Accounting Practices and Control Systems of Small and Medium Size Entities: A Case Study of Techiman Municipality

Adjei Luther Ntim; Oteng Evans; Fianu Anthony

doi:doi:10.11648/j.jfa.20140203.11

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Accounting Practices and Control Systems of Small and Medium Size Entities: A Case Study of Techiman Municipality

Adjei Luther Ntim, Oteng Evans, Fianu Anthony

Published in Journal of Finance and Accounting (Volume 2, Issue 3)

Received: 19 March 2014 Accepted: 20 April 2014 Published: 30 April 2014

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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

Published in	Journal of Finance and Accounting (Volume 2, Issue 3)
DOI	10.11648/j.jfa.20140203.11
Page(s)	30-40
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2014. Published by Science Publishing Group

Keywords

Accounting Controls, Enterprise, Accounting Practices, Small and Medium Size Enterprises

References

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[3]	Mensah S. (2004) „A Review of SME Financing Schemes in Ghana‟, Presented at the UNIDO Regional Workshop of Financing Small and Medium Scale Enterprises, Accra, Ghana, 15-16 March 2004.
[4]	Nayak A, and Greenfield S, 1994. The use of management accounting information for managing micro businesses. In: Hughes A, Storey D (Eds.), Finance and the Small Firm. London: Routledge, pp. 182–231.
[5]	Mbroh, J. and Attom, B. (2011), Accounting and conytol systems practiced by small and micro enterprise owners within the Cape Coast metropolitan area of Ghana, Asian journal of business and management sciences, vol. 1 no. 9 (28-47)
[6]	Carsamer, E. (2009). Access To Credit by SMEs in Ghana:Does the type of business matter? Social Science Today.Winneba: Jim Waler Light and Salt Publishers.
[7]	Kayanula D. and Quartey, P. (2000). The Policy Environment for Promoting Small and Medium Sized Enterprise in Ghana and Malawi.Finance and Development Research Programme Working Paper .Series No.15.
[8]	Osei B, Baah-Nuakoh A, Tutu K.A, & Sowa N.K (1993), `Impact of Structural Adjustment on Small-Scale Enterprises in Ghana.
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[10]	Sathyamoorthi, C.R. (2001). Accounting and Control Systems in Selected Small and Micro Enterprises in Botswana, African Journal of Finance and Management, Vol.10 No.1, pp.96-109.
[11]	Maseko, D. and Manyani, O. (2011), Accounting practices of SMEs in Zimbabwe: an investigative study of record keeping for performance measurement: Journal of accounting and taxation vol. 3(8), pp. 171-181, December 2011.
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[14]	Olson O, Blomskvisk M, Dergard J, Jonsson C (2004). Accounting and Entrepreneurship: A Review and Discussion of the ScientificLiterature. Paper Presented at the 4th Asia-Pacific Interdisciplinary Research in Accounting Conference. 4-6 July. Singapore.
[15]	McChlery, S., Godfrey, A.D. and Meechan, L.(2005), Barriers and Catalysts to sound Financial management Systems in Small-Sized Enterprises, The Journal of Applied Accounting Research, Vol.7(iii), pp1-26.
[16]	Dewhurst J, Burns P, 1989. Business Planning Finance and Control.2nd Edition. London: MacMillan.
[17]	Holmes, S. and Nicholls, D. (1989), Modeling the Accounting Information Requirement of Small Businesses, Accounting and Business Research, 19 (74) 143-150.
[18]	Boachie-Mensah, F.O. and Marfo-Yiadom, E.(2005). Entrepreneurship and Small Business Management, Ghana Universities Press, Accra, p.2
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APA Style

Adjei Luther Ntim, Oteng Evans, Fianu Anthony. (2014). Accounting Practices and Control Systems of Small and Medium Size Entities: A Case Study of Techiman Municipality. Journal of Finance and Accounting, 2(3), 30-40. https://doi.org/10.11648/j.jfa.20140203.11

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ACS Style

Adjei Luther Ntim; Oteng Evans; Fianu Anthony. Accounting Practices and Control Systems of Small and Medium Size Entities: A Case Study of Techiman Municipality. J. Finance Account. 2014, 2(3), 30-40. doi: 10.11648/j.jfa.20140203.11

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AMA Style

Adjei Luther Ntim, Oteng Evans, Fianu Anthony. Accounting Practices and Control Systems of Small and Medium Size Entities: A Case Study of Techiman Municipality. J Finance Account. 2014;2(3):30-40. doi: 10.11648/j.jfa.20140203.11

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@article{10.11648/j.jfa.20140203.11,
  author = {Adjei Luther Ntim and Oteng Evans and Fianu Anthony},
  title = {Accounting Practices and Control Systems of Small and Medium Size Entities: A Case Study of Techiman Municipality},
  journal = {Journal of Finance and Accounting},
  volume = {2},
  number = {3},
  pages = {30-40},
  doi = {10.11648/j.jfa.20140203.11},
  url = {https://doi.org/10.11648/j.jfa.20140203.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20140203.11},
  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},
 year = {2014}
}

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TY  - JOUR
T1  - Accounting Practices and Control Systems of Small and Medium Size Entities: A Case Study of Techiman Municipality
AU  - Adjei Luther Ntim
AU  - Oteng Evans
AU  - Fianu Anthony
Y1  - 2014/04/30
PY  - 2014
N1  - https://doi.org/10.11648/j.jfa.20140203.11
DO  - 10.11648/j.jfa.20140203.11
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 30
EP  - 40
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20140203.11
AB  - 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
VL  - 2
IS  - 3
ER  -

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Author Information

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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APA Style

Adjei Luther Ntim, Oteng Evans, Fianu Anthony. (2014). Accounting Practices and Control Systems of Small and Medium Size Entities: A Case Study of Techiman Municipality. Journal of Finance and Accounting, 2(3), 30-40. https://doi.org/10.11648/j.jfa.20140203.11

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ACS Style

Adjei Luther Ntim; Oteng Evans; Fianu Anthony. Accounting Practices and Control Systems of Small and Medium Size Entities: A Case Study of Techiman Municipality. J. Finance Account. 2014, 2(3), 30-40. doi: 10.11648/j.jfa.20140203.11

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AMA Style

Adjei Luther Ntim, Oteng Evans, Fianu Anthony. Accounting Practices and Control Systems of Small and Medium Size Entities: A Case Study of Techiman Municipality. J Finance Account. 2014;2(3):30-40. doi: 10.11648/j.jfa.20140203.11

Copy | Download

@article{10.11648/j.jfa.20140203.11,
  author = {Adjei Luther Ntim and Oteng Evans and Fianu Anthony},
  title = {Accounting Practices and Control Systems of Small and Medium Size Entities: A Case Study of Techiman Municipality},
  journal = {Journal of Finance and Accounting},
  volume = {2},
  number = {3},
  pages = {30-40},
  doi = {10.11648/j.jfa.20140203.11},
  url = {https://doi.org/10.11648/j.jfa.20140203.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20140203.11},
  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},
 year = {2014}
}

Copy | Download

TY  - JOUR
T1  - Accounting Practices and Control Systems of Small and Medium Size Entities: A Case Study of Techiman Municipality
AU  - Adjei Luther Ntim
AU  - Oteng Evans
AU  - Fianu Anthony
Y1  - 2014/04/30
PY  - 2014
N1  - https://doi.org/10.11648/j.jfa.20140203.11
DO  - 10.11648/j.jfa.20140203.11
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 30
EP  - 40
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20140203.11
AB  - 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
VL  - 2
IS  - 3
ER  -

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