Contribution of Recording of Accounting Data on The Performance of the Selected Supermarkets in Moshi Municipality, Tanzania
Ephraim Lewis1, Nyanjige Mayala2, Evans Ogoti3
1Ephraim Lewis, Masters Student, Department of Economics and Business Studies, Mwenge Catholic University, Moshi, Kilimanjaro, Tanzania.
2Dr. Nyanjige Mayala, Lecturer, Department of Economics and Business Studies, Mwenge Catholic University, Moshi, Kilimanjaro, Tanzania.
3Prof. Evans Ogoti, Lecturer and Associate Professor, Department of Economics and Business Studies, Mwenge Catholic University, Moshi, Kilimanjaro, Tanzania.
Manuscript received on 06 September 2023 | Revised Manuscript received on 06 October 2023 | Manuscript Accepted on 15 November 2023 | Manuscript published on 30 November 2023 | PP: 44-52 | Volume-3 Issue-2, November 2023 | Retrieval Number: 100.1/ijef.B2555113223 | DOI : 10.54105/ijef.B2555.113223
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Abstract: This study aimed to assess the contribution of recording of accounting data on the performance of selected supermarkets in Moshi Municipality, Tanzania. This study was guided by the Records Continuum Theory (RCT), developed in the 1990s. The study employed a cross-sectional survey using a quantitative approach to assess accounting records in small and medium-sized enterprises (SMEs). It used a population of 150 small and medium-sized businesses, mainly supermarkets, which are registered to operate in the Moshi Municipality area. The sample size consisted of 100 small supermarkets, which was determined using Slovin’s formula. A simple random sampling technique was employed to select respondents, including managers, accountants/cashiers, and storekeepers, using two instruments: an interview schedule and questionnaires. The interview schedule was designed for managers, while the questionnaires were administered to accountants, cashiers, and storekeepers. To ensure the validity of the research instruments, the researcher presented the questionnaires and interview schedule to university experts for scrutiny and suggestions on their validity, relevance, clarity, and suitability of the information contained. To establish the reliability and internal consistency of the research instruments, pilot testing was conducted using Cronbach’s Alpha. The result of the Cronbach’s Alpha test was 0.749, indicating that the tool (questionnaires) was reliable for the study. The study collected only primary data, and the quantitative data generated were analysed using descriptive statistics, which included percentages, frequency counts, mean, and standard deviation. The data were presented using tables. The findings of the study showed that the recording of accounting data contributes to business performance among businesses (supermarkets). Based on the findings, it was concluded that business enterprises, especially supermarkets, perform highly when accounting data is properly recorded, as indicated by the grand mean value of 4.20, which is above the average of 3, and its standard deviation of 0.90. It was therefore recommended that SMEs should practice recording accounting and maintain their financial records simply and consistently, depending on the type of business. The educational background of accountants and storekeepers should be taken into consideration, as the more educated they are, the fewer recording errors they are likely to make, which will help maintain consistent financial performance. Authorities should establish and enforce rules and regulations for all businesses, regardless of size, to keep accurate records of their activities. Through the keeping of records, companies will be able to hold and increase their revenues and, consequently, their profits. This is because the authorities collect their taxes from the earnings of these business enterprises.
Keywords: Accounting, Accounting Practices, Small and Medium Enterprises, Business Performance, and Recording.
Scope of the Article: International and Financial Accounting