COMPUTERIZED ACCOUNTING AMONG SMALL AND MEDIUM ENTERPRISES

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COMPUTERIZED ACCOUNTING AMONG SMALL AND MEDIUM ENTERPRISES  

ABSTRACT

In developing countries like Ghana, Small and Medium Enterprises (SMEs) constitute about 90% of all businesses and occupy a central part of The Ghanaian economy is the main driver in terms of its contribution to income, employment generation, and ultimately economic growth. However, over the years, many SMEs have folded up shortly after their establishment due to many factors; both environmental and internal. Key among these factors is poor accounting and financial Accounting. The study, therefore, examines the effect of computerized Accounting among SMEs in the Sunyani Municipality. The specific objectives were: to assess the types of accounting systems employed by SMEs; to examine the extent to which SMEs use computerized accounting in their business activities; to investigate the benefits and challenges with the use of the computerized accounting system. The study adopted a case study research design. The data collected was analyzed quantitatively and qualitatively. The researcher used purposive and random sampling techniques to reduce the possibility of research limitations. The primary data collected were analyzed using the Statistical Package for Social Science (SPSS) and the Excel computer software. The analyzed results are presented into graphical and descriptive representations such as tables, percentages, charts, and graphics. The study found out that the form of accounting by SMEs in the Sunyani Municipality is manual. Again, the study discovered that the majority of SME operators in the Municipality do not employ computerized accounting systems in their operations. It also revealed that computerization has positive effects on the operations of SMEs. Finally, the study found out that SMEs faced major challenges in adopting and implementing computerized accounting systems in the municipality. Based on the findings the study concludes that the inability of SME operators to use computerized accounting systems in their daily Accounting activities leads to

negative effects on their operations. The researcher therefore recommend that for better decision making and improved performance of SMEs, the National Board for Small Scale Industries (NBSSI) should collaborate with other benevolent NGOs to set up training organizations to offer basic ICT training skills and development program to SMEs operators at an affordable cost. This will help them acquired basic ICT skills to enable them to keep records of their business activities.

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