1Department of Economics, Finance and Accounting, School of Business and Economics, Kibabii University, Kenya
2PhD. Lecturer, Department of Economics, Finance and Accounting, School of Business and Economics, Kibabii University, Kenya
3PhD. Senior Lecturer, Department of Business Administration and Management, School of Business Administration and Economics, Kibabii University, Kenya
Online Published on 18 August, 2022.
This study aims to identify the effect of preventive accounting controls on organizational performance of selected SMEs in Bujumbura City, Burundi and specifically, the study is driven by effect of segregation of duties on organizational performance of selected SMEs in Bujumbura City, Burundi; effect of physical loss prevention on organizational performance of selected SMEs in Bujumbura City, Burundi; and effect of proper reporting on organizational performance of selected SMEs in Bujumbura City, Burundi. 1463 workers were targeted from the 10 selected companies. A representative sample of 314 workers of the SMEs were selected to participate in the study using Yamane, (1967) Formula together with proportionate stratified random sampling method.From 314, 302 successfully filed and returned the questionnaire. Linear regression analysis was used to assess the effect of preventive accounting controls on the organizational performance of selected SMEs in Bujumbura City, Burundi. Hierarchical linear regression model was used to assess the moderation effect of government regulations on the relationship between preventive accounting controls and organizational performance of selected SMEs in Bujumbura City, Burundi. The findings of the study show that preventive accounting controls had a statistically significant positive effect on the organizational performance of selected SMEs in Bujumbura City, Burundi (β= 0.387, t = 11.498, p=0.000 <0.05). The moderation analysis also shows that government regulations had no significant moderation effect on the relationship between preventive accounting controls and the organisational performance among the SMEs in Bujumbura City, Burundi(ß = -0.046, t =-1.208, p-value =0.228 >0.05). The study therefore concludes that preventive accounting controls have a statistically significant effect on the organisational organizational performance among the SMEs in Bujumbura City, Burundi, and that government regulations have no significant moderation effect on the relationship between preventive controls and organisational performance among SMEs in Bujumbura City, Burundi. The study recommends that small and medium sized enterprises should check their organizational performance by carrying out preventive controls to ensure that organizational goals are accomplished.
Preventive controls, Profitability, Organizational performance, Government regulations, SMEs
