The Impact of Poor Accounting System in Small Scale Industries

The Impact of Poor Accounting System in Small Scale Industries

The Impact of Poor Accounting System in Small Scale Industries

 

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Abstract on The Impact of Poor Accounting System in Small Scale Industries

This work is designed to asses the impact of poor accounting system in small scale industries, its significance, its contributory function in general and narrowly in Nigeria contact. The problem associated with the development of accounting system in small scale industries using Nigeria as an example will also be looked at.

Chapter One of The Impact of Poor Accounting System in Small Scale Industries

INTRODUCTION

BACKGROUND

Man has from time immemorial been struggling indefatigably to find absolute solution to his problems. Among this problems are economic, social, political and cultural economic problem is the most significant.

 The major problem of all societies at all times was succinctly attempted it by fashioning crude tools out of the locally available wood and other materials to increase his productivity to satisfy his basic psychological needs in a large measure.

Universally, economic development of any society is primary based on a solid industrialization programme. This conception has been seriously laid credence by the numerous powers and influence which industrialized nation like U.S.A west Germany, Japan, USSR weld in the space of international  policies and in all other world affairs.

It is disheartening to note that in most developing countries of the world, small scale industries have been very often treated in economic policies, as an inevitable background and lagging sector of the economic to be assisted merely for social reason but not as a valid opportunity for economic development. Consequently, upon this other perception of little attention has been rapid to the tremendous benefits to be derived by elevating existing small firms to attain their maximum capacity to stimulate the establishment of new ones. The argument is not that small scale industries are the ultimate panacea ot national development but rather that development policies and economic planning should be based on a neutral combination of large medium and small firms. The principal economic importance of small scale industries is in their responsiveness to changes and since changes is a prerequisite factor for economic growth, it is highly desirable that more fund rather than few should be channeled to small scale industries.

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Martin O. Ijere, while enumerating the problem of small scale industries made mention of limited finance. This finance being the main resources small scale industries utilize in order to exist, needs to be preserves. In doing this, proper accounting system should be installed so as to make sure that every item or transaction that takes place in the business activities of small scale industries will be accounted for. This will help in the achievement of most of the

 

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