Impact of Record Keeping and Management on Financial Performance in Small Andmedium Enterprises in Uganda

Abstract

The study focused on impact of record keeping in relation to small scale enterprises particularly determining the problems faced by those small scale enterprises operating without or with poor record keeping systems. The study was carried out with an aim of establishing the relationship between record keeping and financial performance of small scale enterprises. To obtain the following goals, we set the appropriate objectives that resulted into the research questions. The study seemed significant as portrayed in the findings and the basis for future expounded research. Data was obtained using both primary data and secondary data. It is basically a field based research relying on primary and secondary sources of information. The researcher edited the data collected to ensure that the information received from respondents was accurate and consistent. The researcher analyzed the data using the qualitative and quantitative methods. Findings indicate that the enterprise which lack or with poor record keeping systems have operational control problems reflected on their poor performance. The study also revealed that few of these enterprises operate computerized record keeping systems and manual systems in place are generally inadequate and poor in most cases. Recommendations towards means of improving record keeping systems were suggested and emphasis was particularly laid on developing competencies to enhance the quality of record keeping with specific focus on type, adequacy and updated-ness of records kept.