| dc.description.abstract | The main objective of this Project is to assess
the nature of services that the Kenyan practicing
accountant extends to his small business clients,
and establish whether the services need improvement. .
The need for improvement is assessed through trying
to establish whether there is a difference between
what small scale businessmen need in areas relating
to proper financial management for their businesses
and what they get from their external accountants in
form of accounting services. The main thrust of the
study is towards establishing whether there is a
difference that could lead to the suffering of the
image of the accounting profession in Kenya.
Three main groups of respondents are involved
in the study viz: accounting firms, small scale
businesses(traders and industrialists), and three
organizations having close relationships with small
business. The three organizations are the Kenya
Industrial Estates Ltd., the Industrial and Commercial
Development Corporation and the Kenya National
Chamber of Commerce and Industry.
Personal interviews were conducted with businessmen,
in an attempt to assess the nature of services they
receive from accounting .firms, businessmen's weaknesses
in using information contained in their accounts and
weaknesses in maintaining proper records for their
businesses. Questions relating to services that are
available from accounting h.l'ms were directed to the
businessmen and accountants, basically to obtain a
picture of what among the services listed small businessmen
receive or seek from their accountants. The
three organizations were asked for views on various issues relating
to weaknesses of small businessmen in management, their needs, and
the nature of services small businessmen receive from accounting firms.
Almost all registered Kenyan Small Scale businesses have
established relationships with accounting firms. Small Scale businessmen
engage accounting firms mainly to prepare annual accounts and
handle tax returns. Accounts prepared are not really directed towards
providing information vital for improved management, but mainly to
support tax returns. Poor financial management exists in many of
these Small Scale businesses. At present, there seems to be no
evidence to suggest that the Kenyan Practicing accountant shares
a significant blame for the poor financial management in small
business. Results suggest that the blame is almost entirely on the
businessmen, and the accounting professions' image appears to be
clean. However, it seems that potential exists for extension of
extra services to Small business by accounting firms especially
in areas relating to Management Services. The accountants should
also be prepared for more scrutiny into the services they render
to the more educated and vibrant future Small business Community.
The project is in five parts. The first part contains an
introduction to the study, objective of the study and need for the
study. The second part provides a theoretical framework, concentrates
on a review of distinguishing features between big and Small business,
which give rise to the special problems facing small business, and
the kind of services that are available from accounting firms and
are essential for proper management. Details on the research
methodology appear in the third part, and results presented under
three subheadings in the fourth part. Tables containing the
data that support the results, and the questionnaires used in the
survey are appended at the end of the study. The study is summarized
and concluded in the fifth and final part. | en |
