The Influence of Accounting Practices on Small and Medium Enterprises

This report investigates the influence of accounting practices on Small and Medium Enterprises (SMEs). It begins by outlining the research problem, which centers on how accounting practices impact SME operations and the benefits SMEs derive from professional accountants. The report formulates specific research questions and hypotheses to guide the study, including the impact of accounting practices on SME operations and cost reduction. The methodology involves a stratified sampling technique, with data collected through questionnaires administered to a sample of respondents. The report also addresses ethical considerations, the importance of accounting practices for financial presentations, and the impact of poor management. The literature review explores existing research on the topic. The report aims to examine how accounting practices influence SME operations and identify the benefits of these practices. The data analysis techniques will involve a quantitative approach. Finally, it includes a list of references used for the research, providing a comprehensive overview of the topic and the research methodology employed.

INFLUENCE OF ACCOUNTING
PRACTICES IN SMALL AND MEDIUM
ENTERPRISES
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 SMEs are the backbone of every business
 Purpose of the research proposed is to determinant how
accounting practices influence operations of SMEs
 Use of stratified sampling technique will be applied as
a way of determining the sample size
 Information will be gathered by well-prepared
questionnaires founded on identified survey questions
Abstract

 SMEs sectors are major contributors to financial
stability of a region
 Despite the importance of SME in different regions
they still fail in their operations
 The failure in operations of SMEs leads to a negative
impact in the operation of a country
Research problem

What is the role of accountant
practices in SME’s?
What kind of benefits, SME’s expect
from professional accountants?
Research question

 First Hypothesis
H0: Accounting practices influence the operations of SMEs.
H1: Accounting practices do not pose any impact on
operations of SMEs.
 Hypothesis 2
H0: Accounting practices influence the cost reduction in
operations of SMEs
H1: Accounting practices do not pose any impact on the
reduction in cost in operations of SMEs
Hypothesis

The study only focused on a
particular number of SMEs
Time constraint limits the process of
conducting research
Delimitations and limitations

 Accounting operations of SMEs do not
necessarily provide financial data required
 The lack of appropriate documentation of
accounting by such enterprise does arise
because of lack of effective knowledge of
accounting
Background

 Regulations are always in written and some are in
unwritten form
 Ethics determine different to do and don't before,
during, and after investigation
 protection of identity will ensure that each and every
participant that wishes to take part in the study are
unworried
Ethical consideration

 Accounting practices are critical element for the
financial presentation of SMEs
 Poor management practices along with accounting
practices are also some of the major factors that hinder
the financial performance of these firms
 Examinations have suggested that a huge number of
SMEs are unsuccessful because of non-economical
purposes
Literature review

 To investigate the manner in which accounting
practices influence operations of SMEs around
different markets
 To examine benefits that the accounting practices have
on activities that relate to operations of SMEs.
Aim or objectives of the research

 Different procedures and techniques that will be utilized in conducting
this survey
 Descriptive case examination in this work will comprise of the
gathering of data through interviewing, observation, or administering
the well-structured questionnaire
 sample dimension of a hundred respondents will be utilized to examine
as well as to attain the specified objectives and question of survey.
 Information will be gathered through questionnaires administration to
identified respondents.
 Data analysis techniques in this research will comprise
of several approaches that comprise of quantitative
approach
Methodology

 Asirah, A. (2018). Analysis Of Accounting Application On Micro
Small And Medium Enterprises. Patria Artha Journal of Accounting
& Financial Reporting, 2(1).
 Glattke, T. (2017). International Research Collaborations: Ethical and
Regulatory Considerations. The ASHA Leader, 12(17), pp.19-21.
 Jervis, M. and Drake, M. (2014). The Use of Qualitative Research
Methods in Quantitative Science: A Review. Journal of Sensory
Studies, 29(4), pp.234-247.
 Mbogo, M. (2017). Influence of Managerial Accounting Skills on
SME’s on the Success and Growth of Small and Medium Enterprises
in Kenya. Journal of Language, Technology & Entrepreneurship in
Africa, 3(1).
List of References