International Journal of Education and Research Vol. 7 No.

3 March 2019

RECORDS KEEPING OF SMALL AND MEDIUM – SCALE ENTERPRISES PRACTICES

IN GHANA AND PHILIPPINES: BASIS FOR AN ENHANCED TAX REFORM SYSTEM

Umar Abdulai PhD student,

Lyceum of the Philippines University
The Claro M. Recto Academy of Advance
Studies Graduate School

Abstract

The objectives of the study on records keeping of small and medium-scale enterprises practices in
Ghana and Philippines are as follows: Determine the current status of the small and medium- scales
industries in Ghana and the Philippines. Evaluate the extent of implementation of the current status
of small and medium-scale industries in Ghana compare with the Philippines. Identify the problems
and challenges encountered by the small and medium-scale in Ghana compared with the
Philippines. Identify the SWOT Analysis of SMEs in Ghana compared with the Philippines. Make
recommendations by which to improve the identified challenges on SMEs.The study focused on the
records keeping of small and medium –scale enterprises in Ghana, Africa and the Philippines as
basis to enhance tax reform system and the issues and concerns encountered in the SMEs industry.
The study utilized the descriptive method of research. The qualitative research was based on the
research philosophy of naturalist-constructionist and the research tools and design, the standards,
and criteria were according to these assumptions. Majority of the Ghana’s respondents are between
36- 40 years old, male, have finished their high school and rendered service from 5 – 10years, while
Philippines respondents have 41- 45 years old, female, have finished their post graduate and
rendered services from 11 – 15 years. It was revealed effectiveness under Ghana was less
moderately implemented which is an indication that effectiveness is not implemented, meanwhile
effectiveness under Philippines was moderately implemented which means it is fairly implemented.
Also, efficiency under Ghana was less moderately implemented which implies that efficiency is low
implemented while under the Philippines efficiency was fully implemented indicated that efficiency
is good implemented.

Key Words: records keeping, small and medium – scale enterprises, tax reform system, Ghana and
Philippines.

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Introduction the Act. Any such application shall be processed

within fifteen (15) working days upon
Small and Medium Enterprises (SMEs) submission of complete documents. Otherwise,
play a pivotal role in contributing to economic the BMBEs shall be deemed registered. The
growth in Ghana the economy is made up of Municipal or City Mayor may appoint a BMBE
very small individual businesses, small and Registration Officer who shall be under the
medium scale enterprises (SMEs), corporate Office of the Treasurer. Local government units
bodies and multinational companies. They (LGUs) are encouraged to establish a One-Stop-
together form the medium through which the Business Registration Center to handle the
economy transacts business activity and grows. efficient registration and processing of
The government agenda to make the private permits/licenses of BMBEs. Likewise, LGUs
sector the engine of growth is mainly driven by shall make a periodic evaluation of the BMBEs’
the SME sector. The SME sector contributes financial status for monitoring and reporting
over 70% of the country’s GDP according to purposes.
Villars (2004). SMEs have over the years been SMEs influence trade. SMEs brought
very significant to the economic development of about 30% of the total export value in Asia on
most developing countries, especially Ghana. It average in 2007–2012. In the People’s Republic
is a major form of business and a major of China (PRC), SMEs accounted for 41.5% of
employer making strong positive impact on the total export value in 2012, up 6.8% year-on-
economic growth and GDP in Ghana World year, while in Thailand they made up 28.8% of
Bank (2012), estimates that, there are total export value with 3.7% year-on-year
approximately 2.7 million enterprises in the growth. SMEs that are part of the global supply
country. A large chain have the potential to promote international
According to Yoshino and Taghizadeh- trade and mobilize domestic demand (ADB
Hesary (2016) Asia has been continuously 2014).
growing during the recent decades, and this While recognizing the potential roles of
growth has alleviated poverty and increased the SMEs, the ability of SMEs in playing these key
number of middle-income countries in the roles depends largely on how they perform in
region. However, the recent regional and global the business (Musah & Muazu, 2014). There are
economic slowdown requires a new growth number of factors influencing the performances
model for Asia, with strengthened dynamics for of SMEs including legal and regulatory
small and medium-sized enterprises (SMEs) to framework, infrastructure, business
boost national productivity. SMEs are the development services, limited access of SMEs
backbone of the economies of Asia, accounting to finance, effective and poorly coordinated
for 98% of all enterprises and 66% of the institutional support framework, record keeping
national labor force on average during 2007– etc. (URT,2003). However, the focal point of
2012. SMEs contributed 38% of the gross this research would be concerned with SMEs’
domestic product or manufacturing value-added deficiencies in record keeping in relation to
in Asia on average in 2007–2012, suggesting modern taxation.
their contribution to the region’s economies can It is importance therefore to recognize
be expanded further. the strong influence of business record keeping
Moreover, a discussion paper by Aldaba attached to SMEs’ performances and
(2014) revealed that, the Office of the Treasurer development, the importance of record keeping
of each city or municipality shall register the cannot be undermined in any means. Record
BMBEs and issue a Certificate of Authority to keeping involves the capturing, maintaining and
enable the BMBE to avail of the benefits under provision of authentic and ready-available
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 International Journal of Education and Research Vol. 7 No. 3 March 2019

records of business activities. There are measurement. Cooley (1983) emphasized that
different reasons for maintaining records and reported profits reflect changes in wealth of
these vary from business to business. As ASA business owners.
and RIM (2011) argued that the primary motive Maseko (2011), stipulate that Micro and
for keeping records is at least to provide ample Small business recordkeeping is the backbone of
evidence of and information about business one’s business. Keeping accurate accounting
activities. Thus the existence of records records is actually creates a profitable business.
underpins all decisions and actions of business Germain (2010) finds that most business
and social accountability as well as providing a operators especially those in SME’s perceive
back-up. In line with this, Obura (2012) noted record keeping as a method of recovering initial
that, the realization of the significant roles investment in the form of cash at the end of the
played by small and medium enterprises (SMEs) accounting period. If SMEs are not maintained
in economic development and the crucial values proper accounting records long term
attached to efficient and effective records and sustainability of the business is under question.
information management in decision making. In Furthermore Howard (2009) emphasized
the same mind, Hughes (2003) asserted that, that many small businesses failed to keep
keeping business records is an important driver adequate records. This leads to major problems
for the success of a business and argues that a and quite possibly the closing of the business.
comprehensive record or book keeping system Evidence shows that keeping good records helps
enables business owners to develop accurate and to increase the chances of business survival. In
timely financial reports that detail the progress essence, the ME’s owners or manager should be
and prospects of the business. personally involved in record keeping (Sian,
Mover over another study in Tanzania 2006). Proper record keeping ensures long term
revealed 68% respondent agreed that records sustainability of the business and anticipates
keeping could help to minimize tax burden, 32% long term prospects. (Ismail, 2005) concluded
of respondent had opposite opinion. The study that the development of a sound accounting
through interview revealed confirms also that information in SME’s depends on the owners’
some of SMEs owner they are disinterested on level of accounting knowledge. Research has
keeping proper record because of fear towards shown that majority of the SME’s owners do not
tax assessment one of respondent claimed have the adequate accounting knowledge and
“Keeping business record reveal all truth about therefore a few capable owners use professional
the revenues hence tax burden can be imposed firms to account for their business (Keasy,
to you than some who does not keep record”. 1990).
This finding suggest that SMEs owners avoid In any democratic society taxpayers
keeping record as strategy of hedging tax citizens will have a number of basic rights as
burden, many fears that if the follow proper well as obligations in relation to their
standard of record keeping there likely to be Government and its agencies. Revenue
categorized as like larger business hence pay authorities are no exception and most countries
more tax ( Danford, John, & Lazaro, 2014). have legislation governing taxpayer’s rights and
Accounting for income and expenditure obligations in relation to taxation (OECD,
is the first essential step of accounting which is 2003).
a system to provide a source of information to According to Onaolapo (2014)
owners and all other interested parties. The accounting records provide a basis for complete
importance of financial performance and accurate income tax computation, a basis
measurement to any business entity cannot be for sound planning for the future and basis for
over-emphasized. In this sense, the accounting discussion with partners, potential investors, and
bases, concepts and principles adopted ought to lenders all these are important aspects which
capture and report all the relevant accounting enhance performance of the business. Business
information to ensure reliability in its also depends on correct accounting records to
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make good decisions about the firm. Decision phenomenology was developed by Edmund
such as expansion, drop or maintain decisions of Husserl and preceded Martin Heidegger’s
product lines make or buy decisions, about size interpretive or hermeneutic phenomenology
of debtors. Therefore if proper records are kept historically. Hermeneutic phenomenology
they will facilitate efficient, proper timely interprets text or language by a researcher and is
decision making and enhance performance in used as methodology or enhancement of
small scale industry. A well maintained record phenomeno- logy (Sloan & Bowe, 2014). This
keeping system ensures that you are able to keep study used transcendental phenomenology as
up with tax reporting requirements. For the research methodology.
example, if you are an individual small business The qualitative research was based on
owner or contractor, then you are generally the research philosophy of naturalist-
considered self-employed. Self-employed constructionist and the research tools and
owners file a personal income tax return design, the standards, and criteria were
annually and pay estimated tax quarterly, (FDIE according to these assumptions.
2016). However taxpayer also have some rights
and this includes imply basic obligations. There Population and Sampling Technique
is a set of behavioral norms expected of
taxpayers by Governments. These expected The participants study comprised of
behaviors are so fundamental to the successful management and employees of selected
operation of taxation systems that they are legal business in Ghana and the Philippines.
requirements in many, if not most, countries. The studies focused on the records
Without this balance of taxpayers’ rights and keeping of small and medium - scale enterprises
obligations taxation systems could not function practices in Ghana and Philippines and the
effectively and efficiently. These taxpayer problems encountered in the SMEs industry.
obligations are the obligation to be honest, the The study utilized the descriptive method of
obligation to be co-operative, and the obligation research.
to provide accurate information and documents For the purpose of gathering data, the
on time, the obligation to keep records the researcher used the questionnaire as the main
obligation to pay taxes on time (OECD, 2003). instrument. The questions were aligned to the
In Ghana a study done by Amoako, problems and objectives as presented in Chapter
Emmanuel, Marfo, Gyabaah & Gyamfi (2014) which focus on the current status and issues and
on SMEs revealed that a lot of importance is challenges encountered in the industry in Ghana
attached to proper accounting records keeping. and the Philippines.
In consistent with previous findings, the
research showed that in spite of the numerous Data Gathering Techniques and Procedures
benefits that can be derived from formal
accounting practices, most SMEs do not keep The study was conducted through focus
proper accounting records hence the need for group discussion, interview, and documents
owners/managers to keep proper set of accounts. analysis in order to ascertain the current status
of the industry. The researcher conducted
Method survey and interview to ascertain its
Research Design development and the issues and concerns
The study focused on the records encountered particularly on the government and
keeping of small and medium –scale enterprises in the community. The researcher analyzed the
in Ghana, Africa and the Philippines as basis to documents gathered that are pertinent to the
enhance tax reform system and the issues and study, particularly on business focus and tax
concerns encountered in the SMEs industry. system.
The study utilized the descriptive method of Data gathered from the survey and the
research; the descriptive or transcendental questionnaire were directly extracted and
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encoded. Appropriate statistical tool were Improper Record keeping in Small Scale and
applied for the document gathered. Medium Enterprises
Transcriptions from the focus group discussion Many new business owners are daunted
or interview with the key informants were by the mere idea of bookkeeping and
summarized. Tables were presented pertaining accounting. But in reality, both are pretty
to the data on the small and medium –scale simple. Keep in mind those bookkeeping and
enterprises industry practices in Ghana and accounting share two basic goals: to keep track
Philippine. The data gathered were recorded, of income and expenses, which improves
tabulated, and analyzed by means of the chances of making a profit, and to collect the
following statistical measures: financial information necessary for filing
various tax returns. There is no requirement that
Research Design records be kept in any particular way. As long
as records accurately reflect the business’s
The studies focused on the records income and expenses, there is a requirement,
keeping of small and medium - scale enterprises however, that some businesses use a certain
practices in Ghana and Philippines and the method of crediting their accounts: the cash
problems encountered in the SMEs industry. method or accrual method. Depending on the
The study utilized the descriptive method of size of the business and amount of sales, one
research. can create own ledgers and reports, or rely on
For the purpose of gathering data, the accounting software (Fishman, 2013).
researcher used the questionnaire as the main However, poor records keeping or non-
instrument. The questions were aligned to the availability of financial records will lead to
problems and objectives as presented in chapter resources mismanagement and poor cash
which focus on the current status and issues and management and this can cause the business to
challenges encountered in the industry in Ghana fail. Poor records keeping makes it difficult to
and the Philippines. differentiate between business transactions and
personal transactions. It is the responsibility of
Pilot Testing business owners and managers to avoid using
assets of the business for personal use at the
Percentage. This was used to determine expense of the business. Qualified Accountants
the proportion of the supervisor- respondents in play major roles in decision making process of a
terms of age, gender, civil status, highest business. Accountants with higher skills and
educational attainment, and number of years in experience have greater influence on the
the service as supervisor. decision making process of a business Tout,
Formula: Ghazzawi, El Nemar, & Choughari, (2014).
(P)% = f/n x 100 With their skills and experiences, they are in a
Where: good position to measure the financial
(P)% = Percentage performance and position of a business. This
f = Frequency allows users especially management to plan and
n = Total number of cases make economic decisions.
100 = Constant value
Significance of the Study
Mean. This was used to determine the mean The findings will benefit small business owners
age, gender, number of years of the service as under study to appreciate the need of good
supervisor and the final weight of each item in records keeping to reduce the burden of tax on
the assessment of the leadership on business them:
practices (Bueno, Matriano – 2016). The findings will assist the Ministry of Finance
and Economic Planning to lobby with
government to amend the income tax law so as
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to make it friendly for small business (f = 8; % = 16); 46 – 50 years old (f = 5; % =

enterprises; 10); and Over 50 years old (f = 5; % = 10).
To the tax authority the research will guide them It can be deduced from the result that 36
in adjusting tax policies so that they suit to 40 years old (17 or 34%) are the majority
requirements of small businesses. who are into SMEs business in Ghana. The
The findings will be used by other researchers different ways in which our culture views men
who might come across the study. and women in the workplace is complicated. In
a recent researches examined Americans’ view
Scope and Limitations on gender differences, looking at everything
from how men and women are perceived to be
The main focus of this study was to different in the society and, perhaps more
determine improper records keeping and tax importantly, why. While women are more likely
reform in small and medium – scale enterprises. to credit gender differences to societal
The study would be limited to selected small expectations, men are more likely to say
and medium-scale enterprises in Ghana and in biological differences are to blame. Some
the Philippines. Also, not all variables that may studies also found out that women are given less
influence records keeping and tax reform that is credit in the workplace even when expressing
included in the study due to the researcher’s similar ideas or speaking out as much as men
intention to narrow the research. The research is while men and women act the same at work,
based on previous year’s records from 2013 to they are treated differently(Mercado, 2018).
2018 assessment year in the selected offices of Also, the majority of the respondents in
Ghana and the Philippines. the Philippines were married with 27 or 54%.
The target population of the study would There are many perceptions that married men
comprise of employees of selected small and are more motivated and more dedicated to work,
medium – scale enterprises in northern region of whereas married women are more motivated
Ghana- Tamale and National Capital Region in and more dedicated to their families. Joel &
the Philippines. Small and medium-scale Katie (2014), suggested that marital status is
enterprises were chosen based on the access to sometimes used as an indicator to determine
information on the part of the researcher. The how likely it is an employee will remain in the
convenience sampling technique was used to same geographical location, his or her
obtain the small and the medium-scale willingness to travel, his or her health benefits,
enterprises for the study and the researcher dealt his or her level of commitment, and his or her fit
with employees who were available and willing within the organization (e.g., the relationship the
to participate. employee will have with other employees).
Also, when a man is married, he is considered to
Results and Discussion be socially supported and is seen as having less
This study used weighted mean to determine the family or role conflict with work roles, whereas
level of records keeping on small and medium- when a woman is married, she is considered to
scale enterprises and tax reform practices in the have more social responsibilities, contributing to
respondents’ businesses. The profile of greater work or family role conflict.
respondents in terms of:

Age Effectiveness
It can be seen from the result of table 5
that the age brackets with its corresponding The respondents’ view on the level of
distribution of the 50 respondents from Ghana effectiveness from the businesses under study
are the following: Below 30 years old (f = 5; % which were ranked from highest to lowest. All
= 10); 30 – 35 years old (f = 10; % = 20); 36 – of the items were rated with different mean
40 years old (f = 17; % = 34); 41 – 45 years old scores in the following order: item one (1)
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“There is effective government communication Social Equity

to enhance new programs” (Mean = 3.38, SD =
1.14); “There is sufficient fund to conduct my The participants mean scores on the
business” (Mean= 3.38, SD= 0.93); “There is small and medium-scale enterprises in Ghana on
effective government administration to enhance Social equity. The overall mean score resulted
new programs” (Mean= 3.09, SD= 0.92); to fully implemented (MI) for both management
“There is effective government assistance and employees, or 3.75 and 3.70 respectively.
programs” (Mean = 3.06, SD = 1.32); “Do you Illustrates social equity of selected small
participate in any government support and medium – scale enterprises practices in
programs” (Mean= 3.02, SD= 1.04); while Ghana. Five of the items were assessed to be
question six had the lowest mean score “I utilize fully implemented by the respondents as
new enhance government programs” with follows: Support charities (WM=3.71); Sponsor
the(Mean= 2.69, SD= 1.29.The overall events within the operating community
perception on effectiveness is illustrated on the (WM=3.37); Involve in social activities as part
table 5. Based on the grand mean of 3.10 (SD = of the marketing agenda (WM=3.57); Honest
1.21), summary results indicate that the grand business dealing that follow social norms
scale response is moderately agree which is (WM=3.94) and Place customer needs at the
interpreted as “somewhat effective”. This means forefront of all services (WM=3.76). In contrast
that the overall current status on the respondents one of the items was assessed as moderately
is somewhat effective. implemented by the same respondents.
Generally social equity recorded an overall
Economy mean of 3.70 which is interpreted as fully
The participants mean scores on the small and implemented. This is in line with studies by
medium-scale enterprises in Ghana on (Kissy, Togobo, Sam, & Darko, 2016) that 98
social enterprises have created a total of 958
Economy. jobs (based on staff numbers in 2015), have
Respondents view on economy of Ghana impacted the lives of 103,148 beneficiaries and
three items were assessed as fully implemented have generated a combined turnover of £1.4
by the respondents as follows: Generate million (almost 8 million cedis) in the last year.
production (WM=4.00) Create innovation An initial estimate that there could be around
(WM=3.62) Increase export (WM=3.60) while 26,000 social enterprises is currently operating
other three items were assessed as moderately in Ghana.
implemented by the respondents in the
following order: Create job opportunities to the Compliance of records keeping of books of
citizens (WM=3.50) Pay tax the government accounts.
(WM=3.22). Economy obtain overall mean of The participants mean score on the
3.61which is interpreted as Fully implemented. compliance of records keeping of the books of
According to Gariba (2015), SMEs contribute accounts, such as: the books of original entry,
about 85% of manufacturing employment and ledger and other subsidiary books in Ghana
70% of GDP in Ghana. In addition, SMEs are compared with the Philippines. It was noted that
also believed to make up about 92% of in Ghana, the perception of the participants were
businesses in Ghana. Moreover, SMEs also less moderately implemented (LMI), compared
provide potential market for industrial and with the Philippines with the Philippines which
consumer goods manufacture by other large resulted to moderately implemented and fully
enterprises through their demand for these implemented.
goods and services.

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Do you face difficulties when the location of the registrations offices, whereby
registering your business? they are based in urban centers.
Based on the interview from the According to respondent 2, there is a
participants of the SMEs owners it was revealed challenge of bureaucracy system in the
that there is a high start-up cost involved in registration of the SME’s, whereby they need to
properly registering a business in Ghana, start it up from the local authorities that includes
meaning that few SMEs move from being Barangay business permit that includes some
‘unorganized’ to ‘organized’. According to the hidden costs and time consuming altogether.
interviews, majority expressed the difficulties in According to respondent 3, lack of a stipulated
paperwork processing and documentation of the timeframe is a dilemma in the business
SMEs. For instance respondent 1 clearly registration, whereby there is no any
highlighted the complexity in the business recommended time through which the process
registration to an extent of pointing out the issue can be completed, something that hinders and
of the corruption syndrome among the discourages them from registering their
government officials. Respondent 2 expressed respective SMEs businesses.
the difficulty in acquiring the business
registration form, wherein they SMEs based in Summary
the rural areas finds it hard to have access to the The salient findings of the study are as follows:
required application forms due to the distance In terms of age 34% of Ghana’s
from rural to urban where the regional offices respondents are between 36 – 40 year old and
are located. According to respondent 3, there is 26% of Philippines respondents are between 41
no any stipulated business registration – 45 years old ; in terms of gender 80% of
timeframe due to the complexity in the process, Ghana respondents are male, while 70% of the
whereby majority are discouraged to register respondents of the Philippines are female; in
their businesses due to the prolonged waiting terms of civil status 74% of Ghana are married
time, without a clear duration. similarly 54% of the Philippines respondents are
The World Bank Doing Business Report (2016) also married; in terms of educational attainment
indicates it takes 14 days to register a business, 60% of the Ghanaian have at least finish their
with a total of 8 processes that must be high schools, while 24% of the Philippines
completed. Majority of the small business respondent at least also finish high school; in
claimed that, Land acquisition is very vital to terms of length of service; in terms of length of
the success of any business as it’s a factor of service 32% of Ghana respondents were
production. Unfortunately, in Ghana the land between 5 to 10 years of business experience,
tenure systems are very problematic. Difficulty while 20% of the Philippines respondents have
in acquiring land as well as leasing land, most between 5 to 10 years of business experience.
leases are often paid as much as 3 years in
advance and do not provide flexibility. The present status of effectiveness under Ghana
However the Philippines, is not an overall mean value of 2.45, which can be
exceptional. Business Environment range from interpreted as less moderately implemented.
the high cost of doing business to the lack of However effectiveness under Philippines had an
information services. Several SMEs also overall mean of 3.23, which is interpreted as
highlighted the difficulties in registering their moderately implemented by the respondents.
businesses, obtaining licenses, and the absence
of convergence of support from the government. The respondents’ judgment on efficiency under
This poses a challenge to young entrepreneurs Ghana also had the overall mean score of 2.41,
in the industry. According to respondent 1, they which is interpreted as less moderately
have limited information pertaining the business implemented by the respondents. Meanwhile
registration he went further to say it is difficult efficiency under Philippines recorded an overall
for them to know where to access the forms and
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mean value of 3.63, which is equally interpreted The respondents’ assessment on account
as fully implemented. payable under Ghana for both management and
employees had 3 management answered No
The present status of records keeping under representing 60%, cash payment 4 answered no
Ghana as perceived by respondents recorded also representing 80%, however inventory 4
overall mean of 2.27, which is interpreted as answered Yes representing 80% and cash flow
Less Moderately implemented. However report 4 representing 80% answered No
records keeping under Philippines had an respectively.
overall mean value of 3.67 which is interpreted
as fully implemented by the respondents In terms of business registration base on the
interview granted to individual respondent for
The respondents’ assessment on government both Ghana and the Philippines the selected
policy under Ghana obtained overall mean of businesses under review admitted to face some
2.34, which is interpreted as less moderately difficulties when registering their business.
implemented. Meanwhile government policy
under Philippines obtained an overall mean of In terms of access to market. Do have access to
3.22, which is interpreted as moderately market for goods and services, for both
implemented. countries the interviewees raised the same
concern when it comes to access market lack of
The respondents’ assessment on tax reform product standardization, as well as an overall
under Ghana recorded overall mean of 2.56, lack of knowledge of international markets were
which is interpreted as moderately implemented. some of the gridlocks. Do have access to
Equally tax reform under Philippines obtained productivity enhancement, respondents from
an overall mean value of 3.25, which is also both countries revealed that technology was big
interpreted as moderately implemented. problem for them to enhance their productivity.
Questions were also asked to determine the In terms of tax policy the issue of concern for
frequency and the percentage of the respondent both countries under tax policy was lack of tax
in Ghana under book keeping, both management education.
and employees answered No, with 33
employees representing 73% respectively. Conclusions
However both management and employees of
the Philippines respondents answered Yes with Majority of the Ghana’s respondents are
31 employees representing 77.5% in that order, between 36- 40 years old, male, have finished
under same book keeping. their high school and rendered service from 5 –
10years, while Philippines respondents have 41-
Equally when respondents assessed quick books 45 years old, female, have finished their post
under Ghana both management and employees graduate and rendered services from 11 – 15
answered No with 32 employees representing years.
71.1%. While quick books under the Philippine
the respondents made up of management and It was revealed effectiveness under Ghana was
employees answered Yes with 18 employees less moderately implemented which is an
representing 45% accordingly. indication that effectiveness is not implemented,
meanwhile effectiveness under Philippines was
The present status of account receivable of moderately implemented which means it is
selected business in Ghana revealed that 4 fairly implemented. Also, efficiency under
management representing 80% of the Ghana was less moderately implemented which
respondent answered No. While in the implies that efficiency is low implemented
Philippines 7 management representing 70% while under the Philippines efficiency was fully
answered Yes under account receivable. implemented indicated that efficiency is good

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implemented. However, economy under Ghana Recommendations

was fully implemented and Philippine’s
economy was fully implemented this indicates The respondents from Ghana were
that economy is in good standing with both majorly at high school level wherein they must
country. Moreover, in Ghana social equity was consider acquiring further studies so that they
fully implemented which implies that the can easily interpret and understand the
implementation was good while Philippine’s government tax policies. Majority of Philippines
social equity was moderately implemented this respondents were at the level post graduate
means that social equity in the Philippines is attainment which generally acceptable for one to
average implemented. understand and comply on the tax policies.

Based on the perception of the respondents it The Ghanaian government should

was revealed that, compliance of records institute a regulatory body to ensure SMEs keep
keeping was less moderately implemented in proper accounting books since the accounting
Ghana while Philippine’s compliance of records in SMEs are mandatory. The
records keeping was fully implemented this Philippines government should improve on the
implies that Philippines have good records PFRS for the simplification of records keeping
keeping policy. However, government policy for SME’s.
under Ghana was less moderately implemented
this indicates that there is poor policy by Tax administrators should have a special taxes
government in Ghana meanwhile in the preferences and incentives to startups and
Philippines government policy was moderately growth of SME’s. This includes lower tax
implemented indicates that policies is fairly income rate, special tax exemptions and relieves
implemented. Also, tax reform under Ghana was for small businesses.
moderately implemented and Philippines tax
reform was also moderately implemented this The Ghanaian government should come out
implies that tax reform is fairly implemented in with policies that can support SME’s in terms of
both country. financial support, technology advancements and
market accessibility. The Philippines
The respondents’ perception on set up
government should amend on the existing
bookkeeping system in Ghana revealed that,
technology, financial support program and
both management and employees of SMEs
market accessibility.
responded negatively while respondents from
Philippines counterpart responded positively,
The governments of Ghana and Philippines
similarly to setting up QuickBooks also
should implements policies that address the
experienced the same, majority of the
issues and concerns of SMEs that would
respondents in Ghana responded No and
improve the bureaucratic system during the
respondents form the Philippines responded
registrations of the SMEs.
Yes.
Base on the interview granted to individual
respondent for both Ghana and the Philippines
the collective issues and problems of SMEs are:
Difficulty in registration of business, Lack of
access to finance, difficulty in access of market
and product standardization, access to
technology and product enhancement and
improper tax education or government policies
by the authority.

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References Akugri. M. S, Walifah. J. K.,& Bagah. D. A.

(2015). The Contributions of Small and
Abiodun E. A& Entebang H. (2015),
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