RUAHA CATHOLIC UNIVERSITY

This study focused on analysis of deficiencies in financial records management among small and medium enterprises in Tanzania. The researchers performed literature review and a focus group discussion with experts and officials from various organizations concerned with promotion and regulation of SMEs. The study found that only 30% of SMEs under study have adequate skills in financial records management. Furthermore 70% of SMEs entrepreneurs perceive that they cannot afford services of accounting experts, and actually do not use accounting experts rather they do manage their own financial records, prepare accounts and other financial reports despite the fact that they have limited skills in account. Results of survey depict that the majority of SMEs entrepreneurs have positive attitude towards financial records keeping discipline, though they might not be following financial reporting standards or formats. The study also found out that more than 80% of respondent always or often keeps records for key elements of business financial reporting like revenues, expenses, assets and liabilities. The study findings therefore provide sufficient evidence that inadequacy of skills and non-utilization of accounting experts in view that they not affordable and is a major cause for deficiencies in financial records management amongst SMEs in Tanzania. The researchers therefore, recommends that government organs, business development institutions and trainers should facilitate training and consultancy services to active SMEs entrepreneurs in financial records management.

SMEs Financial Management, Financial Record, Skills and Attitude