The influence of business records on business performance

Abstract

The necessity of recording all the transactions and systematically cannot be overemphasized. Goods may be sold on credit to several persons. The latter will pay the price of the goods to the vender latter. However, strong one's memory may be, one cannot hope to remember all the details regarding all these transactions. Besides, according to several authorities, accounting records are useful in several ways.

Despite this importance of accounting records, most small enterprises do not maintain proper accounting records moreover the influence of accounting records on business performance has not been well documented.

 This study was therefore conducted with a view to establishing the role played by accounting records on business performance.

 Data was collected among eighty entrepreneurs in the garments industry in Nairobi. Results indicated that there exists a positive relationship between accounting records and business performance. The analysis showed that education, nature of business ownership, training and size of business are the main factors influencing accounting record. Keeping and information for planning making are also extracted from these records. It is recommended that entrepreneurs should be trained in record keeping to enhance the performance of their business.

Key words:  business records, business performance, influence.