THE ROLE ACCOUNTING RECORDS ON THE PERFORMANCE OF SMALL SCALE INDUSTRIES IN NIGERIA [A CASE STUDY OF SELECTED LOCAL GOVERNMENT AREAS IN LAGOS STATE]


THE ROLE ACCOUNTING RECORDS ON THE PERFORMANCE OF SMALL SCALE INDUSTRIES IN NIGERIA [A CASE STUDY OF SELECTED LOCAL GOVERNMENT AREAS IN LAGOS STATE]

ABSTRACT

This research work examined the role of accounting record on the performance of small scale industries in Nigeria with special reference to selected Local Government Areas in Lagos State. The current trend and development in small scale industries in Nigeria prompted the interest of this research work. The objectives was to provide the means of improving managerial skills for effective and efficient running of small business, and to also provide means of maintaining proper accounting records and control among others.

The first result showed that there was significant relationship between managerial skills and effective and efficient running of small scale business. The second findings revealed that. There were significant relationship between proper accounting records and fraudulent practices of small scale industries. Also other findings have it to positive.

This research work therefore suggested that the transaction arising from small business activities should at all times are recorded in such a manner that the profitability of small scale business owners is ascertained.

However, the owner of a small business has no time for elaborate system of book-keeping. Yet it is essential for him to keep a clear and accurate account. Surprisingly, many small scale industrialists do not know whether their businesses are operating at a profit or at a loss, Book-keeping in a small scale business, plays a vital role no matter how efficient a business is run. Failure to keep adequate records may spell doom for the company. The recording of all transaction in terms of money value is the first purpose of book-keeping. The records in turn provide all information to compare the cost of carrying on any form of business with the revenue derived from such business and considering other who have invested money in them to know whether the company is making profit or loss. The accounting records will serve the purpose of giving the owner information on the degree of efficiency or otherwise of its management, how and where it earns most income? What trends therefore are in the trades or services concerned? And, or what steps may be taken to improve its earning capacity?

Accounting records are not only good, but may be required by law, legal and financial questions that may be raised by government agencies, banks, employees and shareholders. There questions can be accurately answered when written records of all business transaction is just like keeping the business history, and based on this" the owner may know whether the business is growing or not.

Despite the fact that book-keeping system is very important to small scale industrialist, many of them still keep away from keeping their accounting records because of the works involved. Some business men regard the system as a waste of time and fund because of the additional workforce that will be required and the cost of buying accounting materials for the use of business.

Finally, accounting record is an essential dignified and worthwhile vocation a step forward to high executive position and outstanding business success and it also solve the problems of proper decision making and policy implementation.

TABLE OF CONTENTS

CHAPTER ONE: INRODUCTION

1.1             Background to the study

1.2             Statement of the problem

1.3             Purpose of the Study

1.4             Research Questions

1.5             Research Hypothesis

1.6             Significance of the study

1.7             Scope and limitation of the study

1.8             Definition of Terms

1.9             Summary

1.10         Reference

CHAPTER TWO: LITERATURE REVIEW

2.1       Introduction

2.2       Theoretical Literature

2.3       Development of Accounting in Nigeria

2.4       Strategic Management practice in Small Business Enterprises

2.5       Small and Medium Enterprises

2.6       Structural Features of Small Industries in Nigeria

2.7       minimum Records to be kept By Small scale Industries

2.8       Accounting Records and Procedures for Small Scale Industries

2.9       Problems of small scale industries

2.10    Survival strategies for small scale business in Nigeria

2.11    Summary

References

CHAPTER THREE: RESEARCH METHODOLOGY

3.1       Introduction

3.2       Re-statement of Research Question

3.3       Re-statement of Research Hypotheses

3.4       Research design

3.5       The Study Population

3.6       Sample Size and Sampling Plans

3.7       Data Collection Instrument

3.8       Validity of instrument

3.9       Reliability of instrument

3.10    Data Analysis

Reference

CHAPTER FOUR:

DATA ANALYSIS AND INTERPRETATION OF RESULT

4.1       Introduction

4.2       Respondents Characteristics and Classification

4.3       Presentation of Data Analysis According to Research Questions 

4.4       Data presentation and analysis according to research Hypotheses

CHAPTER FIVE:

SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1       Summary

5.2       Summary of finding

5.3       Conclusions

5.4       Recommendations

5.5       Suggestions for further studies

Reference

CHAPTER ONE

INTRODUCTION

1.1    Background of the study

The Nigeria business system, particularly the small scale industries has undergone a number of changes in recent years. Most small scale industrialists in Nigeria engage in purchase of raw material into finished goods that would be sold to the public either in small quantity or in bulk. In return they must ensure that they pay for manufactured goods sold for any services they render if their business is of that nature [Ajonbadi, 2002]. Moreover, the final result of farming, manufacturing, trading or rendering of commercial or professional services [transporting, banking, insurance, education, consultancy etc.] must be ascertainable over a period of time which must be profitable if enterprises are to continuous in operations.

All the transactions and contracts arising from these activities therefore, must be recorded in such a manner that their profitability can be ascertained. The records are kept in term of money which acts as a common measure for estimating the value of purchases, sales, and contract for services, taxes and rates. This act of recording the financial transaction is referred to as book-keeping. It is also known as an art of accurate record keeping of data relating to financial transaction in any organization. The actual systematic recording of daily transaction in the appropriate books is called book-keeping [Wikipedia, 2012].

However, the owner of a small business has no time for elaborate system of book-keeping. Yet it is essential for him to keep a clear and accurate account. Surprisingly, many small scale business success and it also solve the problems of_ making and policy implementation.

1.2     Statement of the Problem.

Small scale industries have limitation and problems, although, all business organizations irrespective of their objectives have philosophy of growth survival and addictiveness [LawaI, 2003]. The inability of a business to maintain this philosophy can be regarded as business failure. Hence, the following paragraphs elaborate on the problems of the study:

i.       Lacks of managerial technical know - how: Here, majority of small scale industries lack necessary managerial know-how for effective and efficient running of business.

ii.      Poor financial control poses another problem. Here, the inability to maintain proper accounting records and have effect on the survival of a business. In other words, many small scale business owners failed because of their inability to understand the accounting system completely. Without complete records of every part of the business, an owner cannot get a clear picture of exactly how the business is progressing.

iii.    More specifically, inadequate records or failure to keep records of business transactions constitute another major problem causing small business going into liquidation in Nigeria. For instance an owner of business who invests in his business and trade with it, realizing N10, 300 will think he made profit of N10, 300 without taking into consideration an expense incurred during the period. Ascertain of actual profit cannot be obtained without keeping proper records of all transaction during the period. Also, another notable problem arises in the interpretation of financial data in evaluating the performance which may be due to non-existence of accounting records.

iv.    Inability to attract qualified manpower is major problem facing small scale industries in Lagos state. Most small scale cannot afford to employ competent and skilled manpower due to the financial status and reputation. Hence, once competent and skilled manpower cannot be employed, the financial and proper accountability become problems. Even where small scale industries are fortunate to employ qualified manpower, the general working conditions are very poor.

1.3   Purpose of the Study

The primary purpose of this study is to examine the role of accounting record on the performance of small scale industries in Nigeria. Therefore, the following paragraphs consider the main purpose of the study and it is to:

i.       Provide the means of improving managerial skills for effective and efficient running of small scale business.

ii.      Provide means of maintaining proper accounting records and control that does not give room for fraudulent practices.

iii.    Examine factors responsible for inadequate records or failure to keep records of small scale business transactions that leads to liquidation.

iv.    Determine proper skills involved in interpretation of financial data and evaluation of performance.

Determine means with which employee's satisfaction can be achieve through quality working conditions.

1.4             Research Questions

1.    What are the means of improving managerial skill for       effective and efficient running of small scale business?

2.    Would proper accounting records and control give room for fraudulent practices in small scale business?

3.  What factor is responsible for inadequate records of small scale business transactions?

4.    What skills should be used in the interpretation of financial data and evaluation of performance?

5.    Can employees' satisfaction be achieved through quality working conditions?

1.5             Research Hypotheses.

Ho: There is no significant relationship between    managerial skills and effective and efficient running of small scale business.

Hi: There is a significant relationship between managerial skills and effective and efficient running of small scale business.

Ho: There is no significant relationship between proper accounting records and fraudulent practices of small scale industries.

Hi: There is a significant relationship between proper accounting records and fraudulent practices of small scale industries.

iii.      Ho: There is no significant relationship between interpretation of financial data and evaluation of performance.

Hi: There is a significant relationship between interpretation of financial data and evaluation of performance.

iv.     Ho: There is no significance relationship between   inadequate records and liquidation of small scale industries.

Hi: There is a significance relationship between inadequate records and liquidation of small scale industries.

Ho: There is no significant relationship between employees' satisfaction and quality working conditions.

Hi: There is a significant relationship between employees' satisfaction and quality working conditions.

1.6   Significance of the Study

The research work was taken up to show the significance of accounting record to aggregate performance of small scale industries in Nigeria. Apparently, all organizations, whether small, medium or large industry needs to pay attention to the role and importance of accounting record. Consequently, it is clear that the contribution and importance of this study cannot be over emphasized.

It is expected that the study will educate readers on the importance and role of accounting records on the importance in performance of small scale industries in particular and the economy, in general. The study will also offer advice to government, policy makers in formulating policies that affect small scale businesses, individuals, industrialists, academia and professionals amongst others. The study will also offer professional advice as regards subject matter. project topics   final year project topics and research materials 

The result from the study should contribute to performance of small business and Nigerian economy.

1.7    Scope and Limitation of the study

The scope of study would cover all aspect of small scale industries with particular emphasis on the practices of financial and accounting record. It will examine the quality of the managerial skills and interaction between individual and the business environment, taking cognizance of proper accounting technique. More so, apart from time, fund and availability of relevant materials, this study will present relevant limitations in chapter three.

1.8 Definition of Terms

Accounting Records: This refers to all of the documentation and books involved in the preparation of financial statements or records relevant to audits and financial reviews.

Small scale Industries: These are small businesses that mostly use power and small machines and employ a small nu mbers of workers.

Performance management: This referred to a strategic and integrated approach to increasing the effectiveness of organization by improving the performance of people who work in them and by developing the capabilities of teams and individual contribution.

Performance: This is described as employees' ability to meet performance expectation is based on individual levels of capability, the degree of support provided by management, the processes, system and resources made available to them by the organization.

Management: This is defined as a multi-purpose organ that manages a business, manager and manages workers and work.

Accounting Concepts: Accounting concepts is fundamental or basic rules and regulations which must be observed in the preparation of financial statement of every business organization in order to attain objectivity fairness in the in the statement.

Accounting Conventions: These are the general norms and practices of the accounting profession which are expected to be complied with by accountants.

1.9    Summary

This chapter is systematically written to show introductory background to the study. This includes historical background of the study, Statement of the problem, purpose of the study, research questions, research hypotheses, scope and limitation of the study, definition of terms. This of course, will serve as basis with which the whole study relied.

.


TYPE IN YOUR TOPIC AND CLICK SEARCH.






RESEARCHWAP.COM

Researchwap.com is an online repository for free project topics and research materials, articles and custom writing of research works. We’re an online resource centre that provides a vast database for students to access numerous research project topics and materials. Researchwap.com guides and assist Postgraduate, Undergraduate and Final Year Students with well researched and quality project topics, topic ideas, research guides and project materials. We’re reliable and trustworthy, and we really understand what is called “time factor”, that is why we’ve simplified the process so that students can get their research projects ready on time. Our platform provides more educational services, such as hiring a writer, research analysis, and software for computer science research and we also seriously adhere to a timely delivery.

TESTIMONIES FROM OUR CLIENTS


Please feel free to carefully review some written and captured responses from our satisfied clients.

  • "Exceptionally outstanding. Highly recommend for all who wish to have effective and excellent project defence. Easily Accessable, Affordable, Effective and effective."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "I saw this website on facebook page and I did not even bother since I was in a hurry to complete my project. But I am totally amazed that when I visited the website and saw the topic I was looking for and I decided to give a try and now I have received it within an hour after ordering the material. Am grateful guys!"

    Hilary Yusuf, United States International University Africa, Nairobi, Kenya.
  • "Researchwap.com is a website I recommend to all student and researchers within and outside the country. The web owners are doing great job and I appreciate them for that. Once again, thank you very much "researchwap.com" and God bless you and your business! ."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "I love what you guys are doing, your material guided me well through my research. Thank you for helping me achieve academic success."

    Sampson, University of Nigeria, Nsukka.
  • "researchwap.com is God-sent! I got good grades in my seminar and project with the help of your service, thank you soooooo much."

    Cynthia, Akwa Ibom State University .
  • "Great User Experience, Nice flows and Superb functionalities.The app is indeed a great tech innovation for greasing the wheels of final year, research and other pedagogical related project works. A trial would definitely convince you."

    Lamilare Valentine, Kwame Nkrumah University, Kumasi, Ghana.
  • "Sorry, it was in my spam folder all along, I should have looked it up properly first. Please keep up the good work, your team is quite commited. Am grateful...I will certainly refer my friends too."

    Elizabeth, Obafemi Awolowo University
  • "Am happy the defense went well, thanks to your articles. I may not be able to express how grateful I am for all your assistance, but on my honour, I owe you guys a good number of referrals. Thank you once again."

    Ali Olanrewaju, Lagos State University.
  • "My Dear Researchwap, initially I never believed one can actually do honest business transactions with Nigerians online until i stumbled into your website. You have broken a new legacy of record as far as am concerned. Keep up the good work!"

    Willie Ekereobong, University of Port Harcourt.
  • "WOW, SO IT'S TRUE??!! I can't believe I got this quality work for just 3k...I thought it was scam ooo. I wouldn't mind if it goes for over 5k, its worth it. Thank you!"

    Theressa, Igbinedion University.
  • "I did not see my project topic on your website so I decided to call your customer care number, the attention I got was epic! I got help from the beginning to the end of my project in just 3 days, they even taught me how to defend my project and I got a 'B' at the end. Thank you so much researchwap.com, infact, I owe my graduating well today to you guys...."

    Joseph, Abia state Polytechnic.
  • "My friend told me about ResearchWap website, I doubted her until I saw her receive her full project in less than 15 miniutes, I tried mine too and got it same, right now, am telling everyone in my school about researchwap.com, no one has to suffer any more writing their project. Thank you for making life easy for me and my fellow students... Keep up the good work"

    Christiana, Landmark University .
  • "I wish I knew you guys when I wrote my first degree project, it took so much time and effort then. Now, with just a click of a button, I got my complete project in less than 15 minutes. You guys are too amazing!."

    Musa, Federal University of Technology Minna
  • "I was scared at first when I saw your website but I decided to risk my last 3k and surprisingly I got my complete project in my email box instantly. This is so nice!!!."

    Ali Obafemi, Ibrahim Badamasi Babangida University, Niger State.
  • To contribute to our success story, send us a feedback or please kindly call 2348037664978.
    Then your comment and contact will be published here also with your consent.

    Thank you for choosing researchwap.com.