THE IMPACT OF FINANCIAL ACCOUNTING ON THE PERFORMANCE OF BUSINESS ENTERPRISES [ A CASE STUDY OF OSOGBO LOCAL GOVERNMENT, OSOGBO OSUN STATE]

The study focused on financial accounting practice and performance of business enterprises in Nigeria. The essence of this research work is to determine the relationship between the quality of financial practice and performance of public enterprise. Data collections were both primary and secondary sources. The primary data was basically obtained by administration of questionnaires while that of secondary data was from annual reports of sampled/ selected of public enterprises. The study adopted the survey research and cross sectional research design. The sampled companies were obtained by using the stratified sampling technique while the sample size was obtained using the proportional sampling technique, Also, copies of a well-structured questionnaire were also distributed. The variables considered in the study were financial accounting practice and performance of public enterprises in Osun State, which were represented by quality of financial reporting. Two analytical methods were adopted for statistical analysis of the variables. They are descriptive and inferential statistics. Under descriptive statistics, variables were subjected to frequency and percentages. Data analyses were carried out using SPSS version 20 and statistical software, and the level of significance used to test the hypothesis was 5%. The findings show that there is a significant relationship between quality of financial accounting practice and performance. It also establishes that quality of financial report has significant effect on the performance of business enterprise. Based on these findings the study recommends that management of business enterprises should ensure that they adopt best practices in financial accounting because there is direct relationship between quality of financial accounting practice. However effective financial accounting practice should be adopted by the public enterprises as to improve the performance of the staff in their organization.