THE ROLE OF EFFICIENT BOOKKEEPING IN THE ENHANCEMENT OF THE FINANCIAL PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES (SMES): A CASE STUDY OF KMRB & ASSOCIATES.
DOI:
https://doi.org/10.29121/granthaalayah.v13.i4.2025.6477Keywords:
Financial, Enhancement, BookkeepingAbstract [English]
Small and Medium Enterprises (SMEs) are the backbone of economic growth in India and significantly contribute to the generation of employment, innovation, and GDP. One of the key issues SMEs are facing is the maintenance of proper financial records. This research paper discusses how appropriate bookkeeping can influence the financial performance of the SME sector and uses the case study of KMRB & Associates, a Thane-based chartered accountancy firm, to further substantiate this relationship.
It demonstrates how systematic bookkeeping practices supported by digital tools contribute to better decision-making, improved cash flow management, and profitability in client cases handled by KMRB & Associates through observation, data collection, and analysis. According to the findings of the study, SMEs that maintain timely and accurate financial records showed an average 18–22% enhancement in operational efficiency and profitability in comparison to those with irregular accounting systems. The paper finally concludes with recommendations for adopting digital accounting solutions and emphasises the role of professional firms in guiding SMEs toward financial discipline and sustainability.
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References
Kumar, S., and Rao, M. (2022). Accounting Practices and SME Growth in India. Journal of Business Economics, 12(3), 45–58.
Maseko, N., and Manyani, O. (2011). Accounting Practices of SMEs in Developing Economies. Journal of Accounting and Taxation, 3(8), 171–181.
Ministry of Micro, Small and Medium Enterprises. (2024). Annual Report on MSME Performance in India. Government of India.
Nwaigburu, K., and Eneogwe, V. (2019). Bookkeeping and Financial Performance of SMEs. International Journal of Business Research, 10(2), 23–31.
World Bank. (2023). Digital Transformation in SMEs: Impact on Productivity and Growth. World Bank.
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Copyright (c) 2025 Ms. Juhi Shetty, Dr. Reshma Nair, Dr. Bhawna Sharma
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