Abstract:
Record keeping plays a vital role in development by providing recorded information which is
crucial in the strategic formulation of national development policies and plans. The purpose
of the study is to examine the influence of record keeping practices on the business
performance of small and medium scale enterprises in Sri Lanka. Record keeping practices
consists of proper accounting records, preparation of accounting records and accounting
records procedures whereas business performance is measured by organizational goal
achievement, organizational effectiveness and organizational efficiency records. A structured
questionnaire was used to collect the primary data from 75 SMEs which were selected by
means of the random sampling technique. The results reveal that record keeping practices
have significant positive influence on business performance of Small and medium enterprises
in Sri Lanka. It can be recommended that academic institutions and other bodies which are
responsible for SMEs should organize training programmes for those operators who do not
have the technical knowhow in the field of accounting to come to grips with it and also
provide some SME-specific accounting guidelines and template forms for capturing
accounting practices for the operators to use.
