Accounting Practices and Control Systems of Small and Medium Size Entities: A Case Study of Techiman Municipality
Journal of Finance and Accounting
Volume 2, Issue 3, May 2014, Pages: 30-40
Received: Mar. 19, 2014; Accepted: Apr. 20, 2014; Published: Apr. 30, 2014
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Authors
Adjei Luther Ntim, Department of Accounting. Valley View University, Techiman, Ghana
Oteng Evans, Department of Banking and Finance. Valley View University, Techiman, Ghana
Fianu Anthony, Department of Accounting. Valley View University, Techiman, Ghana
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Abstract
It is recognized that appropriate accounting information is important for a successful management of a business whether it is large or small. Currently, at the European Union (EU) level, accounting regulation is in place for large and small enterprises with the coming into being differential accounting reporting standard. However, in Ghana, There is no obligation for the sole trader or small business owner to disclose any information about the financial performance of his business, to prepare financial statements or to have the accounts of the business audited. Because of the importance of appropriate accounting information for owners and managers of small enterprises and their different stakeholders, it was considered important to study the various accounting and control systems applied in the Small and Medium Scale Enterprises (SMEs) in Ghana, taking Techiman Municipality as a case study. To meet the objective of this study, the researchers sampled 50 firms operating in various sectors of economic activity. A structured questionnaire was used to collect primary data from the respondents which were analyzed to generate frequencies and percentages. The study revealed that SMEs kept at least one book of account to record business transactions. The results obtained on the control system of SMEs revealed that SMEs set up various accounting controls in their operations. The results also revealed that, the need to prepare a complete set of financial statements is determined by the size of the firm, age of business and engagement of accounting personnel. It is recommended that national regulators must develop specific accounting guidelines for SMEs and develop accounting training programmes for entrepreneurs in small businesses
Keywords
Accounting Controls, Enterprise, Accounting Practices, Small and Medium Size Enterprises
To cite this article
Adjei Luther Ntim, Oteng Evans, Fianu Anthony, Accounting Practices and Control Systems of Small and Medium Size Entities: A Case Study of Techiman Municipality, Journal of Finance and Accounting. Vol. 2, No. 3, 2014, pp. 30-40. doi: 10.11648/j.jfa.20140203.11
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