The Determinates Of Selecting Accounting Software: A Proposed Model

Abstract

Selecting the appropriate accounting software has become an important issue for many organizations. Selecting the wrong accounting software would be a great disaster, it might lead to and future needs, business type, business size, features and attributes of accounting software, information technology infrastructure and environment, and vendor reliability should be taken into consideration before obtaining the software. The objective of this paper is to investigate, analyze and evaluate the main factors an organization should consider in its decision to select the appropriate accounting software. The paper introduces an integrated theoretical framework of the main factors affecting the selection of an appropriate accounting software package for an organization. The paper proceeds to introduce a proposed mathematical model of the determinants of selecting accounting software. The proposed model would help an organization to select the most appropriate accounting software that would satisfy its current and future needs for information and financial and non-financial reports. A. INTRODUCTION AND THE NATURE OF THE PROBLEM t is argued that we have come a long way from paper and pencil accounting systems. Accounting software packages have become commonplace for many organizations in recording business transactions, preparing financial statements and analyzing operations. Accounting software has freed accountants from the manual recording and presentation of financial data. By using accounting software, financial transactions would be recorded more quickly and accurately at a relatively low cost. Moreover, accounting software packages increased overall operational effectiveness by improving both the quantity and quality of management information available (Collins, 1999; Fisher and Fisher, 2001; and Abu-Musa, 2004). Years ago, when personal computers were just coming into their own, accounting software was relatively simple. Its single function was to automate the task of double-entry accounting and produce a straightforward balance sheet. As computers became more robust and integrated databases standardized, accounting software developers added more functions-including cost accounting, manufacturing resource planning, customer resource management, human resources, and payroll (Jones, 2002). Henry (1997) confirmed that the steady decline in the price of information technology and the increasing ses of any size to automate all or little knowledge of accounting to be put to effective use. User-friendly accounting software might also create significant risks related to the security and integrity of computer and communication systems, data, and management information. West and Zoladz (1993) stated that although computers provide many benefits, inherent computer security issues are not often addressed by management. Many organizations do not realize the importance of computer security until some unauthorized modification to a payroll file, or some other events, occur valuable asset, leaving it without protection is tantamount to underinsuring fixed assets or inventory. Accordingly, in I