Computer-Based Accounting Systems in Small and Medium Enterprises: Empirical Evidence from a Randomized Trial in Nigeria

Abstract

The advent of IT has offered significant improvement to the way financial transactions in business are processed by professional accountants. Hence, in most parts of developed countries, it is almost impossible to function as an accountant without requisite IT skills. However, the pattern seem not attain similar forte in SMEs especially in developing economies. Consequently, this study would provide answer to the degree of computer-based accounting systems adoption by SMEs in Nigeria. We have conducted an empirical investigation through a structured survey focused on finance and accounts executives of the enterprises that holds primarily responsibility for business transactions processing. This information was sought in order to expound on the extent of CBAS adoption by Nigerian SMEs. Respondents were obtained from manufacturing, agriculture, construction and mining, hotel and hospitality, IT services, medical services, wholesale and retail trade, and general services industries. Through a combination of cross tabulation and logistics regression analysis, our findings showed that the use of CBAS by Nigerian SMEs is highly significant as all companies operating in all industries surveyed uses one type of accounting software or another. This outcome suggests that professional accountants must endeavour to continually horn their skills for continued relevance in the profession.