An Investigation into the Significance of Accountancy to Agro and Agricultural Industry SMEs: Survey of Bindura Urban and Peri-Urban Agro and Agricultural Industry SMEs. (2012 - 2013)

The researchers carried out an investigation on the significance of accountancy to the agricultural and agro SMEs in Bindura Urban and Peri-Urban, using a survey research design. The sampled respondents comprised of agricultural SMEs, financial institutions, The Chief internal Auditor at the Bindura Municipality [key audit staff], an agro firm and a member firm of the Institute of Chartered Accountants. The sampling technique was a combination of random and convenience sampling techniques. A total of 50 questionnaires distributed to agricultural SME proprietors and only 44 (88%) were returned. Seven questionnaires were distributed to financial institutions in the Bindura Urban and only five were successfully returned. Interview guides were successfully answered by the respondents conveniently selected and these were chartered accountancy member, municipality Chief Internal auditor and one agro firm (Cotco). The major findings from the research were that the majority of the agricultural SMEs required assistance with budgeting for their farming activities. The respondents gave a signal that they could be uncomfortable with the current presumptive tax system. The idea of farming accounting was overwhelmingly supported by the agricultural SMEs. Farm security, including insurance cover, is top priority to all the sampled groups of respondents. As regards to loan repayments default the financial institutions attributed this to greed and poor accountancy. The Chartered accountants attributed the loan failure rate to lack of technical skills, inadequate financing, negative market changes and over borrowing. The researchers concluded from the findings that the Farming SMEs require assistance with budgeting and they accept farm accounting. Farm security is prioritised. The proprietors realise the impact of the diversion of funds towards AIDs epidemic on farming grants. Financial information is required by SMEs to make effective decisions on investment opportunities. The researchers concluded that there are obstacles to enabling farming SMEs access full services. As regards to recommendations all the agricultural SMEs in the Bindura district should be orientated on the availability of technical advisors and have confidence in them as regards knowledge of the industry. In addition the accountancy profession need a strong marketing stigma to agricultural industry stakeholders. Farm accounting modules should be included in the regulations of agricultural training colleges and universities in Zimbabwe.