Effect of proper bookkeeping on the financial performance of small medium enterprises in embu county, kenya.

Abstract

The goal of this study is to look at how proper bookkeeping affects financial performance of small medium enterprises in Embu County, Kenya. The research proposal was guided by the following research question; how does cashbook affect the performance of small medium enterprises? How does ledger recording and keeping impacts on performance of small medium enterprises? How proper keeping and recording of bank reconciliations affects performance of small medium enterprises. This study targeted a population of 33 SMEs in Embu County. A stratified random sampling technique was used to sample 30 respondents, at 5% margin error, which will represent 67% of the target population using Yamane’s formula. The data was collected by use of open and closed questionnaires, which was analyzed both qualitatively and quantitatively.