IMPACT OF FINANCIAL RECORDS ON THE GROWTH OF SMALL AND MEDIUM SCALE ENTERPRISES IN NORTHERN TARABA

Abstract

Record keeping is an important assets and blood that keeps business alive so that the financial position of any business venture can be ascertained at any point in time. The objective of this paper was to look at the impact of financial records on the growth of SMEs in Northern Taraba State. Primary data were collected from 95 SMEs using a structured questionnaire. The data collected were analyzed using descriptive statistics and regression analysis to test the formulated hypotheses at 5% probability levels. It was agreed that cash records, inventory records and assets records impact positively to the growth of SMEs among respondents. The regression results revealed that 77% variations in the dependent variables are jointly explained by cash records, inventory records and assets records. It is therefore recommended that SMEs should keep their financial records simple and consistent, employ experts in the field of accounting to guide and help reduce errors in books of original entries and sensitization of the SMEs on the needs to maintain constant financial records proffered.