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