Effect of Book Keeping on Microenterprises Sustainability in Nigeria

Abstract

The main objective of this study is to examine the role of bookkeeping on sustainability of small and medium enterprises in Oyo State, Nigeria. The specific objectives are to: determine the effect of bookkeeping practice on sustainability of microenterprises; ascertain the depth of microenterprises owners’ appreciation of the use of bookkeeping; and examine the constraints of microenterprises on standard bookkeeping records. This study adopted descriptive research design. The sampling techniques employed for this study are stratified and simple random sampling methods. The instrument used for this study was obtained from primary data. The primary data was obtained through properly structured questionnaire. The descriptive statistics of frequency distribution, percentages mean and standard deviation were used to analyze and relate variables which were obtained from the administered questionnaire. Hypotheses were tested using correlation and regression analysis. The study found that there is a significant relationship between bookkeeping and microenterprises sustainability. Also, it was also discovered that bookkeeping practice has significant effect on microenterprises and finally, the study found out that the problem of proper bookkeeping has a positive and significant effect on microenterprises sustainability. The study concludes that bookkeeping would help microenterprises to grow, and hence, results in sustainability through act of proper record keeping of their basic transactions. The study recommends that microenterprises should employ bookkeeper to help monitor the finances of the business while owners are advice that record of the business transactions should be adequate and timely in case of need for financial assistance when financial records are needed.