Financial record keeping and performance of small and medium enterprises in Uganda:

Abstract

The study examines financial record keeping and performance of Small and Medium size enterprises in Uganda. The dimensions of the independent variable include; accountable documents, books of accounts and reconciliation statements and that of dependent variable include; turnover, liquidity and asset base as the measures of performance. The objectives of the study include; establishing the relationship between accountable documents and performance of SMEs, to establish the relationship between books of accounts and performance of SMEs and to establish the relationship between reconciliation statements and performance of SMEs. The study used a case study design. It adopted a quantitative approach for the study. The sample size was determined by Morgan and Krejcie (1970) which obtained a sample size of 19. Closed questionnaires were used in this study. The findings revealed that accountable documents are used by SMEs, books of accounts are maintained by SMEs and reconciliation statements are prepared to ensure that all transactions that occurred during the course of operations of businesses. The study concludes that there is a positive relationship between financial record keeping and performance of SMEs since majority of the respondents agreed that they maintain accountable documents, books of accounts and prepare reconciliation statements for all the transactions that have occurred. It can be suggested that SMEs should maintain other non-financial statements such as sales forecast, strategic plans and policies and procedures