Publication Information
Journal: NAU Journal of Technology and Vocational Education
Volume: 8 (2023)
UTILIZATION OF ACCOUNTING PRACTICES BY OWNERSOFSMALL AND MEDIUM SCALE ENTERPRISES FORBUSINESSSUCCESS IN ANAMBRA STATE
Okoli, Constance Ifeanyi
omalishannewi@gmail.com Department of Technology and Vocational Education, Nnamdi Azikiwe University
Anyansi, Joy Obianuju
Department of Technology and Vocational Education, Nnamdi Azikiwe University
This study ascertained the extent of utilization of accounting practices by owners of small andmedium-scale enterprises for business success in Anambra State, and this was necessitated bytheneed to ensure that SMEs keep proper books of accounts and put adequate maintenance and control
measures. Two research questions guided the study and two null hypotheses were tested. Descriptivesurvey research design was adopted for the study. The population comprised all 2,050 registeredowners of SMEs in Anambra State. Sample size of 615 was used, through proportionate stratifiedrandom sampling technique. A 22-item structured questionnaire was used. The instrument was
validated by three experts. Cronbach Alpha was used to determine the internal consistency of theinstrument and obtained an overall coefficient value of 0.86. Mean and standard deviation were usedto answer the research questions, while Analysis of Variance (ANOVA) was used to test the null
hypotheses at 0.05 level of significance. The findings of the study revealed that bookkeeping practices
was greatly utilized, while the auditing practices are moderately utilized. The owners of SMEs differ
significantly in their mean ratings on the extent they utilized bookkeeping accounting and auditingpractices based on type of enterprises. The study concluded that auditing practices was not widelyused which is as a result of SMEs owners’ inability to determine its important in promotingeffectiveness in recording of business transactions systematically and more accurate for financial
reports. It was therefore recommended among others that, owners of SMEs in Anambra State shouldutilized auditing practices to a great extent because it will enable them have great influence onconsumer’s perception of product and services as an incentive to consumers to patronized their
product.
measures. Two research questions guided the study and two null hypotheses were tested. Descriptivesurvey research design was adopted for the study. The population comprised all 2,050 registeredowners of SMEs in Anambra State. Sample size of 615 was used, through proportionate stratifiedrandom sampling technique. A 22-item structured questionnaire was used. The instrument was
validated by three experts. Cronbach Alpha was used to determine the internal consistency of theinstrument and obtained an overall coefficient value of 0.86. Mean and standard deviation were usedto answer the research questions, while Analysis of Variance (ANOVA) was used to test the null
hypotheses at 0.05 level of significance. The findings of the study revealed that bookkeeping practices
was greatly utilized, while the auditing practices are moderately utilized. The owners of SMEs differ
significantly in their mean ratings on the extent they utilized bookkeeping accounting and auditingpractices based on type of enterprises. The study concluded that auditing practices was not widelyused which is as a result of SMEs owners’ inability to determine its important in promotingeffectiveness in recording of business transactions systematically and more accurate for financial
reports. It was therefore recommended among others that, owners of SMEs in Anambra State shouldutilized auditing practices to a great extent because it will enable them have great influence onconsumer’s perception of product and services as an incentive to consumers to patronized their
product.
Abdul-Rahamon, O. A. & Adejare, A. T. (2019). The analysis of the impact of accounting recordkeeping on the performance of the small enterprises. International Journal of AcademicResearch in Business and Social, 4(10), 52-69. Adeyemi, M. S. & Akanji, A. A. (2020). Role of book keeping on sustainability of small and mediumscale enterprises in Nigeria: A case study of selected SMEs in Osun State. International
Journal of Academic Management Science Research (IJAMSR), 4(9), 140-154. Retrievedfrom www.ijeais.org/ijamsr
Agbaje, A., Bonjuwon, M. & Abidoye, M. (2017). Impact of accounting and audit; service for small
and medium scale enterprises performance. Osogbo Journal of Management (OJM) 2(2), 21- 43. Agwu, M. and Emeti. C. I. (2014). Issues, challenges and prospects of small scale and mediumenterprises (SMEs) in Port-Harcourt City. European Journal of sustainable Development, 3(1), 101-114. Ezeugwu, C. I. & Negedu, E. (2014). Auditors’ reputation: The impact on compliance withinternational accounting standard by quoted companies. Kuwait Chapter of Arabian Journal
of Business and Management Review, 2(2), 28-37. James, Q. (2020). Bookkeeping practices of small and medium enterprises (SMEs). Higher EducationResearch Journal, 1(2), 46-54. Kari, K. (2020). Entrepreneurs define the meaning of business success. European Journal of
Sustainable Development, 3(1), 121-134. Kaye, M. (2019). Types of Accounting Practices. Bi2fluent.com/about-5345234 types-accounting- practices.html. Retrieved by: Jayne Thomson, LLB, LLM. Muteti, P., Namusonge, U. & Nzomo, A. (2018). The impact of demographic profile on strategichuman resource management practices and its challenges faced by human resource managers
in IT firm, India: Empirical study. International Journal of Economics and Management
Engineering, 9(9), 3214-3223. Ndirangu, N. (2018) Roles of Auditors in Small Business Performance. www.newtimes.co.rw/opinions/role-auditors-small-business-performance. Negoh, E. (2018). The role of bookkeeping on the survival of very small businesses in the Kumbamunicipality. International Journal of Advanced Engineering, Management and Science, 4(10), 54-63. Nsoke, P. U., Okolo, M. N. & Ofoegbu, N. G. (2021). Accounting practices and its effects onthegrowth of micro and small scale enterprises: Analysis from Nigeria. Universal Journal of
Accounting and Finance, 9(4), 574-587. doi: 10.13189/ujaf.2021.090405. Okafor, U. I. & Oji, R. N. (2021). Management accounting practices and performance of small andmedium-scale enterprises in Nigeria. International Journal of Business and Management
Invention, 10(6), 44-58. Retrieved from www.ijbmi.org
Okoli, C. I. & Ezenwafor, J. I. (2015). Managers rating of managerial skills considered necessaryfor
success of SME for curbing social vices in Anambra State. Nigerian Journal of Business
Education, 2 (3), 213-223. Retrieved from http://www.nigjbed.com.ng. Popescu, A. L., Deaconu, A. & Popescu, T. (2014). The impact of gender difference at Romaniansmall and medium enterprises (RSMEs) management level: Analyzed by organizational
citizenship behaviour (OCB) lens’. Procedia Economics and Finance, 8(2), 563–569. Retrieved from http://dx.doi.org/10.1016/S2212-5671(14)00129-4
Saoud, A. (2020). Analysis of financial statements. Al MuthannaUniversity: First Edition. Smile, D. and Ofosu, D. (2014). Marketing technologies and performance of SMEs in Ghana. European Journal of Business and Management, 6(5), 102-111. Retrieved fromwww.iiste.org
Udegbunam, E. O., Uchenu, C. A., Odimmega, C. G. & Macpherson, C. N. (2018). Electronicaccounting a tool for quality management of small and medium scale enterprises (SMEs) inthe 21st century Nigeria. Nigerian Journal of Business Education (NIGJBED), 5(2), 86-95. Retrieved from http://www.nigjbed.com.ng. Umanhonlen, O. F., Umanhonlen, I. R. & Enofe, O. A. (2022). The relevance of accountinginformation practice on small and medium scale enterprise (SMEs) in Nigeria: Atheoretical
appraisal. European Journal of Accounting, Auditing and Finance Research, 11(1), 8-44. doi:
https://doi.org/10.37745/ejaafr.2013/vol11n1844
Journal of Academic Management Science Research (IJAMSR), 4(9), 140-154. Retrievedfrom www.ijeais.org/ijamsr
Agbaje, A., Bonjuwon, M. & Abidoye, M. (2017). Impact of accounting and audit; service for small
and medium scale enterprises performance. Osogbo Journal of Management (OJM) 2(2), 21- 43. Agwu, M. and Emeti. C. I. (2014). Issues, challenges and prospects of small scale and mediumenterprises (SMEs) in Port-Harcourt City. European Journal of sustainable Development, 3(1), 101-114. Ezeugwu, C. I. & Negedu, E. (2014). Auditors’ reputation: The impact on compliance withinternational accounting standard by quoted companies. Kuwait Chapter of Arabian Journal
of Business and Management Review, 2(2), 28-37. James, Q. (2020). Bookkeeping practices of small and medium enterprises (SMEs). Higher EducationResearch Journal, 1(2), 46-54. Kari, K. (2020). Entrepreneurs define the meaning of business success. European Journal of
Sustainable Development, 3(1), 121-134. Kaye, M. (2019). Types of Accounting Practices. Bi2fluent.com/about-5345234 types-accounting- practices.html. Retrieved by: Jayne Thomson, LLB, LLM. Muteti, P., Namusonge, U. & Nzomo, A. (2018). The impact of demographic profile on strategichuman resource management practices and its challenges faced by human resource managers
in IT firm, India: Empirical study. International Journal of Economics and Management
Engineering, 9(9), 3214-3223. Ndirangu, N. (2018) Roles of Auditors in Small Business Performance. www.newtimes.co.rw/opinions/role-auditors-small-business-performance. Negoh, E. (2018). The role of bookkeeping on the survival of very small businesses in the Kumbamunicipality. International Journal of Advanced Engineering, Management and Science, 4(10), 54-63. Nsoke, P. U., Okolo, M. N. & Ofoegbu, N. G. (2021). Accounting practices and its effects onthegrowth of micro and small scale enterprises: Analysis from Nigeria. Universal Journal of
Accounting and Finance, 9(4), 574-587. doi: 10.13189/ujaf.2021.090405. Okafor, U. I. & Oji, R. N. (2021). Management accounting practices and performance of small andmedium-scale enterprises in Nigeria. International Journal of Business and Management
Invention, 10(6), 44-58. Retrieved from www.ijbmi.org
Okoli, C. I. & Ezenwafor, J. I. (2015). Managers rating of managerial skills considered necessaryfor
success of SME for curbing social vices in Anambra State. Nigerian Journal of Business
Education, 2 (3), 213-223. Retrieved from http://www.nigjbed.com.ng. Popescu, A. L., Deaconu, A. & Popescu, T. (2014). The impact of gender difference at Romaniansmall and medium enterprises (RSMEs) management level: Analyzed by organizational
citizenship behaviour (OCB) lens’. Procedia Economics and Finance, 8(2), 563–569. Retrieved from http://dx.doi.org/10.1016/S2212-5671(14)00129-4
Saoud, A. (2020). Analysis of financial statements. Al MuthannaUniversity: First Edition. Smile, D. and Ofosu, D. (2014). Marketing technologies and performance of SMEs in Ghana. European Journal of Business and Management, 6(5), 102-111. Retrieved fromwww.iiste.org
Udegbunam, E. O., Uchenu, C. A., Odimmega, C. G. & Macpherson, C. N. (2018). Electronicaccounting a tool for quality management of small and medium scale enterprises (SMEs) inthe 21st century Nigeria. Nigerian Journal of Business Education (NIGJBED), 5(2), 86-95. Retrieved from http://www.nigjbed.com.ng. Umanhonlen, O. F., Umanhonlen, I. R. & Enofe, O. A. (2022). The relevance of accountinginformation practice on small and medium scale enterprise (SMEs) in Nigeria: Atheoretical
appraisal. European Journal of Accounting, Auditing and Finance Research, 11(1), 8-44. doi:
https://doi.org/10.37745/ejaafr.2013/vol11n1844