Accounting Procedure and Profitability of Some Selected Small Scale Enterprises in Mogadishu, Somalia.

ABSTRACT This study was carried out to determine accounting procedure and profitability, the study was guided by four objectives: To determine the demographic characteristics of the respondents, To find out the level of accounting procedure in the selected small scale enterprise, to determine the level of profitability in the selected small scale enterprises and to establish whether there is a relationship the level of accounting procedures and level of profitability in the selected small scale enterprise. The study was conducted through descriptive survey and a correlation research design, quantitative approach with questionnaires a target population of 200 and sample size for 133 respondents from selected small scale enterprises in Mogadishu, Somalia. The first objective the researcher indicated that the whole small scale enterprise was dominated by men. The second objective showed that the extent of accounting procedures in the selected small scale is good as the mean showed. The third objective indicated that the level profitability in selected small scale enterprises show fair as presented the mean. The researcher found through the study that accounting procedure and profitability of selected small scale enterprises are significant correlated, and the relationship between them is strong relationship. Overall, small scale enterprise in Mogadishu use FIFO method in inventory evaluation, most of the small scale enterprises in Mogadishu use JIT for stocking inventories. All in the entire researcher recommended that the selected small scale enterprise have to train their employees and as well as managers towards accounting procedure.