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Small Scale Enterprises have been the engine of growth of many economies in the world. But most small businesses die off soon after their establishment. Many studies have been done on this menace. However few studies have been directed toward how poor financial management practice among small businesses contributes to this canker. The major tool for good financial management is financial reporting. This study brings to light the financial reporting practices among small scale enterprises. It also looks into the financial records keeping procedures of small scale enterprises. The study further brings to bear the problems Small Scale Enterprises face in preparing financial reports. Finally, the study reveals the price Small Scale Enterprises pay for failing to prepare financial reports.Finally, the study gives the importance of financial reporting to Small Scale Enterprises and suggest pragmatic measures for sound financial management for the success of Small Scale Enterprises.