Abstract:
ABSTRACT
The study examined the effect of financial record-keeping on the financial
performance of small enterprises in the Sekondi-Takoradi metropolis. The
study employed the quantitative research approach. A total of 288 small
enterprises who have registered with the Ghana Enterprises Agency in the
Sekondi-Takoradi Metropolitan Assembly office formed the population. The
Statistical Product and Service Solutions software and SMART Partial Least
Square softwares were employed for the data analysis given the techniques
embedded in these applications. Out of the number, 165 small enterprises were
selected as the sample. The study revealed that small enterprises in the
Sekondi-Takoradi metropolis are challenged greatly with mixing up records in
relevant books, high cost of employing accountants, failure to predict income
and expenditure for budgeting purposes, inability to keep up to date financial
records in a realistic manner, and lack of knowledge on how to keep financial
records. The level of performance of small enterprises is best described as
being moderately improved especially when it comes to receiving money from
clients/customers on time, effective allocation of resources, and receiving
goods from suppliers on time. Only storage and retrieval practices made
statistically significant positive contributions to predicting the positive
moderate improvement in the performance of small enterprises in the
metropolis. It was recommended that training programs should be organized
by accounting firms operating in Ghana for owners and managers of small
enterprises so that such enterprises could ingrain in their operations, proper
record-keeping practices, systems, and protocols to better position them.
