Paper Title
Impact Assessment Of Accounting System On The Performance Of Small And Medium Enterprises (Smes) In Bauchi Metropolis, Nigeria
Abstract
This paper is aimed at assessing the impact of accounting system on the performance of small and medium enterprises (SMEs) in Bauchi Metropolis, Nigeria. This paper used a survey method of data collection. The population of the study consists of all the existing sixty six (66) Small and Medium Enterprises listed on the list of registered SMEs with the SMEs Directorate of Bauchi State Ministry of Commerce and Industry as at December, 2014 that engaged in manufacturing/production activities only. The stratified random sampling technique was employed to arrive at the sample size of sixty (60) SMEs from six groups (Food and Beverages, Printing/Paper Product, Metal and Aluminum Products, Non Metallic Products, Wood and Wood Products and Farm Products). The 4 point Likert Scale ranging from 4 (Strongly Agreed) to 1 (Strongly Disagreed) was used. The cut-off point of 2.5 was used (i.e 4+3+2+1/4), any mean above this indicates agreement with the statement and vise-versa. The data collected were analyzed using descriptive statistics where mean rating was used as appropriate. It was established that even though proper accounting system enhances the level of profitability and financial strength of SMEs in Bauchi Metropolis, most of them do not keep proper accounting record. The paper recommends that to ensure a sound accounting system, SMEs operators should compelled themselves, to employ qualified accounting personnel, that will lead to growth and profitability of their enterprises.
Keywords- Accounting System, Financial Information. Performance, Record Keeping, Small and Medium Enterprises, Nigeria.