Abstract:
Effective financial reporting practices play an effective role in the survival of
small and medium-sized enterprises, but poor reporting practices is a
contributing factor for small and medium-sized enterprises’ failures. The
current study investigates the effect of financial reporting practices on the
performance in the Sekondi-Takoradi Metropolis while considering the
moderating effect of accountants’ characteristics. Also, the challenges relating
to financial reporting practices were additionally examined. The explanatory
research design was utilised to execute the objectives of the study. Through
the simple random sampling technique, the study responses were obtained
with a structured questionnaire. Estimations of the study were performed with
the Partial Least Square Structural Equation Modelling. The study found a
significant positive effect of accounting records keeping and financial
disclosure on business performance. On the other hand, comprehensive
financial statement contributed less to business performance. Moreover,
characteristics of accountants could not moderate the relationship between
financial reporting practices and business performance. Also, challenges on
the financial reporting practices were found. It is recommended that small and
medium-sized enterprises should enhance competencies of accountants on
financial reporting practices in order that it can contribute to performance.
