Abstract:
Scholars argue that the low performance of SMEs partly results from their
inability to keep proper accounting records. Yet, extant literature addressing the
effect of accounting record keeping on the performance of SMEs in the Ghanaiancontext
is scanty. To bridge this gap, the present study sought to assess the effect
of accounting record keeping on the performance of SMEs in the Cape Coast
Metropolis. The study employed the quantitative research approach, descriptiveexplanatory
research design, and cross-sectional survey design. Out of a sample
size of 341, 288 completed and valid questionnaires were retrieved hence a
response rate of 84.46%. The multi-stage sampling technique was used in selecting
samples for the study. A semi-structured questionnaire was employed for data
collection and it was self-administered. Descriptive and inferential statistics were
used to analyse the data. Consistent with expectations, the study found that SMEs
operating within the Cape Coast Metropolis scored low on the adequacy level of
accounting record keeping. To add, the study revealed that the low adequacy level
of accounting record keeping led to low performance among SMEs operating
within the Cape Coast Metropolis. Additionally, it was discovered that the SMEs
were faced with challenges that greatly hamper proper accounting record keeping.
The study recommends that institutions that are responsible for improving the
performance of SMEs, such as Business Advisory Services, National Board for
Small Scale Industries, and Ghana Chamber of Commerce should provide support
services to these enterprise’s in the area of proper accounting record keeping.
