The Effect of Financial Accounting Literacy on the Performance of SMEs

The main objective of the study was to examine the effect of financial accounting literacy on the performance of SMEs using saloons and barbering shops at the Dansoman Market as case study. Specifically, the study sought to;

1. Explore the level of financial literacy amongst SMEs in Dansoman Market.
2. Examine the impact of financial literacy on the performance or quality of reports and recording.
3. Identify the benefits of financial literacy amongst SMEs.
4. Identify the disadvantages of financial literacy.

This study adopted a descriptive research design this is because it highlights a characteristic behaviour on one variable because of another variable. The population of the study was all saloons and barbering shops within the Dansoman Market. Fifty (50) saloons and barbering shops were sampled out for the study. The study made use of non-probability sampling specifically convenience sampling. Questionnaires were used as the data collection instrument. The Statistical Package for Social Sciences (SPSS) was used in the analysis of data. Data collected from the respondents was edited and processed.