The Nigeria Economy has a lot of turbulence in the 1980’s. The period witnessed unemployment, inflation, dwindling oil revenue; the need has risen for the government to take serious steps to change the direction of the economy through policies which are aimed at restructuring and making better use of available resources.
However, this study was conducted to examine the impact of financial planning in the profitability and efficiency of small scale industries in Orumba North Local Government Area of Anambra State. The results of the study showed that financial planning has to be interpreted and used.
After an analysis of data, the study came out with findings of financial planning propels the level of performance of small scale firms.
It was found that small scale firms in Orumba North Local government was identified to be absence of proper financial records, illiteracy, bad attitude to change and high inflation and interest rate.
In other to exploit the optional benefits of this study, the researcher offered the following recommendations for the improvement of financial planning in small scale firms in Orumba north local government area of Anambra state.
- Considering the fact most small scale firms lack necessary managerial know-how, experienced and qualified staff should be employed on fulltime basis to design a good accounting system, draw up maintenance plans for such records and help relate them to profitable operations.
- Good records should be kept. While a business owned is not expected to be an accountant, he should at least be able to keep memorandum of records to assist the accountant in preparing his financial records or reports.
- Small scale industrialists should be enlightened through the use of seminars and government enlightment policies.