TITLE:
Accounting Systems for Records Keeping Practices for Small Enterprise Development in Makueni County, Kenya
AUTHORS:
Nicodemus Muteti, Mary Namusonge, David Nzomo
KEYWORDS:
Accounting Systems, Enterprise Development, Small Enterprises, Records Keeping, Challenges
JOURNAL NAME:
Open Journal of Accounting,
Vol.7 No.3,
July
31,
2018
ABSTRACT: Small enterprise development strategy is used by governments worldwide
for economic development, wealth creation and poverty reduction. The
government of Kenya vision 2030 of being a medium income economy is
anchored on an ambitious economic development blueprint through economic,
social and political pillars. While small enterprises are taunted as
part of the catalysts for rapid development, by their nature small enterprises
face a myriad of challenges in the collection of financial information
through accounting system which is used in business decision making. The
study considered the challenges faced by the enterprises in record keeping,
the type of accounting systems they use and the role of accounting systems
in enterprise development in Makueni County, Kenya. Data for the study
was collected from 250 small enterprises through semi-structured questionnaires
and analysed using descriptive and inferential statistics. Small enterprises
prefer maintaining manual records of accounting systems for recording
purchases, sales and expenses. The challenges small enterprises
faced were lack of competent clerical staff, time constraints and lack of
knowledge on record keeping. A significant linear relationship is evident between
accounting systems and enterprise development in Makueni County of
Kenya. There is need for the government and other stake holders to intervene
in capacity building of small enterprises on accounting practices as a pillar to
the development and sustainability of small enterprises in Kenya.