Abstract:
Since 1987 SMEs are being seen as backbone of Sri Lanka and SMEs has been giving huge contribution
to the Sri Lankan government revenue. SMEs contributes much to the employment of Sri Lanka also.
SMEs are influencing major role of Sri Lanka’s Gross Domestic Products, Gross National Products
approximately 45% employment generated by SMEs. SMEs encouraging vast based equitable
development and provide more opportunity for woman and youth participation in the economic
development of the country. However the small businesses entrepreneurial are influenced by the book
keeping systems. Its impact might be positive and negative.The main objectives in doing this research
to study whether the awareness of accounting system has implication on application of book keeping
in the organization. The other purpose of the research conducted to find out level of application of
bookkeeping in small medium enterprises. The statistical results showed a positive relationship
between awareness bookkeeping and application of bookkeeping in SMEs. The research was conducted
in Trincomalee Town and Gravets area and 100 questionnaires were distributed to the SMEs. In this
research the deductive approach has been implemented in order to answer the research questions.
Quantitative data has been collected through questionnaire. The statements used in the questionnaire
are based on knowledge previously studied and theories reviewed through literature. The data collected
through the questionnaire has been analyzed using SPSS. The results of the study showed how the book
keeping influence the small medium enterprises , The book keeping in SMEs and how SMEs are
manipulating the book keeping systems. The knowledge of bookkeeping and tools of bookkeeping
highly determining the application of bookkeeping in small medium enterprises. Furthermore it was
found that the more positive relationship application of bookkeeping with SMEs.
