The Relevance of Accounting Information Practice on Small and Medium Scale Enterprise (SMEs) in Nigeria: A Theoretical Appraisal (Published)
This study theoretically reviewed the relevance of accounting information practice on SMEs in Nigeria. Accounting information is to provide high quality financial reporting. The qualitative characteristic of any accounting information system (AIS) can be maintained relative to ensuring the achievement of its operational goals and performance. This paper adopted library and theoretical literature survey approach and employed quotient research analysis with the use of secondary publications. The study identified SMEs as a catalysts instrument for economic growth and development. It noted that the ineffectiveness of AIS is the bane behind premature collapse of SMEs in Nigeria. The paper observed that proper AIS has enhanced SMEs success and provided requisite information support needed. The paper also noted that AIS has provided the basis for making strategic decision and understanding the accuracy of financial situation of SMEs in Nigeria. It therefore concludes that SMEs have the capacity to turning it fortune through AIS. Hence, studies have showed that financing options require information system that involves objectivity. However, those saddled with the responsibility of mentoring, nurturing as well as revamping SMEs in Nigeria should task them to adopt proper AIS and rescind from encouraging SMEs with credit facilities and other products alike if proper AIS is not maintained.
Citation: Umanhonlen O.F., Umanhonlen I.R., Enofe, O. A. (2022) The Relevance of Accounting Information Practice on Small and Medium Scale Enterprise (SMEs) in Nigeria: A Theoretical Appraisal, European Journal of Accounting, Auditing and Finance Research, Vol.11, No. 1, pp.8-44
Keywords: Accounting information, SMEs, System, dynamism and flexibility, performance measure, practice, quality financial reporting
Trade Credit Impact on Small and Medium Enterprises in Nigeria (Published)
The connection between trade credit and SMEs cannot be belittled which enable this study to examine the impact of trade credit on small and medium enterprises using Nigeria as a case study. The study employed frequency analysis, logistic regression and correlation analysis as the estimation techniques. The study found that cost of trade credit has a coefficient value of 0.036, standard error of 0.093, with the sig value of 0.701, indicating that cost of trade credit is positively important, but it is not significantly accessible to the SMEs. More so, credit flexibility has the coefficient value of 0.018, standard error of 0.091 with the sig value of 0.846, indicating that credit flexibility has a positive impact but not significant to influence SMEs. The study concluded that cost of trade credit affects SMEs, and credit flexibility has a positive impact on SMEs, while credit grant revealed a positive effect on the performance of SMEs, though government restriction has a negative impact on SMEs but not significant during the study period.
Keywords: Business, Loan, SMEs, and government restriction, trade credit
Review on International Financial Reporting Standards (IFRS) for Small and Medium Entities in Nigeria (Published)
The Nigerian Accounting Standard Board (NASB) provides guidelines on the implementation of national policy on preparation and presentation, recognition and measurement, and disclosure of corporate reporting on financial statement of an entities in Nigeria. International Accounting Standard Board (IASB) provides the framework for IFRS and IAS application on corporate financial reporting. The emerging of IFRS convergences by NASB on SMEs in Nigeria attract urgent attention. This study aims to measure the level of awareness of IFRS guidelines for SMEs operators in Nigeria and preview on the challenges facing the adoption and implementation of the IFRS for small and medium scale entities in Nigeria. This study adopted review approach to address the procedure of adoption of IFRS by SMEs in Nigeria. The study concluded that the awareness, policy and regulation on IFRS for SMEs in Nigeria were very low and the policies for the implementation process were not completely complied
Keywords: IAS and Globalization, IFRS, SMEs
Owners’ Perception on Accounting Information System Adoption: A Case of Small and Medium Enterprises in Nigeria (Published)
Literature has revealed many works on the important of AIS to SMEs, most of the researchers’ result have shown the relevant and the challenging SMEs face in AIS adoption. However, this study bridges the gap, in analyzing the important of AIS adoption to SMEs through the business owners’ perception based on their; competitive strength, longer-term strategic goals and market expansion. This research was carried out in Ilorin, Kwara State. Primary data was used as a source of data. A well-structured questionnaire based on the research questions was used to establish the effect of AIS adoption on competitive strength, longer-term strategic goals and market expansion. 60 SMEs were randomly selected in Ilorin, Kwara State. Regression and correlation analysis was used analyzed the relationship between AIS and competitive strength, longer-term strategic goals and market expansion. The result obtained shows that AIS have a positive correlation with; longer-term strategic goals (.435) which is positively significant at α=0.05, competitive strength (.272) which is positively significant at α=0.01 and market expansion (.322) which is also significant positively at α=0.05. The study concluded that the importance of AIS adoption cannot be over emphasized in any business setup and the study recommendation that: AIS could be adopted by SMEs to improve non-financial performance like longer-term strategic goals, market expansion and competitive strength.
Keywords: Accounting Information System, Competitive Strength, Longer-Term Strategic Goals, Market Expansion, SMEs
Demystifying the Key Taxation Concepts to Improve Compliance by Small and Medium Enterprises in Kenya (Published)
In Kenya, there exist small, medium (SMEs) and large enterprises but SMEs’ have been always regarded as the engines due to their immense contribution to the economy. Many reforms in taxation system in Kenya have been done to ensure that the government collects enough revenue to finance its ever increasing budget. However, taxation is still an uphill task among SMEs thus viewed to be complex and a burden. In this regard therefore, the study was guided by tax compliance theory while assessing the key taxation concepts which will increase compliance among Kenya’s SMEs. Using library research design, the study found out that SMEs in Kenya are in dire need of understanding the principal objective of taxation, taxation approaches, tax crimes and audits. However, the researcher recommends increased taxation sensitization by the main tax authority in Kenya (KRA) given the new reforms made. In addition, there is need to avail more knowledge to Kenya’s SMEs regarding factors affecting their tax compliance.
Keywords: SMEs, Tax Compliance, Tax Crimes, Tax audits, Taxation Approaches
Competitive Strategies on Firm Growth. A Survey of Medium Enterprises in the Manufacturing Sector in Kigali City (Published)
This study entitled “An evaluation of the effect of competitive strategies on firm growth. A survey of medium enterprises in the manufacturing sector in Kigali city” aimed at evaluating competitive strategies within Medium companies and their effect on firm growth. The objectives of the study were to: evaluate the effect of cost leadership strategy practices on Medium companies’ growth, assess the influence of differentiated strategy on firm growth, examine the impact of innovative strategies on the firm growth and establish the relationship between customer service practices and growth of the Medium companies. The study used descriptive survey through correlation design and sampled 57 medium manufacturing companies located in Kigali City province by distributing questionnaires to either their owner or a manger. The data collected was analysed mainly through multiple regression and presented tables and charts. The relationships under investigation were regressed and the Pearson correlation coefficients calculated. The findings showed that Cost leadership affected growth at 62.3%, differentiation at 62.6% and innovation at 33.4%. However the effect of customer service on growth was very weak and not significant. It was recommended that more emphasis be put on improving these strategies by creatively combining them for better results. There is also need to strengthen customer care practices so as to reap from its strength. Suggestions for further studies were forwarded by the author.
Keywords: Competitive Strategies, Cost Leadership, Firm Growth, Innovative Strategy, Leadership Strategy, Manufacturing sector, SMEs
CAPITAL INVESTMENT DECISIONS IN SMALL AND MEDIUM SIZED ENTERPRISES IN TURKEY (Published)
As accepted by economists, Small and Medium Sized Companies (SMEs) are very important for Turkish economy from various points of view. Professional management is becoming very popular in Turkish SMEs and family owned and managed companies began to realize the advantages of institutionalization and professionalization for sustainable growth and achievement. In line with this trend, this study researches how investment decisions are being made in SMEs in Turkey and to get insight as to the level of professionalism and utilization of financial tools and techniques for this purpose. With the objective of exploring how capital investment decisions are made in SMEs in Turkey, a survey was conducted among 65 SMEs located in Istanbul from production, construction and service industries. The main conclusion is that despite awareness on theoretically superior generally accepted evaluation measures, they are not used by the vast majority of the decision makers in the analysis of capital investments in SMEs in Turkey. By analyzing and outlining the As-is situation, this study aims to contribute to increase the awareness level; thus, motivate decision makers to interrogate and challenge the current situation in order to set up appropriate policies and action plans at both macro and micro levels.
Keywords: Capital budgeting, Investment decisions, NPV, Payback, SMEs