Financial Reporting on the Perfomance of Small and Medium Enterprises in Rubaga Division Kampala Road: A Case Study at J&L Company Rubaga Road

Abstract

The study sought to access the effects of financial reports on the performance of small and medium sized enterprises Uganda and establishing the relationship between quality of financial information, inventory management and financial performance of SMEs in Kampala This study is to be guided by specific objectives such as to establish the level of performance of SMEs, to establish the challenges associated with keeping the financial records in SMEs, to establish the relationship between financial records and performance. . The researcher adopted a blend of cross-sectional and descriptive research designs and a stratified random sampling of SMEs in Kampala. A research questionnaire that addressed quality attributes of financial information was to test and inventory management for validity and reliability and this was administered to collect primary data. Secondary data on financial performance was collected from SMEs in Kampala a case study at j&l company ltd. It was discovered that there was significant relationship between quality of financial information and a significant positive relationship between inventory management and financial performance in SMEs. The effect of quality of financial information, inventory management to financial performance . The findings therefore should show the effect of financial reports on the performance of small and medium sized enterprises

The study recommends that that SMEs managers.. Proprietors and directors should develop and adopt usage of accounting information in their transaction so as to have coordinated business planning to eliminate duplication and double purchasing. This can be done by initiating a system that details stock at hand and the quantity requested per the time a purchase has to be done. The study also recommends that SMEs should establish an informed basis to reach an appropriate safety stock to be kept in inventory at any one given time. This can be arrived at instituting dependable accounting hardware. The study further recommends that that SMEs should have a streamlined and clear system of account information record keeping that facilitate reconciliation of all firm transactions throughout the accounting system tenure. This can be achieved by updating accounting systems in place and training personnel