Impact of Record On Financial Performance of Small and Medium Enterprises in Uganda; A Case of Jibu Bottling Company in Kampala-Uganda

TABLE OF CONTENT

DECLARATION

APPROVAL I

ACKNOWLEDGEMENT lB

DEDICATION iv

LIST OF ACRONYMS v

ABSTRACT vi

TABLE OF CONTENT VU

LIST OF TABLES x

CHAPTER ONE 1

INTRODUCTIONS 1

1.0 Introduction 1

1.1 Background of the Study 1

1.1.1 Historical Background 1

1.1.2 Theoretical Background 2

1.1.3 Conceptual Background 3

1.1.4 Contextual Background 4

1.2 Statement of the problem 4

1.3 General objective of the study S

1.4 Specific objectives of the study S

1.5 Research Questions s

1.6 Scope of the study s

1.6.1 Subject scope s

1.6.2 Geographical scope s

1.6.3 Time scope S

1.7 Significance of the study S

1.8 The Conceptual Framework 6

1.9 Definition of variables 6

1.9.1 Independent Variables 6

1.9.1.1 Record keeping 6

1.9.1.2 General ledger 6

1.9.1.3 Journal 7

1.9.1.4 Cash Book 7

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Chapter FOUR 19PRESENTATION, ANALYSIS AND INTERPRETATION OF FINDINGS 194.0 Introduction 194.2 response rate 194.1 Demographic characteristics 204.1.1 Gender 204.1.2 Age bracket 204.1.3 Education level 214.1.4 Working experience 214.2.1 Cash books and profitability 224.2.2 Effect of a general ledger on growth levels 234.2.3effects of journal entries on market share 234.6 The relationship between records keeping and performance of business enterprises 244.7 Discussion of findings 25CHAPTER FIVE 26DISCUSSION, CONCLUSION AND RECOMMENDATIONS 265.1 Introduction 265.2 Summary of findings 265.2.1 Effects of maintaining cash books and profitability of Jibu Bottling Company in KampalaUganda 265.2.2Effects of maintaining journal entries on market share of Jibu Bottling Company 265.3 Conclusion 275.3.1 Effects of maintaining cash books and profitability of Jibu Bottling Company 275.3.2 Effects of maintaining journal entries on market share of Jibu Bottling Company inKampala-Uganda 275.3.3 Effects of maintaining a general ledger on growth levels of Jibu Bottling Company 275.4 Recommendations 275.5 Area of further study 27REFERENCES 28APPENDIX F 30A RESEARCH QUESTIONNAIRE 30APPENDIX IF 33INTERVIEW GUIDE 33

ONE INTRODUCTION:

1.0 Introduction This chapter consisted of the background of the study, statement of the problem, objectives, scope of the study, significance of the study and the conceptual frame work. 1.1 Background of the Study 1.1.1 Historical Background. Prior to the late 19th century cottage industries mostly small and medium scale business, controlled the economy of European. The industrial revolution changed the status- quo and introduced mass production. The twin oil shocks during the 1 970s undermined the mass production model which trigged an unexpected reappraisal of the role of importance of small and medium size enterprises in the global economy. Findings by economists over the years show that small fins and enterprises play a much more importance role in economic growth and development (if nacho 2002). many economies, developed and developing have come to realize the value of small and medium business. The impact of financial accounting recording on the performance of organizations (small and medium) basically aim at ascertaining how financial accounting reporting has helped in advancing the objectives of organizations. In the process it investigated the effect that financial accounting bear on the performance of business. Furthermore, it’s sought to ascertain the compliance of relevant statues by cooperate organizations and the overall satisfaction of stakeholders in cooperate organizations. Many new business owners are daunted by the mere idea of bookkeeping and accounting. But in reality, both are pretty simple. Keep in mind that bookkeeping and accounting share two basic goals: to keep track of income and expenses, which improves chances of making a profit, and to collect the financial information necessary for filing various tax returns. There is no requirement that records be kept in any particular way. As long as records accurately reflect the business’s income and expenses, there is a requirement, However, that some businesses use a certain method of crediting their accounts: the cash method or accrual method. Depending on the size of the business and amount of sales, one can create own ledgers and reports, or rely on accounting (Williams et al 1999). An accounting system records, retains and reproduces financial information relating to financial transaction flows and financial position. Financial transaction flows encompass primarily inflows on account of incomes and outflows on account of expenses