Abstract
This study is to examine the relevance of accounts department in a small and medium business enterprise (Using some selected SME’s in Etsako West Local Government Area as a case study). In this study, the extent to which the presence of the accounts department is being felt in an organization and the significant role between the accounts department and the management of the organization was looked at. The research also examines the relationship between the accounts department and the various departments of the organization and how their activities are co-ordinated to achieve the overall objective of the organization.
The study also seeks to find out the problems encountered by the accounts department in the course of carrying out their operations and how it can be resolved. Relevant journals, textbooks and related work on the relevance of accounts department in small and medium scale business enterprises written by different authors were consulted. The stratified random sampling technique was used and questionnaires and personal interview were the research tools used in collection of vital information and the method of data analysis adopted was the chi-square method of data analysis. Some of the result from the research was that the accounting personnel are honest in terms of keeping the books of accounts of the organization, the accounts department does not fulfill its obligation of preparing and publishing regular information to third parties, the accounts department assist the organization in carrying out research and development for new improved methods etc.
The following recommendations were also arrived at; regular accounting information should be published and made available to third parties, incentive measures be put in place to compensate workers so as to reduce the issue of fraud in the organization, there should be a good working relationship between the accountant and the management of the organization etc.
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
The word “Account” as defined in Oxford Advanced Dictionary is a written record of money that is owned to a business and of money that has been paid by it.An account department is one of the different divisions into which organizations activities are assigned for effective performance so as to achieve desired objectives.The accountants and the accounting clerks are the account personnel that make up the account department. In most organizations, it has been observed that more often than not, the account department is not appreciated.
The researcher have observed that in the past, companies without reliable accounts department always fold up because they cannot ascertain their revenue and expenditure. The situation is the same whether the business organization is small or often associated with organizations without efficient accounts department.For an organization to be financially operative, all other departments of the organization must be accountable to the accounting department of the organization so as to achieve financial prudence.