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1 The Impact of Record Keeping Ademola, Samuel, and Ifedolapo, in 2012 small and medium-sized business owners

overlook the powerful influence of proper
pointed out that record-keeping isn't just
about the records themselves, but also
on the Performance of Selected
objectives (Oladejo, 2008).
about good policies, systems, procedures, record keeping on reaching their business
Small and Medium Enterprises in operations, and person who know how to

Lagos Metropolis manage these records. Consequences of Poor Record Keeping
Najihah Roslan

What’s the point here is the importance of What happens when business owner

accurate financial information for chooses to neglect this aspect? Dawuda and

measuring performance should never be Azeko (2015) suggest that it could lead to
underestimated. This is not just for the mismanagement of resources and poor cash

business owners, but also for government, management - we're talking harsh storms

creditors, potential investors, and... well, without a raincoat or a shelter. The reality
pretty much everyone interested in the is that this has led to the collapse of many

business, frankly. This issue is particularly SMEs. Often missed by the entrepreneur

relevant in places like Nigeria, where SMEs in Nigeria they are unaware of the benefits,

are a significant driver of economic they hastily prepare their records only
development. Just imagine the positive when required for a tax clearance

ripple effect that could happen if more certificate or while applying for bank loans

SMEs put this into practice! (Abayomi & Adejare, 2016).

Did you know that SMEs play a big it inhibits their ability to have an ▪ Business Matters
role, like a really BIG role, in our accurate financial statement and Statement of Problem

economy, both globally and locally? In without accurate statements, securing Adventurers of the business world! You The blurry line between business and
fact, they make up a whopping 75% of a credit facility from banks becomes a personal transactions when your records

the workforce in Europe. However, daunting task. Record keeping is know how climbing a mountain requires a look like a child’s art project. It's
there's a key aspect that's often essential for effective business reliable map to reach the peak, right? paramount to distinguish between your

overlooked by many SMEs. management, and it's not just about Similarly, embarking on a start-up journey
Researchers Agbemava, Ahiase, keeping receipts safe and sound. It needs accurate financial maps too - we call business' money and yours (Van Aardt et

Sedzro, Adade, Bediako, Nyarko, and involves identifying, classifying, and them "accounting records".Keeping track of al. 2008; Rankhamise, 2010).
Kudo, in 2016 found that most SMEs summarizing transactions, storing and your income and expenses is like owning a

don't keep tidy accounting records. safeguarding these records, and compass, guiding you through the forest of
We're talking incomplete records that communicating pertinent information your financial transactions (AbdulRahaman

don't give a true picture of the when necessary. & Adejare, 2014). It's astounding how often
business's financial state. It's simple -

The Impact of Record Keeping on the Performance of
JULY | 2023 Selected Small and Medium Enterprises in Lagos Metropolis 3