The Perception of SMEs Entrepreneurs Towards the Importance of Proper Accounting System

This paper seeks to examine the relationship between Small and Medium Enterprises (SMEs) entrepreneurs' perception 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 through questionnaire. It has been distributed to SMEs based on simple random sampling method. 300 businesses were selected from the total of 3390 business listing in Kuala Lumpur based on SMIDEC website and a few randomly selected companies from Ampang and Cheras areas. Regression analysis has been used to analyze the data. The result of analysis shows that there was significant relation between SMEs entrepreneurs perception on the importance of good accounting system with the level of professional accounting staff recruited. In contrast, no insignificant relationship was recorded with regard to the preparation of final accounts of the company and frequency of meeting with accounting staff