Abstract

This paper examines the relationship between small- and medium-sized enterprises’ (SMEs) entrepreneurs’ perceptions towards a proper accounting system with the level of accounting staff recruited, preparation of final accounts, meetings with accounting staff, and entrepreneurs’ ranking of accounting according to their priority.

The methodology used to gather the data is survey questionnaire. It has been distributed to SMEs based on simple random sampling method. Three hundred businesses were selected from the total of 3,390 businesses listed in Kuala Lumpur, Malaysia area obtained from Small and Medium Industries Development Corporation (SMIDEC) website and a few random selected from Ampang and Cheras areas. Regression analysis has been used to analyze the data.

The results of the study reveal that there was a significant relation between SMEs entrepreneurs’ perceptions on the importance of a good accounting system and the level of professional accounting staff recruited. Furthermore, findings of this study also found that there was an insignificant relationship between SMEs entrepreneurs’ perceptions on the importance of a good accounting system and preparation of final accounts of the company and frequency of meetings with accounting staff.

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