2. Post Graduate Diploma

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Browsing 2. Post Graduate Diploma by Subject "Budget planning"

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    Effect of Financial Management Practices on Value Added Tax Compliance among Small and Medium Enterprises Taxpayers in Nakuru Town
    (KESRA/JKUAT - Unpublished research project, 2020) Njiru, Daisy Muthoni
    Taxpayers‟ behavior towards tax system has evoked great attention among many Revenue Authorities in the world, on the other hand, the global business environment has become intensively dynamic and increasingly unpredictable in recent decades, correspondingly, financial management of companies has become more demanding. Hence to achieve this competitiveness companies apply different strategies and financial management should be used as one of the main supporting system for strategy implementation. Having been noted that failure for SMEs to discharge broad financial management functions has contributed largely to tax compliance issues, the study will therefore seek to bridge the gap between financial management practices and tax compliance. Therefore, the study sought to determine the effects of financial management practices on tax compliance. It was guided by the following objectives: to determine the effect of financial reporting on tax compliance among SMEs in Nakuru Town, to establish the effect of cash management on tax compliance among SMEs in Nakuru Town and to analyze the effect of budget planning on tax compliance among SMEs in Nakuru Town. The study adopted cross-sectional survey design with a population of 452 registered small and medium enterprises in Nakuru Town. The sample was selected based on Sloven‟s formula, thus a sample of 212 respondents was selected using simple random sampling. Structured questionnaires was used as data collection instruments and analyzed through Statistical Package for Social Sciences (SPSS).Data collected from the questionnaires was analyzed using descriptive and inferential statistics.The study findings indicated that financial reporting(β = 0.103; ρ < 0.05), cash management (β = 0.393; ρ < 0.05) and budget planning(β = 0.328; ρ < 0.05) had significant relationship with VAT tax compliance among SMEs in Nakuru Town. Therefore, it is recommended that manufacturing firms should ensure that aspects relating to budgeting techniques are enhanced to ensure attainment of financial planning objectives, cash planning should be emphasized to maintain an optimal cash balance which can be invested in other ventures, inventory policies and systems to be established to prevent shortages and stock out costs and enhances their investment planning practices to enable firms meet short term obligations.