Thesis:

Analysis of the effect of accounting services on the performance of Small and Medium Entreprises (SMEs) in Kisii county, Kenya

SMEs have historically driven economic growth and created jobs in Kenya, aligning with Vision 2030. Although important, SMEs face many obstacles, including limited financing due to financial institutions' poor knowledge of their operations. Bookkeeping, taxation, financial auditing, and financial training services were examined to see how they affect SMEs' profitability in Kisii County, Kenya. The research was based on financial accounting, presumptive taxation, agency, and dynamic capacity theories. With a descriptive research design, the study addressed 7,563 Kisii County SMEs. For representativeness, 380 small business CEOs were selected using the Yamane technique. Small businesses and their owners/managers were analyzed and observed. Data was collected using semi-structured questionnaires for quantitative and qualitative insights. In descriptive statistics, bookkeeping services considerably affected SME profitability, with a mean rating of 4.0859. This showed that Kisii County SMEs valued accurate and well-maintained financial records for operational efficiency and decision-making. Taxation services were also influential, scoring 4.2546. SMEs' tax compliance with Kenya's laws and regulations increased profitability, emphasizing the importance of tax compliance in financial management. Financial auditing services had a moderate impact, with normal internal and external audits scoring 3.0307. SMEs understood the necessity of audit practices for financial openness and accountability, but their implementation varied. Financial training services had varying impacts, averaging 3.6166. These services may help SMEs learn financial management, however implementation consistency may be improved. SPSS statistical analysis included descriptive (means, deviations, percentiles) and inferential (correlation, regression) statistics. Visualizing results with tables, graphs, charts, and diagrams improved comprehension. Accounting services positively correlated with SME performance. The relationships between SME success and bookkeeping, taxation, financial auditing, and financial training were all positive. This study informs Kisii County authorities, financial institutions, and SME stakeholders. By addressing gaps and using findings, stakeholders can improve financial literacy programs and support mechanisms. The study suggests educating SMEs in bookkeeping to maintain accurate financial records for informed decision-making and operational efficiency. Offering courses and resources to help SMEs understand and comply with tax regulations will also improve financial management and prevent penalties. SMEs should perform regular internal and external audits to preserve financial transparency and accountability to build trust and attract investors. Last but not least, financial training programs on financial planning, risk management, and cost-benefit analysis will equip SMEs to increase profits. SMEs may overcome problems, enhance financial management, and contribute more to Kenya's economic development by using strong accounting procedures. Longitudinal counter terrorism studies, comparative regional studies, and qualitative community perception and coping strategy studies were recommended.