Financial Reporting and Funding of Sme’s and Its Implications During Covid-19 in the Nalerigu /gambaga Municipality of the North East Region

Abstract

This study is on financial reporting implications of COVID-19 on Small and Medium-sized Enterprises (SMEs) Funding in Nalerigu/Gambaga Municipality. The study was carried out to determine the financial reporting challenges facing Small and Medium sized Enterprises (SMEs) in the midst of COVID-19 and the implications on access to credit facilities in the Nalerigu/Gambaga Municipality. The survey method and time series data were used and data were collected through the use of questionnaires. Data generated were analysed with descriptive and inferential statistics. The study found that the financial reporting challenges facing SMEs in accessing funds are: inadequate accounting records, manual accounting system and non-usage of the banking system. The study recommends, among others, that SMEs should seriously consider record keeping and preparation of financial statements seriously in order to take advantage of credit and other funding support opportunities available to SMEs, in the midst of the effects of COVID-19 pandemic.