1.1. STATEMENT OF THE PROBLEM
World wide, an effective accounting system affects business
performance positively, while weak accounting system affects negatively
business performance.
SMEs are enterprises favorable for small entrepreneurs and they
suffer from the following problems:
> Their management conceives them as the family holdings;
> There are limited financial resources to adopt effective
accounting system and its relevant applications in business.
> Lack of updated accounting system and even when it is
updated, its installation and use are not perfect.
> Poor technologies used to the system
> Lack of software necessary to the system,
> Lack of personnel and technicians qualified to use and
operate the system.
All these have lead to the researcher to conduct a study on
accounting system used in small and medium enterprises in Rwanda. After the
assessment of those problems facing the small and medium enterprises in
relation to the uses of accounting system in their day to day operations, the
recommendations will be available for better decisions to be adopted.
1.2. OBJECTIVES OF THE STUDY
The objectives of the study are divided into two parties: general
and specific objectives;
1.2.1. GENERAL OBJECTIVES
The proposed study is designed to provide information on how
effective and weak accounting system affects positively or negatively the
operations of small and medium enterprises in Rwanda.
1.2.2. SPECIFIC OBJECTIVES
· To establish the effective and efficient use of source
documents in bookkeeping.
· To assess if accounting system used in small and
medium businesses in Rwanda specifically in INYANGE INDUSTRY follows the
general accepted accounting principles.
· To study the functioning and major problems of accounting
system in small and medium businesses.
· To examine the quality and qualification of workers
working with the accounting information in inyange industries
· To examine the flow of accounting information in
different levels of management of inyange industries
· To give advices on the better use of accounting system to
enhance performance of SMEs
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