ஜர்னல் ஆஃப் பிசினஸ் & நிதி விவகாரங்கள்

Accounting Practices of Small and Medium Enterprises in Rangpur, Bangladesh

Abstract

Uddin R, Biswas T, Ali J and Khatun MS

Purpose: The purpose of the study is to examine and evaluate the current status of adopting and implementing the accounting system and practices of Small and Medium Enterprises (SMEs) in Rangpur region as well as to analyze the extent to which accounting information is being used in measuring financial performance by SMEs with limitations.
Approach: This empirical study is based on the primary (face to face interview and interview over the phone using questionnaire) and secondary (Various book, published research papers, websites, statistical report of BBS and annual report of BB) sources of data where total selected sample 30 enterprises out of sample population 66 enterprises. Different statistical tools (hypothesis testing, co-relation analysis and Chi-Square test) are used to analyze and find the result of the study. The designated measures of accounting system are records of document, financial statement, audited financial statement, accounting methods, accounting basis, quality of accounting information and entrepreneur having accounting knowledge.
Findings: The findings of the study reveal that only 20% of enterprises follow the accounting system directly and the other 80% of the enterprises follow the accounting system indirectly. Correlation analysis signposted that among the seven selected independent variables keep accounting records, prepare financial statement, quality information and basis of accounting had significant positive relationships with the accounting system. Null hypothesis is rejected and alternative hypothesis is accepted. So the result showed that SMEs of Rangpur follow accounting system directly or indirectly. The study found that out of 30 enterprises, 10 SMEs enterprises prepared income statement, 14 SMEs prepared cash flow statement and 6 SMEs prepared all statements.
Originality/Value: This paper provides useful information to the concerned authority (Bangladesh Bank, Bangladesh Bureau of Statistics, SME foundation of Bangladesh) as well as other stakeholders including SMEs owners, researchers and accounting practitioners who are directly or indirectly involved in SMEs.