2.8 Review of Empirical Study
Ogbonna (2005) carried out a study on impact of accountant on small and medium scale businesses in Lagos metropolis. The purpose of the study is to determine the importance of an accountant in small and medium scale business in Lagos metropolis. The population of the study comprises of three hundred (300) staffs of small and medium scale businesses in Lagos stale in which a sample of one hundred and fifty (150) was taken. The area of the study was Ikorodu Local Government Area of Lagos state and the major instrumental used for data collection was a structured questionnaire. Questionnaires were distributed face to face by hand and the same method was adopted in collection of the Questionnaire. Data were analyzed using statistical tools i.e. mean and standard deviation. However the study finds out that the factors responsible for the poor performance of small and medium scale business in Ikorodu Local Government Area are:
1. Inefficiency of the use of accountant by small scale business.
2. Poor accounting record of small scale business.
In comparison, Ogbonna study and this study are related in the topic thus; the both topic talks about the role or importance of an accountant in business entity/organization. Although due to the difference in case study the population was not the same and the area of study was also different. But the instruments used for data collection were the same likewise the method of collecting data was the same. The same methods of data analysis were used and the findings are related as to the need of an accountant in every business/organization survival and continuity. However, based on the finds of Ogbona study, the study recommended the following:
1. Business Organisations should make use of skilled accountant for effective performance.
2. Business organisations should adopt a good accounting system for profitability, productivity and good success of a business.
Oluoye (2012) carried out a study on impact of an accountant on profitability and capacity development in Mr. Biggs eatery Abakaliki Urban. The purpose of the study is to determine the importance of an accountant on profitability and capacity development in Mr. Biggs eatery. The population was eighteen (18) stuffs of Mr. Biggs eatery Abakaliki, the area of the study was Abakaliki Local Government Area of Ebonyi state. The major instrument used for data collection was a structured Questionnaire. The Questionnaire was distributed face to face by hand and the same method was adopted in collection of the Questionnaire. Data were presented in charts and analyze with percentage and the hypothesis was tested using Chi – Square. The findings of the study revealed that the factors responsible for the poor management of MR. Biggs eatery are:
1. Inadequate accounting records
2. Lack of experienced accountants
3. Poor business evaluation by staffs.
In comparison with Olaoye’s study and this study are related in the topic in the area of the use of an accountants to achieve profitability and capacity utilization in MR Biggs. The study is also related in the instrument of data collection and method of data collection but this method of data analysis is not the same, Olaoye used percentage to analyze his data and also use Chi – Square to test his hypothesis. But this work applied the statistical tool i.e. mean and standard deviation. Although the purpose of the two studies are related but the population and case study are different. However, based on the findings of Olaoye’s study, Olaoye recommended the following:
1. Provision of skilled and experienced accounting staffs for adequate accounting record.
2. Adopting of a good accounting system for profitability, productivity and good success of a business.
However, the recommendation of Olaoye’s study is also related to the recommendations of this
Summary of Literature Review
This chapter has examined the various role an accountant should play in an organization it has also reviewed that accountant are necessities toward organizational effectiveness in operation: thus, they financial data management, provision of financial report etc. However, this chapter carefully examine the extent an organization can help management to achieve organizational efficiency in its organizational budgeting process i.e. foresee the future transaction, provide information to management that assist them to arrange the financial obligations and also making sure that the prepared budget works in conjunction will long term goal of the firms.
More so, this study has revealed the areas accountant can assist management to achieve organizational goal and how to improve on the problems face by an accountant to enhance effectiveness and efficiency in an organization. Thus, an accountant is an assurance of business success in ever business organization.