Computerized Accounting Systems Usage by Small and Medium Scale Enterprises in Kumasi Metropolis, Ghana

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Date
2016
Authors
Amanamah, Richmell Baaba
Morrison, Alfred
Asiedu, Kwaku
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Publisher
Research Journal of Finance and Accounting
Abstract
The study focused on establishing the level of usage, benefits and challenges of computerized accounting systems (CAS) by small and medium scale enterprises (SMEs) operating in the Kumasi Metropolis. Systematic sampling technique was used to select 367 SMEs for the study. Descriptive statistics and inferential statistics were used to analyse the data. The results of the study revealed that only a few SMEs are using computerised accounting software. The low level of usage is attributed to cost, personnel and lack of education on the benefits of using CAS. Those using CAS indicated that the systems play an important role in the achievement of their business objectives including timely information management, large data storage capacity, reduction of clerical works and enhanced customer satisfaction. In conclusion, usage of CAS by SMEs has the potential to improve their performance; however, cost, lack of education on the benefits of the usage and knowledgeable personnel are negatively affecting the usage of the software. It is therefore recommended that SMEs be educated on the benefits of using CAS and accounting training institutions should do well to incorporate a segment on computerized accounting systems into their training modules.
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Computerized Accounting Systems Usage by Small and Medium Scale Enterprises in Kumasi Metropolis, Ghana