Effect of Accounting Practices on Trade and Information Technology in Calabar Metropolis

Abstract

This study examined effect of accounting practices on trade and information technology in Calabar metropolis. The study specifically assessed the effect of accrual accounting and cash accounting practices on usage of information technology for trade by SMEs in Calabar metropolis. The study applied the survey research design with a well-structured questionnaire administered on three hundred and seven respondents. The ordinary least square technique was the analytical tool used in the study’s analysis. Findings from the analysis showed that accrual accounting and cash accounting practices had no significant effect on trade through information technology. Based on the findings, it was concluded that though accounting practices have no direct significant effect on information technology but in reality, information technology plays vital roles in modern trade towards effective and efficient attainment of organisational goals and objectives of setting up of SMEs. Relying on the findings and the conclusion reached, the study recommended that owners and managers of SMEs should train their employees on the use of accounting software, which are developed by information technology experts, for the timely preparation of accounting reports and or financial statements for prompt decision making. Lastly SMEs should investment adequate resources in accounting information system as this is necessary to monitor the level of organization activities, track receivables and conduct inventory control.