Financial Management System of Small-scale Agricultural Industries: Basis for a Training Scheme
Asian Journal of Economics, Business and Accounting · pp. 44–64 · Published 21 Apr 2022
10.9734/ajeba/2022/v22i1130607Abstract
The purpose of this study was to propose a training scheme based on the findings. This study aimed to evaluate the Financial Management System (FMS) of firms dealing with agricultural inputs. It was found from various literatures that the absence of a clear financial management system could lead to corruption, theft, fraud, data insecurity, and inability to monitor profit. In discussing these problems, this study considered accounting system, budget control, financial capability, and internal control which were moderated by firm age and size. The study employed quantitative, non-experimental, descriptive research design. There were 72 agricultural enterprises that participated in the study. Result reveals that the overall level of FMS among small scale agricultural industries is high. Further, there was a significant difference in the level of FMS among respondents when analyzed by firm size and age. A training scheme on budgetary control is designed because it registered the lowest measure among the indicators of FMS.
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