This report presents a descriptive-analytical study on factors causal to insufficient management of financial records by Small and Medium Enterprises (SMEs) that were clients of the CRDB Bank Plc, Mwanza branch. In groundwork of the study, critical literature review was performed and focus group discussions were held with some experts and officials from organizations responsible for promotion, financing, taxation and regulation of SMEs. Questionnaires were administered in a field survey which covered the SMEs entrepreneurs in Mwanza region and were clients of the CRBD Bank Plc, at Mwanza branch. Data were managed and analysed using SPSS. The study established that inadequacy of skills and non-utilization of accounting experts were the main causes for insufficiency in financial records management amongst SMEs. Study results showed that 80% of SMEs entrepreneurs perceive that they could not afford hiring accounting experts and actually did not use their services. The results also showed that on the average 62% of entrepreneurs had positive attitude and actually kept records for revenues, expenses, assets and liabilities of their enterprises, they lack necessary technical skills for book keeping and financial reporting. The study, therefore urge for concerted efforts from SME sector stakeholders i.e. SMEs entrepreneurs, government organs, training institutions, financial institutions and accounting experts to assist entrepreneurs in building capacity through training, consultancy services and motivations towards better financial records management.