A Dissertation Submitted in Partial Fulfilment of the Requirements for Award
of the Degree of Masters of Science in Accounting and Finance (Msc A&F) of
Mzumbe University
This research has been conducted at Dar es Salaam region to investigate the impact
of accounting records on Small and Medium Enterprises (SMEs) performance in
Tanzania. Most SMEs do not progress well due to various constraints, one of them
being poor accounting records. Accurate accounting records enable the business to
manage its finances and make good financial decisions which in turn improves the
performance of the business.
Data were collected through interview, questionnaires as well as reviewing other
secondary sources including reports, memos and charters. Findings were processed
through SPSS data analysis programme for their interpretation and analysis so as to
answer four specific research questions: (i) the challenges SME face in preparation
of accounting records, (ii) SME awareness towards accounts record keeping
procedures and recording ways in use, (iii) successfulness of record keeping and (iv)
the support from private and public organizations on influencing the use of
accounting records to the SME sector.
The findings show that most of SMEs do not keep accounting records. Some of the
reasons as to why they do not keep accounting records were: time consuming, lack of
knowledge and skills, poor documentation, ignorance and poor support from the
workers responsible with records in the organizations. The research data were
collected through questionnaire, documentation, observations and interviews.
The study recommend for the SMEs to attend entrepreneurship seminars and short
courses whereby they will be able to gain knowledge on accounts record keeping.
Public and private organizations should increase effort on SME sector, especially in
educating members how to improve their business in case of performance which
requires good accounting records.