DO BETTER RECORDS MEAN BETTER RETURNS: EXAMINING THE IMPACT OF RECORD-KEEPING PRACTICES ON SME PERFORMANCE
DOI:
https://doi.org/10.61421/IJSSMER.2026.4403Keywords:
Record-Keeping Practices, SMEs, Financial Performance, Auditability, Return on Assets, OmanAbstract
This study examines the influence of record-keeping practices on the financial performance of SMEs in Nizwa, Oman, focusing on Accuracy, Completeness, Timeliness, Security and Data Protection, Compliance with Regulatory Standards, Use of Technology, and Auditability. A quantitative descriptive survey was conducted among 173 SMEs using a researcher-developed questionnaire validated through expert review and pilot testing. Data were analyzed using descriptive statistics, reliability analysis, correlation, and multiple regression. The findings indicate that SMEs exhibit strong traditional record-keeping practices, although technology adoption remains limited. Overall, record-keeping practices significantly influence financial performance. Among the dimensions examined, Auditability showed a significant positive effect on Return on Assets (ROA). The study was limited to SMEs in Nizwa and relied on cross-sectional, self-reported data. The findings suggest that strengthening auditability and promoting digital record-keeping can enhance SME performance. This study provides context-specific evidence on record-keeping practices and SME performance in Oman.
Downloads
References
Abdul-Rahamon, O. A., & Adejare, A. T. (2014). The analysis of the impact of accounting records keeping on the performance of the small scale enterprises. International Journal of Academic Research in Business and Social Sciences, 4(1), 1-17.
Akesinro, S. A., & Adetoso, J. A. (2016). The imperatives of accounting and financial records in the development of small scale enterprises in Nigeria. Research Journal of Finance and Accounting, 7(14), 43-42.
Al‐Hattami, H. M., Battour, M., & Al‐Bukhrani, M. A. (2025). Digital accounting systems in SMEs: Do they influence marketing performance? A moderated mediation analysis. Strategic Change, 34(5), 747-758.
Al-Zakwani, H. M., & Mondal, S. K. (2019). Small and Medium Enterprises in Oman: Challenges and Opportunities. International Journal of Social Science and Economic Research, 3-15.
Amissah, H. H. (2011). Proper bookkeeping and basic accounting procedures in small scale enterprises (Doctoral dissertation).
Amosah, J., Lukman, T., & Seidu, K. S. K. (2023). Record Keeping and its Effects on the Development of Small-Scale Enterprises in the Sissala West District in the Upper West Region of Ghana. American Journal of Economics and Business Innovation, 2(2), 24-34.
Anderson, D. R., Sweeney, D. J., Williams, T. A., Camm, J. D., & Cochran, J. J. (2018). An introduction to management science: quantitative approach. Cengage learning.
Balagobei, S.(2019). Impact of Record Keeping Practices on Business Performance of Small and Medium Scale Enterprises in Sri Lanka. International Journal of Accounting and Financial Reporting, 9(4), 439-451.
Bowen, M., Morara, M., & Mureithi, S. (2009). Management challenges among small and micro enterprises in Nairobi-Kenya. KCA journal of management, 2(1).
Cooper, D. R., & Schindler, P. S. (2003). Business Research Methods (8th edition). USA: McGraw-Hill.
Cronbach, L. J. (1951). Coefficient alpha and the internal structure of tests. psychometrika, 16(3), 297-334.
Eke, R. I., Nwonu, C. U., & Obayagbonna, E. O. (2023). Impact of Accounting Records on the Growth of Small and Medium Scale Enterprises. British International Journal of Applied Economics, Finance and Accounting, 7(1), 32-48.
Evans, C., Carlon, S., & Massey, D. (2005). Record keeping practices and tax compliance of SMEs. eJTR, 3, 288.
George, D., & Mallery, M. (2003). Using SPSS for Windows step by step: a simple guide and reference.
Hair Jr, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2010). Multivariate data analysis. In Multivariate data analysis (pp. 785-785).
Hajjar, S. T. (2018). Statistical analysis: Internal-consistency reliability and construct validity. International Journal of Quantitative and Qualitative Research Methods, 6(1), 27-38.
Hassan, H., & Maelah, R. (2023). Management Accounting Information Usefulness, Digital Inclusion and Performance of SMEs. In International Conference on Business and Technology (pp. 125-143). Springer, Cham.
Hossain, M. Z. (2025). Adoption of cloud accounting systems in SMEs. Journal of SUB, 15(1), 1-10.
Idewele, I. (2019). Accounting Records and the Performance of Small and Medium Scale Industries (A Case of Karu LGA of Nasarawa State).
James, G., Witten, D., Hastie, T., & Tibshirani, R. (2021). An introduction to statistical learning: with applications in R (Vol. 2). New York: springer.
Kallmuenzer, A., Mikhaylov, A., Chelaru, M., & Czakon, W. (2025). Adoption and performance outcome of digitalization in small and medium-sized enterprises. Review of Managerial Science, 19(7), 2011-2038.
Konting, M. M., Kamaruddin, N. & Man, N. A. (2009). Quality assurance in higher education institutions: Exit survey among Universiti Putra Malaysia graduating students. International Education Studies, 2(1).
Krejcie, R. V., & Morgan, D. W. (1970). Determining sample size for research activities. Educational and psychological measurement, 30(3), 607-610.
Lewis, P. (2015). Compliance costs of regulation for small business. Journal of Business Systems, Governance & Ethics.
Longenecker, J. G., Moore, C. W., Petty, J. W., Palich, L. E., & McKinney, J. A. (2006). Ethical attitudes in small businesses and large corporations: Theory and empirical findings from a tracking study spanning three decades. Journal of Small Business Management, 44(2), 167-183.
Mairura, C. J. (2011). The influence of business records on business performance. Journal of Language, Technology & Entrepreneurship in Africa, 3(1), 133-143.
Malauri, B., Mpogole, H., & Wiketye, E. (2021). Financial Record Keeping Practices in Micro and Small Businesses in Tanzania. SEDME (Small Enterprises Development, Management & Extension Journal), 48(3), 285–298.
Mehari, D., & Shaik, A. M. (2017). A Study on Accounting Practice and Financial Reporting in SMEs in Case of Arba Minch Town, Snnpr, Ethiopia. Research on Humanities and Social Sciences, 7(19), 15-22.
Mwebesa, L. C. K., Kansiime, C., Asiimwe, B. B., Mugambe, P., & Rwego, I. B. (2018). The effect of financial record keeping on financial performance of development groups in rural areas of Western Uganda.
Nooney, L. K., Al Abri, J. Y., Al Shereiqi, R. M., Al Haji, A. A., Ali Al-Busaidi, N. M., & Al Kharusi, H. A. (2024). The Benefits and Challenges of Record Keeping Among SME In Nizwa. Journal of Commerce & Accounting Research, 13(4).
Olatunji, T. E. (2013). The impact of accounting system on the performance of small and medium scale enterprises in Nigeria–a survey of SMEs in Oyo State–Nigeria. International journal of business and management invention, 2(9), 13-17.
Otuo, I. S., Asare, E., Akyea, S., Akanyinapo, K. M., & Acquah, A. (2019). Assessment of Financial Records Keeping Behaviour of Small Scale Businesses In Kumasi: A Case Study of Adum (Doctoral dissertation).
Roopa, S., & Rani, M. S. (2012). Questionnaire designing for a survey. Journal of Indian Orthodontic Society, 46(4_suppl1), 273-277.
Sauders, M. Lewis, P. &Thornhills, A. (2007). Research Methods for Business Students, (4th Ed.) London Pitman.
Saumure, K., & Given Lisa M. (2008). Convenience Sample. In The SAGE Encyclopedia of Qualitative Research Methods. Thousand Oaks, CA: Sage.
Sommers, P., & Cole, R. J. (1981). Costs of Compliance in Small and Medium-Sized Businesses1. American Journal of Small Business, 6(1), 25-33.
Sooriyakumaran, L. (2020). Maintaining accounting records and profitability of SMEs: Evidence from Jaffna District in Sri Lanka. IJESC International Journal of Engineering Science and Computing, 10.
Taherdoost, H. (2019). What is the best response scale for survey and questionnaire design; review of different lengths of rating scale/attitude scale/Likert scale. Hamed Taherdoost, 1-10.
Tawfik, O. I., Durrah, O., Hussainey, K., & Elmaasrawy, H. E. (2023). Factors influencing the implementation of cloud accounting: Evidence from small and medium enterprises in Oman. Journal of Science and Technology Policy Management, 14(5), 859-884.
Zainodin, S. D., Azman, S., Raimee, N., & Fuzi, N. M. (2024). Examining key factors of AIS technology adoption in the digital economy era: Insights from SMEs. International Journal of Academic Research in Business and Social Sciences, 14(12), 1-12.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Lenin Kumar Nooney
This work is licensed under a Creative Commons Attribution 4.0 International License.
