The importance of record keeping to the growth of small and medium scale enterprises (SMEs) in Zimbabwe

Abstract

This study sought to investigate the influence quality financial reporting systems have on the performance of small and medium enterprises. Descriptive survey design was employed. The sample size was 100 SMEs, selected using stratified random sampling. Data were collected using a questionnaire and an observation list. Data collected using questionnaire were analyzed using Statistical Package for the Social Scientists (SPSS). The study found an absence of formal accounting systems in many firms due to lack of financial and accounting knowledge among the owner-managers. It is recommended that financial institutions and policy makers need to focus on educating such owner-managers with necessary accounting and financial management skills.