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.