The relationship between accounting knowledge and the performance of small scale businesses in Wakiso Town Council, Wakiso District

Abstract

This research dissertation is composed of five chapters, the study focused on the relationship between accounting knowledge and the performance of small scale businesses in Wakiso Town Council. The aim of the study was to identify and establish the relationship between accounting knowledge and performance of small businesses basing on the following objectives; to identify the effect of record keeping on performance, to determine how cash budgeting affects performance and to determine how financial reporting affect performance of SME’S. The study design comprised a combination of both quantitative and qualitative approaches. Stratified and purposive sampling was used to determine the sample size and this was computed by a formula for Krejcie and morgan (1970). Primary data was collected by the use of questionnaires which focused on the research statements and secondary data was got from journals, internet and reports from different researchers. Data was analyzed by statistical packages for social scientists SPSS version 16.0 was presented in form of Pearson correlation table which showed the strength of the relationship between accounting knowledge and performance of small business. Findings from the study revealed that there was a significant relationship between the variables of accounting knowledge of record keeping r=0.991** p ≤ 0.01, Cash budgeting r=0.940** p ≤ 0.01, financial reporting r=0.921** p ≤ 0.01 with performance of small businesses. The study therefore concludes that there is a significant relationship between accounting knowledge and performance of small business. Recommendations on accounting knowledge in small businesses need to ensure that complete and accurate business records are kept to ensure accounting knowledge in businesses to enhance business decision making and improve efficiency and productivity.