The impact of accounting system on the performance of small and medium scale enterprises is an in-depth research work directed to the Business management.The goal is to understand the organization behavior towards accounting principles, practice,policy and implementation.The study is set out to examine the extent to which SME's comply with the law of record keeping and how it affects their performance. This study therefore aims at drawing the attention of the management of SMEs to the need to establish accounting systems and keep standard accounting records for proper planning, organization and control of the economic activities of the enterprise and to improve the quality of reporting.