This study aimed to identify the status of accounting system in the small and medium enterprises in Jordan. To
achieve this aim, a questionnaire was designed and distributed into 100 respondents of owners of small and
medium enterprises in Jordan where 80 questionnaires were retrieved and analyzed statistically. The study
concluded that these enterprises lack of requirements of the good accounting system; these enterprises do not
employ accountants but they get help from an external accountant where there is a need and these enterprises do
not also have appropriate set of documents and do not keep suitable records. And these enterprises prepared only
income statement and balance sheet and ignore preparing cash flows statement and mentioning disclosures. In
addition, these enterprises do not audit their accounts at a legal audit office and they do not adapt any of
computerized accounting systems.