ROLE OF ACCOUNTING INFORMATION ON SMALL AND MEDIUM SCALE BUSINESS IN NIGERIA
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- NGN 3000
ABSTRACT
The relevance of SME-sub sector in Nigeria’s economy has necessitated the need for empirical investigations into the nature of its financial challenges. This study evaluated the extent accountants can help to ameliorate the financial challenges of SMEs in Nigeria. It made use of questionnaire for collecting data from a sample of 348 selected out of a population of 2688 SMEs in Anambra state of Nigeria. Z-score, Chi-square(X2), T-statistics and F-statistics were utilized in testing the hypotheses. Also, by the technique of Ordinary Least Square (OLS), the researcher estimated the group logit (GLOGIT) model specified in the study. Our analyses revealed that SMEs in Nigeria have poor accounting system. It was also found that SMEs’ access to finance depends largely on the quality of accounting information they can generate. The study recommended that SMEs should access the services of the accountant to be able to establish reliable accounting system. Quality accounting information will enhance SMEs’ financial management as well as accessibility of finances.
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