Accounting Information and Management of SMEs in Ghana
Mohammed Amidu* (University of Ghana Business School, Legon. ), ]oshua Abor** (University of Ghana Business School, Legon. )
Download Article | Published On 01/07/2005


This paper examines the accounting practices of SMEs in Ghana. The study revealed that SMEs in Ghana attach more importance to fmancial information by employing Chartered Accountants and degree holders to handle their accounting information. The study also shows that majority of the firms put in place internal control mechanisms to ensure accurate financial information and the safeguard of their properties. The study identifies three main sources of fmancial information used in the management of small firms: Income statement, Balance Sheet and Cash flow statements. Surprisingly majority of small firms contacted do not prepare cash flow statements and as a result could not indicate whether they have positive or negative cash flow. Majority of the respondents also comply with the provision in the Companies Code 1963, ACT 179 by filing their statutory accounts with the relevant Government agencies. There is weak emphasis on controlling cash and monitoring performance in the context of maintaining relations with the banks as only few submit any form of account to the banks.


Accounting, Information, Management, SMEs, Ghana

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