The Influence of the Computerised Accounting System on the Financial Performance of Small and Medium Enterprises: A Case of Iringa Municipality

Abstract

This study assessed the influence of computerised accounting systems on the financial performance of Small and Medium Enterprises in Iringa Municipality. The study’s overall objective was to assess the impact of the computerised accounting system on the financial performance of Small and Medium Enterprises. This study used a descriptive research design, with 80 small and medium enterprises participating. The data were collected through the administration of questionnaires, analysed descriptively using Statistical Package for the Social Sciences software, and presented in the form of tables and figures. The study findings indicated a positive correlation between technology utilisation and accounting practices, demonstrating that computerised accounting systems significantly impacted the performance of Small and Medium Enterprises. Furthermore, the findings suggested that the implementation of computerised accounting systems improved efficiency within Small and Medium Enterprises. Lastly, the research revealed that the majority of Small and Medium Enterprises produced accurate financial reports, which had a notable influence on their overall financial performance. The study recommended Small and Medium Enterprises to install computerised accounting systems due to their associated benefits.