Main Article Content
In the latest years, financial reporting practice has become a significant part of any businessas financial reporting helps the management of reporting entities become more efficient, effective and accountable. Therefore, this study attempted to investigate factors influencing the adoption of financial reporting among small and medium-sized enterprises in Mogadishu. Also, the study linked the results to literature and presented some suggestions. One hundred and ninety (190) questionnaires were used in the study through business owners, managers, finance directors, and accountants to achieve the study's objectives. The data were analyzed using SPSS software version 20 for descriptive statistics and multiple regression to establish the relationship between independent and dependent variables. The study found that accounting professions and educational systems, legal systems, and culture significantly influenced the adoption of financial reporting among SMEs in Mogadishu. In addition, the study revealed that ownership structure had a low influence on the adoption of financial reporting among SMEs. Therefore, the study concluded that approached model was fit to estimate factors influencing the adoption of financial reporting among SMEs in Mogadishu.