The effects of financial reporting on the growth of small & medium enterprises in Tororo municipality: a case study of Nyangole trading centre
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Date
2018-10
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Publisher
Kampala International University, College of Economics and Management
Abstract
The study aimed at finding out the "Effects of Financial Reporting on the Performance and Growth of small and Medium Enterprises in Tororo Municipality: A Case Study of Nyangole Trading Center."
The researcher used a cross-sectional survey to pick out the sample elements and it involved qualitative and quantitative approaches. The researcher used questionnaires, interviews and non-participation observation methods in collecting data.
The data was analyzed using tables and scatter plot graphs.
The findings of the study showed that financial reporting is important to the growth of small and medium enterprises because they help in planning, analyzing business performance, reduction in fraud and provide information for decision making. The kind of financial reports that the small and medium enterprise keep are the balance sheet and income statement.
The small and medium enterprises faced some challenges such as use of the tiresome manual accounting system, inadequate accounting knowledge, lack of transparency, double recording of transactions, among others.
Financial reporting has a number of impacts to small medium enterprises such as helping in planning, reducing risk of losses, provides insights to costs and sales efforts, among others.
Financial reporting has a number of effects on the growth of small and medium enterprises such as reduction in losses, provides insights to \company costs and sales efforts and determining the firm's performance in terms of in- flows and out-flows.
More efforts are needed in advising SMEs owners onto the adoption of mandatory financial reporting.
Description
A Research Report submitted to the College of Economics & Management in partial fulfillment of the requirements for the Award of a Bachelor of Business Administration Degree of Kampala International University
Keywords
Financial reporting, Small & medium enterprises, Tororo Municipality, Nyangole trading centre