ABSTRACT
mso-hansi-theme-font:major-latin">Most of the existing research literature on
accounting in Nigeria SMEs tends to be more biased toward the use of financial
accounting techniques and methods by small business onwers, information
technology adoption as well as research in credit accessibility for SMEs, more
so only remote exists in regard of the adoption of modern accounting techniques
by SMEs in Nigeria.
mso-hansi-theme-font:major-latin">Many small business owners are daunted by the
mere idea of accounting techniques and bookkeeping. But in reality, both are
pretty simple. Keep in mind that bookkeeping and accounting techniques shares
two basic goals: to keep track of income and expenses, which improves chances
of making a profit, and to collect the financial information necessary for
filing various tax returns. There is no requirement that records be kept in any
particular way. As long as records accurately reflect the business’s income and
expenses, there is a requirement, however, that some businesses use a certain
techniques of crediting their accounts: the cash method or accrual method.
Depending on the size of the business and amount of sales, one can create own
ledgers and reports, or rely on accounting (Williams et al 1999). Elements of
financial position, including property, money received, or money spent, are
assigned to one of the primary groups, that is, assets, liabilities, and
equity. Within these primary groups each distinctive asset, liability, income
and expense is represented by respective “account”. An account is simply a
record of financial inflows and outflows in relation to the respective asset,
liability, income or expense. Income and expense accounts are considered
temporary accounts, since they represent only the inflows and outflows absorbed
in the financial-position elements on completion of the time period.
mso-hansi-theme-font:major-latin;mso-bidi-font-family:Times-Roman">According to
Goltz (2011), poor accounting techniques are one of the top ten reasons why
small-scale businesses fail. i.e. you cannot be in control of a business if you
do not know what is going on. With bad numbers, or no numbers, a firm’s is
flying blind, and it happens all of the time, this
mso-hansi-theme-font:major-latin;mso-bidi-font-family:"Arial Narrow"">affect
the operations and performance of SMEs in Nigeria especially this issue of lack
of adoption of good accounting techniques/method which is a worm eating deeply
and the large chunk of revenues generated by these SMEs for their growth and
survival. These have led to increase in record of dearth of Small and Medium
Scale Enterprise (SMEs).
mso-ascii-theme-font:major-latin;mso-hansi-theme-font:major-latin;color:windowtext">The
major objective
TimesNewRoman;mso-hansi-theme-font:major-latin;mso-bidi-font-family:TimesNewRoman;
color:windowtext">aim
major-latin;color:windowtext">is to examine the effect of accounting techniques
on small scale business performance and to also evaluate the knowledge levels
of accounting techniques among small business owners and how this affects
enterprise performances.
mso-hansi-theme-font:major-latin">This study will be of immense help to the
mso-hansi-theme-font:major-latin;mso-bidi-font-family:"Arial Narrow"">Small and
Medium Scale Enterprises Development Agency of Nigeria (SMEDAN)
mso-hansi-theme-font:major-latin">, it will also also assist the Agency in
determining or formulating their future plans and also
mso-hansi-theme-font:major-latin;mso-bidi-font-family:Calibri">be a source of
knowledge to small-scale enterprises (SSE) on how to maintain proper accounting
records and standards.
mso-hansi-theme-font:major-latin">The research work has focused on SMEs because
these firms in Nigeria account for more than 90% of the country’s business
(Central Companies Directory, 2010). However,
mso-bidi-font-family:Calibri">the research was limited to small and medium
scale enterprises operator in osun metropolis due the schedule of the
researcher.
major-latin;mso-hansi-theme-font:major-latin;mso-bidi-font-family:Swiss721BT-Light">
