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Abstract
This research investigates the importance of effective record-keeping practices for Small and Medium-scale Enterprises in Nigeria, specifically in the Ilorin Metropolis. Despite SMEs' significant contributions to the Nigerian economy, many operators struggle with maintaining accurate financial records, which impacts their performance and sustainability. Through a descriptive research design and survey method, data were collected from fifty SME operators, revealing insights into their record-keeping practices, challenges, and perceptions.
The study highlights the importance of record keeping in assessing SME performance, maintaining accountability over assets, and informing strategic decisions. Using the Decision Usefulness Theory as a theoretical framework, the research demonstrates a robust connection between efficient documentation practices and the performance of small and medium-sized businesses. Empirical analysis supports the notion that SMEs with proper record-keeping systems tend to achieve higher levels of profitability, efficiency, and sustainability.
Key findings underscore the need for enhanced awareness, training, and access to resources to improve record-keeping practices among SMEs. Recommendations include collaborative efforts among government agencies, industry associations, and educational institutions to provide training programs, technical assistance, and policy support to encourage SMEs to adopt best practices in record keeping.
In conclusion, the research emphasizes that proper record keeping is essential for SME management and performance measurement. By implementing effective record-keeping systems and leveraging available support mechanisms, SMEs can enhance their financial transparency, operational efficiency, and long-term viability.
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