BOOK KEEPING AND ACCOUNTING PRACTICES IN SMALL SCALE ENTERPRISE WITH SPECIAL EMPHASIS ON P.A. WATER, UGHELLI, UGHELLI NORTH LGA OF DELTA STATE

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Every organisation, whether small, medium or big is established to achieve specific target objective. Such objective derived from adequate returns on investment and the ability of the organisation and or, its representatives maximally provide social service that would meet the immediate and long term needs of its environment or community.
In order to actualize set objective, organisation employ adequate and effective accounting records as well as employ the services of available resources (human or non-human) towards actualizing dreams.
Virtually, every organisation and business minded individuals take proper records of it’s activities. This is to enable team measure or ascertain the level of success or failure recorded in the organisation at a specified period of time. Consequent upon this, one may ask, how adequate, accurate and reliable are feese records especially they are not taken by a professional book-keeper or accountant?
Keeping of records is not only required but also vital any organisation. According to Alayide (2009); inadequate records or failure to bring the accounting records up-to-date usually leads to commitment of errors and fraudulent practices. As such, organisation whether in the private or in public sector, really requires the services of a qualified and certificated accountant or book-keeper.
Organisation need to employ the services of professional accountants and or, book-keepers in order to:
Keep all accounting records.
Set up sound accounting records for staff to follow.
Assist them to keep in closing the books of account where there is difficulty and or discrepancy.
Prepare and-of-year account or financial report systems to facilitate clients efficiency in processing management information and controlling of operation.
Write up accounting and administrative procedure manuals.
Ensure adherence to the internal deck system, and so on.
Wanogho (2006) opined that the services of the accountant to organisation and individuals among others includes;
Drafting of financial statement incorporating profit and balance sheet for companies.
Preparation of management account on a regular basis and for whatever period e.g. yearly, quarterly, six monthly, daily etc.