The Relevance of Accounting Information Practice on Small and Medium Scale Enterprise (SMEs) in Nigeria: A Theoretical Appraisal

Abstract

This study theoretically reviewed the relevance of accounting information practice on SMEs in Nigeria. Accounting information is to provide high quality financial reporting. The qualitative characteristic of any accounting information system (AIS) can be maintained relative to ensuring the achievement of its operational goals and performance. This paper adopted library and theoretical literature survey approach and employed quotient research analysis with the use of secondary publications. The study identified SMEs as a catalysts instrument for economic growth and development. It noted that the ineffectiveness of AIS is the bane behind premature collapse of SMEs in Nigeria. The paper observed that proper AIS has enhanced SMEs success and provided requisite information support needed. The paper also noted that AIS has provided the basis for making strategic decision and understanding the accuracy of financial situation of SMEs in Nigeria. It therefore concludes that SMEs have the capacity to turning it fortune through AIS. Hence, studies have showed that financing options require information system that involves objectivity. However, those saddled with the responsibility of mentoring, nurturing as well as revamping SMEs in Nigeria should task them to adopt proper AIS and rescind from encouraging SMEs with credit facilities and other products alike if proper AIS is not maintained.