The Effects Of Bookkeeping And Accounting Practices On The Growth Of Selected Primary Multipurpose Cooperatives In Beghi District, West Wollega Zone, Oromia, Ethiopia

Abstract

The study was entitled the Effect of Bookkeeping and Accounting practices on the Growth of Selected Primary Multipurpose Cooperative in Beghi District, West Wollega Zone, and Oromia Regional States, Ethiopia. The main objective of this study was to identify the challenge that hinders bookkeeping and accounting practices on the growth of primary multipurpose cooperatives in the case of selected primary multipurpose cooperative society in Beghi district. To address the objectives of the study employed both the combinations of descriptive and explanatory research design were adopted. Five primary multipurpose cooperatives were selected purposively. From five primary multipurpose cooperatives the target respondents were 139 selected purposively. The primary data were collected from all employees, committees through questionairies, semi-structured interview, members and district cooperative promotion office through check list. And secondary data collected from annual audit report, published and unpublished documents. The collected data were analyzed by using descriptive statistics such as frequency, percentage, Pearson correlation and multiple regression models in order to check the relation between dependent and independent variable of the study, with support of Statistical Package for social science version 25. The finding of the study reveals the primary multipurpose cooperative in the study area follow double entry bookkeeping system and majority of the primary multipurpose cooperatives has no Accounting policies and procedures and majority of them were no good and organized bookkeeping and accounting system, majority of the employees, committees and subcommittees of primary multipurpose cooperatives in the study area have low level of education and no more experience on bookkeeping and accounting practices and majority of the employees, committees and sub-committees of the primary multipurpose cooperatives in the study area have no accounting knowledge, accounting principles and computerized accounting, peachtree accounting and up-to-date cash flow analysis. The growth of the Primary multipurpose cooperatives has highly related to or positive correlation with bookkeeping and accounting system maintained, Availability of Books and records, Availability of Accounting process, the knowledge of employees, committees and sub-committees on Bookkeeping and Accounting and institutional factors at 95% confidence interval. Moreover, the study concluded that proper bookkeeping and accounting practices more contributes in the growth of Primary multipurpose cooperatives. but in primary multipurpose cooperatives there is not well organized and maintained of Bookkeeping and accounting practices these is one major problems need solution from Beghi woreda Cooperative promotion office. Finally, it is recommended that to enhance the growth of Primary multipurpose cooperatives in the study unit the Cooperatives should manage proper bookkeeping and accounting practices in their Primary multipurpose cooperatives