Impact of Accounting Records Keeping on the Performance of Nepalese Small-Scale Enterprises

Abstract

This study examines the impact of accounting records keeping on the performance Nepalese small-scale enterprises. Financial performance is the dependent variables. The selected independent variables are cash flow, revenue, cost control, financial decisions and budgeting. The primary source of data is used to assess the opinions of the respondents regarding the impact of accounting records keeping on the performance of Nepalese small-scale enterprises in Nepal. The study is based on primary data with 132 respondents. To achieve the purpose of the study, a structured questionnaire is prepared. Descriptive statistics, Kendall’s Tau correlations, and regression models are estimated to test the significance and importance of impact of accounting records keeping on the performance of Nepalese small-scale enterprises. The study showed that cash flow has a positive impact on financial performance. It implies that an enhanced cash flow leads to increased financial performance of small-medium enterprises. The result also showed that revenue has a positive impact on financial performance of small-medium enterprises. It implies that higher revenue leads to increased financial performance of small-medium enterprises. Moreover, cost control has a positive impact on financial performance of small-medium enterprises. It implies that greater cost control leads to increased financial performance of small-medium enterprises. Furthermore, financial decisions have a positive impact on financial performance of small-medium enterprises indicating that stronger financial decisions lead to increased financial performance. Similarly, the result also showed that budgeting has a positive impact on financial performance of small-medium enterprises. It indicates that increased budgeting leads to increased financial performance.