RRL 2- review of related literature in research PDF

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The success or failure of any business depends on keeping accurate and timely accounting information to give a clear financial business image (Ankrah et al., 2015)....

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The success or failure of any business depends on keeping accurate and timely accounting information to give a clear financial business image (Ankrah et al., 2015). Ankrah, E., Mensah, C. C. Y., & Ofori-Atta K. (2015). The Relevance of Accounting Information in the Management of Small Scale Businesses in the Yilo Krobo District in Ghana. European Journal of Business and Management, Vol.7, ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online), No.8. https://www.iiste.org/Journals/index.php/EJBM/article/view/20955/21520

According to Ademola et al. (2012), Record keeping has become the foundation on which the totality of modern business depends. This is because without it, it will be impossible to ascertain the level of profitability and the level of business susceptibility to fraud. Record keeping and good record management is also essential for any corporate body to function effectively. Ademola, G. O., Samuel, O. J. & Ifedolapo, O. (2012). The Roles of Record Keeping In the Survival and Growth of Small Scale Enterprises in Ijumu Local Government Area of Kogi State. Global Journal of Management and Business Research, Volume 12, Issue 13, Version 1.0

Proper record keeping provides evidence of how the transactions were handled and substantiates the steps that were taken in order to comply with business standards (Reed, 2010), as cited by Zotorvie (2017). Zotorvie, J. (2017). A study of Financial Accounting Practices of Small and Medium Scale Enterprises (SMEs) in Ho Municipality, Ghana. International Journal of Academic Research in Business and Social Sciences. 7. 10.6007/IJARBSS/v7-i7/3075.

Padachi (2012) also observed that proper system of accounting indicates how well the business is performing and what decisions are necessary to be made in order to keep the business in the market and emphasized the need for businesses to maintain proper books of accounts. Padachi, K. (2012). Why SMEs Ignore Formal Accounting Systems? -Entity Concept Explanation. International Conference on Applied and Management Sciences, 16-17, Bangkok.

According to Warnes (2019), if you’re not keeping track of your records in an organized way, you can’t back up the information reported in your books. According to Warnes (2019), Ecommerce entrepreneurs typically decide to hire a bookkeeper after one of two things happens, first, their business grows and becomes more complex, and it’s no longer workable to handle everything themselves. Second, they make bookkeeping mistakes or start to fall behind, and realize the cost of hiring a bookkeeper is worth it to avoid the QuickBooks rage.

Warnes, B. (2019, January 17). Ecommerce Accounting 101. Bench. Retrieved on June 17, 2021 from https://bench.co/blog/accounting/ecommerce-accounting/ Recording your financial data is the most fundamental part of bookkeeping, but it won’t do you much good if you can’t access and understand your records. Bookkeeping entails correctly categorizing, organizing, and storing your financial transactions to help with taxes and audits and to provide business insights (Novick, 2020). Novick, S. (2020, July 24). The Ecommerce Guide to Bookkeeping. ShipBob. Retrieved on June 17, 2021 from https://www.shipbob.com/blog/ecommerce-guide-bookkeeping/

According to Richard (2021), Bookkeeping will help you forecast your business. Once you know your numbers, you can then create projections that predict your business’s future activity. This will enable you to plan better and work smarter. Cash flow shortages. In addition, without documenting how your business actually works in terms of money going in and out, you won’t be able to determine your income. This can lead to cash flow shortages and payroll problems (Richard, 2021). Richard, W. (2021, May 12). A Detailed Guide to eCommerce Accounting. Bean Ninjas. Retrived on June 17, 2021 from https://beanninjas.com/blog/guide-to-ecommerce-accounting/...