Computerized Accounting Systems and Operational Performance of Small and Medium Enterprise in Kawempe Division
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Date
2023-10-03
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Uganda Christian University
Abstract
The primary focus of the study was to investigate the impact of computerized accounting systems on the operational performance of small and medium-sized enterprises (SMEs) in Kawempe Division, Uganda. A survey was conducted on 144SMEs, out of the 240 SMEs established within the study area. The research used correlation analysis to examine the relationship between the different variables. There was a statistically significant relationship between use of accounting systems and the operational performance. This implies that SMEs that employed computerized accounting systems tended to perform better in their operations. System quality too, was found to have a statistically positive effect on operational performance. This indicates that having a well-designed and functioning accounting system can enhance the overall performance of SMEs. Furthermore, information quality also had a statistically significant effect on operational performance. This implies that the accuracy, relevance, and timeliness of accounting information are crucial for SMEs in achieving better operation performance. Network risks were however, found to have a statistically negative effect on the operational performance. This suggests that issues related to network security and reliability can hinder SMEs’ operational performance. It can be concluded that accounting systems play a crucial role in providing quality information in a timely manner. This, in turn, helps all levels of management make informed decisions, plan effectively, and enhance control, ultimately improving the performance of an enterprise. It is recommended that SMEs invest in well designed and functional accounting systems to manage their information effectively. Future research should consider introduction of moderate variables for better understanding of the effects of various factors on the relationship between accounting systems and operational performance. Lastly, longitudinal studies, conducted over an extended period of time could provide deeper insights into the relationship between accounting systems and SME performance, allowing for analysis of trends and changes.
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This is a dissertation.