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Effect of Good Accounting System on the Performance of Small Scale Enterprises in Nigeria

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Description

– Effect of Good Accounting System on the Performance of Small Scale Enterprises in Nigeria –

Download Effect of Good Accounting System on the Performance of Small Scale Enterprises in Nigeria. Accounting students who are writing their projects can get this material to aid their research work.

Abstract

According to (Hussy, 2014), accounting system is defined as “the system designed to record the accounting transactions and events of a business and account for them in a way that complies with its policies and procedures.

The basic elements of the accounting system are concerned with collecting, recording, evaluation, and reporting transactions and events”.

Accounting system has also been considered as an integral aspect of the internal control system of an entity which entails the recording, keeping, analyzing, summarizing, interpretation and communication of various financial transactions for the purpose of planning, control and decision making.

Introduction

Many new business owners are daunted by the mere idea of book keeping and accounting. But in reality, both are pretty simple.

Keep in mind those book keeping and accounting share 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 planning, decision making and for filing various tax returns (Barbara, 2016).

There is no clear requirement that records should 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 method 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 2013).

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