The Effect of a Good Accounting System on the Performance Of Small Scale Enterprises

Description

– The Effect of a Good Accounting System on the Performance Of Small Scale Enterprises –

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Abstract

This research was critical analyses of the effect of a good accounting system on the performance of small scale enterprises as it effectively apply to Butterfield Bakery and as a case study.

The research was analyzed after sampling the opinion of staff of the company in order to get findings on the concept of good accounting system management.

The research conclusively established that optimal utilization of organization resources is it private or public, big, small or medium is imperative. It must ensure adequate and up to date training of its human resources as they are needed to carry out and manipulate other Input in order to make the organization effective.

This means that for an organization to be developed and be efficient, scientific and rational approach to good accounting system management is the key an underlying factor to achieve this project however.

Related literature review were revised and recommended for improvement were revised and recommendations for improvements were also made for the consideration of company good accounting system

Introduction

1.1 Background of the Study

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.

All forms of business organization, regardless of their sizes and nature of operation, require functional and reliable accounting system (Gabriel, 2012) An accounting system is an orderly, efficient scheme for providing accurate financial information and controls.

Regulatory requirements and internal administration policies are key considerations in the design of an effective accounting system.

Thus accounting systems show the books, records, voucher, and files and related supporting data resulting from the application of the accounting process. It involves the design of documents and transactions flow through an organization.

The uniqueness of small and medium scale businesses call for careful consideration in the design of accounting systems (Atijosan, 2013). Small and medium scale enterprises are a vast majority of businesses found in variety of primary and intermediate production of the economy (Ayozie, 2013).

These establishments have tremendous impact on the state and well-being of the nation in employment generation, as sources of national outputs and revenues, providing feedstock for large corporations.

They may 2 lack the sophistication to apply the detailed accounting processes, yet the value of accounting systems to these businesses is quite profound.

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