APPRAISING THE TYPES AND FUNCTION OF ACCOUNTING RECORD MAINTENANCE IN SELECTED SMALL SCALE BUSINESS ORGANIZATIONS IN UYO URBAN

APPRAISING THE TYPES AND FUNCTION OF ACCOUNTING RECORD MAINTENANCE IN SELECTED SMALL SCALE BUSINESS ORGANIZATIONS IN UYO URBAN (A STUDY OF FAVOUR SUPERMARKET UYO)

CHAPTER ONE

INTRODUCTION

• BACKGROUND OF THE STUDY

Small scale business can be defined as business that employs a small number of workers and does not have  a high volume of sale such business are generally privately owned and operated by sole proprietorship, corporations or partnership.    Small scale

business exists in thousands or in many numbers most of these businesses are changing (buying and selling) other existing are long side in large numbers are the servicing type of businesses such  as welling, motor mechanical work, hair dressing, financial institution,  manufacturing the small business, that convert new materials to finished product capable of satisfying the human needs in the society. some of those businesses are owned by a single or group of persons who do not maintain accounting records in conformity with the generally account principles, but depends on their memory for information because of this, the internal revenue services even the inland revenue service finds it difficult to impossible to assess the earnings of the citizens in the areas for tax purpose.

Out gross national product (GNP) might only be a guess work. The business owners and operators  also find it difficult to determine their true gross profit. Their total expense and their true statement of Uyo city polytechnic has to make a study to avoid such mistake that is going on by the small scale business operators.

To enlighten them to add education in their business for a better success, if the result of the study is followed, the small scale business operator would improve also maintaining adequate and accurate accounting records are very important and very helpful in preparing account information required by management. This is necessary for both profit and non-profit making organization.

Many peoples investors and creditors need accounting information to enable them to evaluate the business operation and make sound decision for developing their business in order to achieve the expected profit motive.

According to Oshagbenic (1983:11) one serious problem faced by many business in mismanagement  which is the evidence by the high mortality rate among the business. in experience, incompetence and mismanagement have been identify as cause of failure or majority of small scale business operator, but the source of incompetence and mismanagement remains a mystery. However, one would suggest that ineptitude in accounting system is a prime factor for failure among many enterprises to provide accounting information necessary in the decision making process. it is  surprising  to realize that many enterprises owners and managers do not know if there are operating on a profit or also they can not determine it  the business is making profit and how much the profit is.

Records keeping in a systematic manner would be a solution to the aforementioned problem and will solve other related problem of business. Tate (1982:399) expressed that most owners and managers of business do not understand a balance sheet statement.

A profit and loss account fund flow statement, value added statement and working capital analysis and also accounting concept and convention which are important and useful in practical business mean  very little or nothing for them. for success and long term business survival, owners and managers at all business should be fully enlightened on the important of keeping complete and accurate accounting records and the application of basic monetary and economic principles in their day to day business operation. Even through this research project is limited to small scale business organization  in Uyo urban, it is generally to everybody to tap out knowledge through this research and to make a strong foundation in their business development. through maintaining appropriate accounting records in their establishment for proper decision making process.

• STATEMENT OF THE PROBLEM

In the fact that small scale business organizations are owned by single or group of persons. Some of them maintain accounting records of their business while other do not keep any record at all.

The attempt to make a precise decision on basic of incomplete information couple with explosion on basic of incomplete information couple with explosion or influx of customers being experience organization. for the fact that account are generally handled manually and at the same time incomplete information is what organization management seems to have been use in making most of their decision.

This has resulted  in the problems of information synthesis  and dissemination been prove to accuracy. inefficiency and starvation of  management of vital information for making decision for planning, projection and implementation.

The aid of achievement of the management information system concept, considering the factors presented` so far, it is interesting to find out the important or account  record in organization in small scale business  operators in Uyo urban.

• PURPOSE OF THE STUDY

The purpose of writing these research project are: