I.

INTRODUCTION

A. Problem Statement

The way firms handle their financial records and carry out routine accounting

activities has been changed by computerized accounting systems. Numerous benefits are

provided by these systems, including increased effectiveness, accuracy, and the capacity

to provide financial reports on schedule. However, there are various problems

experienced in using computerized accounting information systems that can lead to

significant risks and can negatively affect the flow of business operations. The goal of

this study is to learn more about and comprehend the problems that business owners

have while using computerized accounting systems.

Modern corporate environments are using computerized accounting systems more

and more frequently. The general ledger administration, accounts payable and receivable,

payroll processing, and financial reporting are just a few of the accounting tasks that

these systems automate using software programs. This automation improves data

quality, streamlines financial procedures, and makes it possible to make well-informed

decisions.

Computerized accounting systems might potentially simplify accounting processes,

but they are not without drawbacks. When establishing and utilizing these technologies,

business owners may run into several hurdles, from organizational and human aspects to

technological challenges. According to the case study of Innovature (2023), in some

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cases, businesses may lack the necessary knowledge about computerized accounting

solutions or harbor reservations about their costs and usability.

The integration of new technology in the business world resulted in several effects

on the operations of many firms. Various studies proved that despite the advantages of

using computerized accounting, there are circumstances that which several limitations

may occur and may reduce the effectiveness of utilizing accounting information.

Thus, to have further knowledge and to dig deep into the problems encountered

by business owners in using computerized accounting, this study would serve as a tool

to look beyond what advanced computerized accounting could bring to the field of

business industry among business owners.

B. Context

In a business scenario, the lack of adequate and essential technical foundations in

the internal controlling system is unable to benefit the organization from the

computerized accounting system. However, many firms used accounting information

systems integration to increase the accounting systems control process and

organizational performance.

Generally, this study focuses directly on the problems encountered by business

owners in using computerized accounting which will be served as a basis for the

integration of accounting systems. Business owners who are using computerized

accounting are the specific respondents in the study who are currently running their

businesses in Calasiao, Pangasinan.

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 This study will add to the body of knowledge by identifying and comprehending

the problems that business owners encounter while using computerized accounting

systems. Businesses, policymakers, and support organizations may build strategies to

successfully handle these problems by investigating at hand, which will improve

implementation, boost programs for training, and improve user support. The results of

this study will ultimately help computerized accounting systems in business contexts be

adapted and used successfully. Also, the conclusion from the results will be widely used

by many organizations as a basis for integrating computerized accounting systems into

their business operations.

Figure 1. Research Paradigm

Figure 1 shows the relationship between the independent and dependent

variables. Business size and computerized accounting are the independent variables.

Larger and more complex businesses may have different accounting needs and encounter

distinct challenges compared to smaller and less complex ones when using computerized

accounting systems.

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 The dependent variable is the problems experienced by business owners when

using computerized accounting systems. These problems could include data entry errors,

difficulties in system navigation, challenges in generating accurate reports, and issues

related to data integration and interpretation.

C. Research Questions

The overall aim of this study is to identify the specific problems encountered by

business owners in the utilization of computerized accounting systems. Specifically, it

seeks to answer the following research questions:

1. What is the level of problems encountered by business owners in adapting

computerized accounting systems?

2. How do software training and familiarity affect the quality of information that is

generated using a computerized accounting system?

3. What intervention can be proposed to address the problems encountered by

business owners in using computerized accounting systems in their business

operations?

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 D. Summary Description of Intervention and Research Method

The study is qualitative research utilizing the single-case research design. It will

utilize the researcher-made questionnaire and individual interview guides as its primary

tool for data gathering. The data will be used to analyze the problems encountered by

business owners in using computerized accounting in Calasiao, Pangasinan, the locale of

the study, as it is known for its vibrant business sector. This research will adopt a

qualitative approach to gain in-depth insights into the problems encountered by business

owners.

The research’s intervention will help business owners overcome the problems they

encounter using a computerized accountancy system, such as health risks, human errors,

and security threats. Through the intervention that will be taken in this study, business

owners will be prepared and will surely filter the relevance, and quality, able to derive

solutions just in case they encounter errors such as unstable networks, technical issues,

fraud, and privacy issues with their system. The intervention also intends to accomplish

a suggestion of personnel training, updating of safety systems, and deeper business

contacts to enhance the proposal to cope with the problems faced in the Accounting

Information System.

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 II. REVIEW OF RELATED LITERATURE AND STUDIES

Related Literature

Foreign Literature

Theft of data is one of the most alarming problems in using computerized

accounting systems since data stored in a computer can be copied and delivered to

competitors. With modern communication networks available, insiders of the company

may send confidential information about a company to another. Hackers can connect to

the network and steal data. This is probably the main reason why some businesses do

not implement the use of computer-based accounting inside the business premises

(Kumar, 2019).

Information systems are a major corporate asset, with respect both to the benefits

they provide and to their high costs. Therefore, organizations have to plan for the long

term when acquiring information systems and services that will support business

initiatives. Most organizations in developed countries are dependent on the secure

operation of their information systems because it is vulnerable to a number of threats

and require strict controls, such as continuing countermeasures and regular audits to

ensure that the system remains secure (Brittanica, 2023).

Haskasap (2021) suggested that with the upcoming technological advances in the

digital era, education will be delivered entirely through a computer-enabled system very

soon. In the educational system, instructors should align professional accounting courses

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with business ERP applications, allowing students to learn and practice computerization

courses.

According to the research that has been conducted by Dugaal (2022) to investigate

the factors influencing the implementation of CAS in SMEs, the majority of these studies

have discovered that computerized accounting systems increase the accuracy of financial

statements and speed up their generation. The importance, timing, and comprehension

of information, according to the findings, all play a role in the use and implementation of

a computerized accounting system.

According to the interviewee of the study by Ali et al. (2020), “The main issue is

due to inability to select an appropriate software which fits for small business as we also

have inadequate budget.” Aligning strategy with operational issues, dealing with

personnel, and budgetary restrictions for AIS investment are the problems of the existing

accounting system.

Ibrahim et al. (2020) claim that the use of computerized accounting systems has

had a considerable positive impact on the performance of small and medium-sized

businesses. They learned that some negative aspects of utilizing accounting software

include higher expenses, a lack of information about its advantages, and a shortage of

competent staff.

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Local Literature

Dependence on computers sometimes leads to bigger problems. With more

software data being housed in the cloud, there are more opportunities for hackers to get

your business's financial data and use it. Business owners can do a lot to mitigate the

disadvantages and potential problems associated with computerized accounting with

proper planning and software integration. Taking the time to establish it correctly is easier

and cheaper than trying to backtrack when a problem occurs. (Leonard, 2019)

In the digital era, cybersecurity is essential, particularly because many companies

have switched to remote or hybrid work arrangements and now depend on technology

like the cloud to stay connected and productive. IT professionals now have more to worry

about as hackers become more intelligent with their malware assaults and data breaches.

15 million data records were exposed globally during the third quarter of 2022 due to

data breaches, a 37% increase from the second quarter. Around the world, ransomware

attacks have impacted 70% of firms (Barrett, 2023).

According to the study by Christina (2021) that was conducted on students in the

city of Bandung who have a business, less accounting system information is typically used

by students who manage their businesses as entrepreneurs. Poor accounting expertise

and business agents' desire for success are responsible for the lack of utilization of

accounting data.

Accounting software is constantly improving and upgrading. With this, most

financial transactions and processes are being digitized. Moreover, this software can be

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quite costly and concerns a steep learning curve. Lack of accounting software literacy is

one of the problems that makes the role of accountants more complex and requires new

skill sets every year. This may find it hard to trust and could have a harder time keeping

up with competing firms. (Accountaholics Ph, 2022)

Related Studies

Foreign Studies

Thottoli (2020), information processing comprises quick responses, software data

processing, computer-assisted computations, and high repeatability. In place of

conventional manual accounting, a CAS is used to collect and process data. By reducing

the length of the needed data, it leverages the original data coding approach to increase

the accuracy of accounting data processing while saving storage space. Data

management on computers still uses a combination of artificial computational intelligence.

By putting up a computerized accounting system, businesses can control their financial

accounts.

According to Abdulle et al. (2019), a CAS can quickly produce all management

reports, such as budget and variance analyses. As a result, data collection and

interpretation become quicker and more precise, allowing managers to make better

decisions based on accurate and timely data.

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 A case study from northern Iraq on the effects of computerized accounting systems

on the auditing process showed a moderate contribution from these systems to the

effectiveness and efficiency of the auditing process. The findings showed that the

respondents needed clarification as to whether risk competence affects the efficacy of

auditing using CAS (Gardi, 2018).

In a study conducted by Uzrail & Bardai (2019), they found a significant

relationship between perceived financial performance (PFP) and the moderating impact

of the implementation of computerized accounting information systems (CAIS). The

observed financial performance of the organizations was also shown to be significantly

impacted by three independent variables: Satisfying users' information needs, the costs

of CAIS adoption, and the quality of accounting information from CAIS.

The increasing reliance on IT in banking operations raises security risks to

computerized accounting systems (CAIS). A study investigated the sources and causes of

risks to computerized accounting systems (CAIS) in financial firms, revealing that power

outages, employee risks, viruses, and outsider threats are the most concerning. Major

causes include accidental data entry, unauthorized copying, lack of backups, security

software updates, unauthorized personnel access, internal controls weakness, and lack

of written policies. The findings indicate a high level of perceived risks among financial

firms in Ghana and it is recommended to address these issues before they become

unbearable (Bansah, 2018).

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Local Studies

Chen et al. (2018) aimed to contribute to the country's limited research on the

various determinants influencing SMEs' decisions to adopt CAS. The importance of the

variables used in this study was established using univariate logistic regression. The

results of the study suggest that a number of factors, including relative advantage,

compatibility, complexity, observability, top management, organizational preparation,

industry, market scope, customers, rivals, and outside assistance, have a big influence

on SMEs' decisions to implement CAS. However, this study revealed insufficient proof that

firm size played a major role in CAS adoption.

According to the study conducted by Brila & Catapang (2020), the study’s overall

findings indicate that businesses strongly prefer utilizing AIS with their enterprises since

it is beneficial and more effective, but they do not strongly like AIS when bookkeeping to

maintain data integrity. A calculated mean of 3.18 indicates that they also perceive AIS

to be somewhat beneficial.

Aroc et al. (2022) state that computerized/modern accounting systems also have

disadvantages, such as potential fraud wherein hackers have more opportunities to get

access to the financial data of the business and use it, as more software data are being

housed in a cloud, there can also be a risk of someone within the business that has access

to the system that perhaps steal money from daily deposits and adjust the data in the

program, other disadvantages are technical issues such as power outage and viruses that

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can cause the system to crash. These disadvantages are threats to the security of the

data, information, or records of the business.

The business establishments, specifically hotels and restaurants have minimal

problems encountered in adopting the use of full computerized accounting system. In line

with this, it may conduct an in-house training for all personnel of the business offices for

the effective use of a computerized accounting system. (Cruz & Bulandos, 2019).

Perspective

The search for related literature and related studies became more influential to

the researchers as it served as a guide in making this study have a firm foundation of

findings. The related literature and studies both foreign and local discussed the different

problems in using computerized accounting systems, from software used, individuals

involved, and the threats that give most business owners the hesitation to build a

computerized accounting system. Also, some studies emphasized that there is a lack of

solid competencies and technical foundation in using computerized accounting. These

connections between the related literature together with studies and the conducted

research study highlighted the fact that would link to the other investigations as well as

formulation of timely interventions.

The acknowledgment of related literature and studies provided prior background

knowledge to the researchers that involved the phases that had formerly been studied

and served as a guide on what to do with the components of the research process.
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Furthermore, the various ideas were extracted from the findings of the aforementioned

literature and studies and the results of this qualitative study will be possible in the future.

In some instances, it would also be one of the sources of other future research.

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 III. RESEARCH METHODOLOGY

A. Sample

The research study aims to explore and evaluate the problems in using

computerized accounting, specifically, the respondents are the business owners from

Calasiao where the locale of the study is. Using Raosoft, the researcher will have a sample

size of 67 respondents from a total population size of 3,367 with a 10% margin of error

and a 90% confidence level. A purposive sampling method will be used to select

participants for interviews and survey questionnaires. Business owners from various

industries and different sizes of organizations will be included to ensure a diverse range

of perspectives. Particularly, the intervention of this study would be beneficial to business

owners in running their firms.

B. Triangulation Chart

When conducting qualitative research on the problems encountered by business

owners in using computerized accounting systems, a triangulation chart can be used to

organize the data from research questions to data sources and data collection.

Figure 2. Triangulation Chart

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 C. Data Sources

The primary data sources of this study that will be used by the researchers are

descriptions and recordings gathered from business owners. Descriptions are notes that

will be taken to describe the quality of data needed in the study while doing an interview.

On the other hand, recordings are the footage taken from in-depth interviews.

Furthermore, the researchers are open to collecting and analyzing relevant documents

such as academic research articles, case studies, or reports that can be used as secondary

sources to gain additional insights into the encountered problems.

D. Data Collection Procedures

A semi-structured interview and questionnaire will be conducted with the business

owners allowing them to share their experiences and challenges related to computerized

accounting systems. The interviews will be requested to be audio-recorded and

transcribed for analysis. Moreover, the respondents will be interviewed face-to-face in

the presence of researchers.

E. Intervention

One way to indirectly manipulate the independent variable is by selecting

participants who have different levels of experience or expertise in using computerized

accounting systems. This variation in participants can help capture a range of problems

encountered by business owners, allowing for a comprehensive understanding of the

issues. Consider selecting participants from businesses with diverse characteristics, such

as industry or size. These contextual factors can influence the specific problems faced by

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business owners in using computerized accounting, providing insights into how the issues

may vary across different organizational settings.

As an intervention for business owners who are interested in improving their

employee training programs, they need to develop training strategies to enhance

knowledge and skills in using computerized accounting for them to be familiarized with

their work. Conduct interactive computer applications that focus on the specific

challenges identified in the research that would provide business owners with hands-on

training in using accounting software so that they can use this as a basis in integration

of accounting system. Incorporate user feedback and suggestions gathered during the

research to ensure that the results address the specific needs and challenges faced by

business owners.

F. Data Collection

Since this study utilizes a qualitative research single-case research design, the data

will be gathered and analyzed as follows:

The researcher will send a letter to the College of Accountancy and Business

Administration (CABA) Dean for approval to conduct the study. A research questionnaire

will be prepared and printed once the instrument has been approved. In the

questionnaire, the researchers see to it that the participants can easily understand

questions. The participants will be given the assurance of confidentiality of findings and

that no private data will be utilized for other purposes. The personal information of the

participants will be used for profiling the data responses that will be gathered. This

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research project will be conducted in full compliance with research ethics norms.

Researchers will respect the right to privacy of research participants and always take

precautions to ensure data confidentiality and will take the core responsibility of

explaining, in appropriate detail, what the research is all about to the participants.

Participants in research studies have the option of refusing or participating without

consequence. If there is a possible risk, the researcher will ensure that the risks of harm

to the research participants in this study are minimal. The researchers will share the

findings with the study population.

G. Data Analysis

Below are the steps and methods that the researchers will use in analyzing and

presenting the data collected:

1. Transcription: From the conducted interviews and recorded discussions, the audio

or video recordings gathered will be transcribed into text format. This will ensure

that the researchers have a written version of the data for analysis.

2. Data familiarization: The researchers will read through the transcripts several

times to become familiar with the content and gain a general understanding of the

data while taking note of recurring themes, patterns, and interesting points that

emerged.

3. Categorization: Assigning labels to meaningful units of data and grouping similar

codes together. These can be descriptive short phrases that capture the essence

of the information such as software compatibility issues, technical challenges,

training and familiarity, or data security concerns. Labeling helps the researchers

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 to organize the data and facilitate similarities across different responses. This step

helps identify important topics that encompass multiple labels.

4. Interpretation: Analyzation of the relationships between categories and exploration

of the connections between different themes. The researchers will look for

explanations, underlying factors, or implications of the problems identified

considering the context in which the issues arise and the potential impact on

business owners' operations, decision-making, or financial management.

5. Supporting evidence: Throughout the analysis, the researchers will look for

relevant documents such as the literature and studies found that will support the

findings. These excerpts can serve as evidence to strengthen the study and provide

a credible conclusion.

6. Conclusion: The researchers will summarize the findings in a clear and concise

manner and present the problems encountered by business owners in using

computerized accounting, along with supporting data and illustrations. The

researchers will also ensure that the analysis is well-structured, coherent, and

aligned with the research problems.

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