Impact of accounting techniques on small medium enterprises’ performance

Abstract

The objective of this study was to explore the Impact of Accounting Techniques on Small Medium Enterprises Performance. The survey design was appropriate for this study because it allowed investigation of possible relationships between variables as well as data collection from broader category and comparisons between variables. Data for the research has been collected through primary source and that was from questionnaires. That questionnaire was consisting of various questions relevant to the accounting techniques and small medium enterprises performance. And also questionnaire was consisted of five point Likert scaling questions and there were close ended (structured) questions. The study population was Small and Medium Enterprises in Colombo Divisional secretariat in Colombo District. The sample of 100 were selected, and 55 Small Medium Enterprises responded, based on convenient sampling technique. In order to investigate this fact the conceptual frame work was developed to test and finds the relationship between those variables. There were two variable Accounting Techniques (Independent) and Small Medium Enterprise performance (Dependent).and there were six dimensions such as Accounting Techniques, Record of Documents, Preparation of financial Statements, Accounting Methods and Basis, Profitability and Sales Turnover. The data have been checked through statistical software (SPSS) to find the effect of accounting techniques on small and medium enterprises performance. That involved reliability analysis, descriptive statistical techniques, correlation analysis and regression analysis. The findings were presented using Tables and figures. According to the findings of the correlation analysis and regression analysis, there was a weak positive and significant relationship between accounting techniques and small and medium enterprises performance.