This study focused on the performance of Small and Medium Enterprises (SME‟s) to record keeping practices. The case study was carried out on a group of Small and Medium Enterprises (SME‟s) in Nyamagana District of Mwanza City - Tanzania. A total of 98 respondents including Small and Medium Enterprises in trading, manufacturing, and services providers were covered. The objective of the study was to assess the impacts of record keeping practices on the performance of the SME‟s. The results would reveal the reasons as to why, SME‟s can not be able to separate profit and capital that they invest and its impacts to the general performance of the businesses. Then, provides major strategies on how Small and Medium Businesses could be able to apply recording practices for better performance of the businesses. The analyzed data were presented using tables and graphs. The research findings can provide knowledge to owners of SME‟s to use proper bookkeeping so as to improve their performance. It can also be used by academicians, researchers and management consultants as a source of knowledge and references.