The study investigated factors that influence non adoption of computerized accounting information

system by small to medium enterprises. The descriptive survey method provided an accurate
description of the variables in the problem model. A sample size of 72 SMEs was chosen from a
population of 100SMEs using the stratified sampling followed by random sampling. Questionnaires
and interviews were used for data collection. The research findings indicated that cost benefit
analysis , lack of government support, financial constraints, complexity of AISs strongly influence non
adoption of AISs by SMEs whereas ignorance about AISs as well as reluctance are weak predicators
of non adoption by SMEs. Findings also reveal that AISs is not associated with company size. The
researcher recommended government intervention through providing finance, subsidies as well as
collateral security to SMEs through both the Ministry of Small to Medium Enterprises as well as
Ministry of Information Technology for easy adoption

Abstract:
The increasing competition and the highly demands of globalization, Malaysia government attempt for
Small Medium Enterprise, SME for the development of innovative, competitive with high technology.
Computerized accounting system (CAS) adoption may be decisive factor for an organization to be
success and also to survive. This research project which aimed to investigate SME practice of CAS
and to identify the factor affecting the adoption among SMEs in Melaka. A survey was carried out
through a set of questionnaires to examine the CEO Innovativeness Factors Scale, Perceive
Usefulness Factors Scale, Perceive Ease of Use Factors Scale and Business Competitiveness. The
sample selected comprised of CEOs of SMEs in three districts in Melaka, namely Melaka Tengah,
Alor Gajah and Jasin. The data gathered were coded and analyzed using descriptive statistics, linear
regression analysis, Pearson Correlation analysis and Analysis of Variance (ANOVA). This study
reveals that CAS adoption rate in SMEs in Melaka is high. Results from the analysis also shown the
significant of independent variables and proved the relationships have been substantiated to the
dependent variable which contribute to the usage of CAS adoption between SMEs in Melaka. The
findings indicate that CEO innovativeness; perceive ease of use and business competitiveness
negatively correlated to the adoption of CAS. Results reveals that only perceive usefulness are
significantly positive correlated to CAS adoption. Therefore it can be deduced that adoption of CAS
among SMEs in Melaka is caused by its usefulness. The findings reveal that types of business and
business location influence the adoption of CAS. However, size (paid up capital, sales turnover and
number of employee) do not influence the adopter. Results also indicate that CEO literacy on ICT,
accounting and CAS has influence the responded CEO to adopt CAS in their business. However, the
advantages by using the accounting systems software were not fully utilized by CAS adopters.

Abstract

This study examines accounting information systems (AIS) effectiveness and its influence
factors in the specific context of small and medium manufacturing enterprises (SMEs) in
Malaysia. The proposed model examines the impact of AIS sophistication, manager
participation in AIS implementation, manager AIS knowledge, manager accounting
knowledge, and effectiveness of external experts such as vendors, consultants, government
agencies, and accounting firms on AIS effectiveness. We included 232 SMEs registered with
the Federation of Malaysian Manufacturers (FMM) in testing the model. The results show
that manager accounting knowledge, and the effectiveness of vendors and accounting firms
significantly contributed to AIS effectiveness. Overall, this study suggests that managers of
SMEs need to acquire sufficient accounting knowledge to better understand business
information requirements. Second, SMEs should engage qualified vendors who have
experience and understand unique characteristics of SME to overcome their lack of AIS
knowledge. SMEs should also exploit their good relationship with accounting firms to help
them implement effective AIS. Finally, it is important for SMEs to learn from AIS
implementation so that opportunities can be recognized and priority can be given to those
initiatives that support their information needs.

What Are the Benefits of an Information System in Accounting?

by Sheila Shanker, Demand Media

Related Reading: The Strengths & Weaknesses of the Revenue Accounting System

Once data is entered into a computer, it is safe. The chances of losing data are remote,
especially when you perform regular system backups. In manual systems, paper pads can be
lost or damaged more easily. You can save data on the Internet, where it will not only be
accessible anytime you need it but will also still be secure even if your computer is lost or
damaged.

The Advantages of Using Computerised Accounting

Software
Let me start this article by saying I am a qualified accountant who has taught accounting at a
variety of levels for over 18 years. I have also worked extensively as a business consultant
for small and medium size enterprises. I am continually amazed when I come across a
business either not using a computerized accounting package or using spread sheets to do
their accounts. Therefore I decided to write a short article on the benefits of using a
computerized accounting package. The package I use for our small to medium business is
MYOB (Mind Your Own Business) accounting software.

Small and medium sized businesses can now buy ‘off the shelf’ accounting programs at
remarkably low cost. Larger businesses will often have customized programs made for their
business. The accounting programs carry out functions such as invoicing, dealing with
payments, paying wages and providing regular accounting reports such as trading and profit
and loss accounts and balance sheets.

The introduction of computerized accounting systems provide

major advantages such as speed and accuracy of operation,
and, perhaps most importantly, the ability to see the real-time
state of the company’s financial position. In my experience I
have never seen a business that has upgraded to a
computerized accounting system return to paper based
accounting systems. A typical computerized accounting
package will offer a number of different facilities. These
include:

- On-screen input and printout of sales invoices

- Automatic updating of customer accounts in the sales ledger
- Recording of suppliers’ invoices
- Automatic updating of suppliers' accounts in the purchases ledger Recording of bank
receipts
- Making payments to suppliers and for expenses
- Automatic updating of the general ledger
- Automatic adjustment of stock records
- Integration of a business database with the accounting program
- Automatic calculation of payroll and associated entries

Computerized accounting programs can provide instant reports for management, for
example:

- Aged debtors’ summary – a summary of customer accounts showing overdue amounts

- Trial balance, trading and profit and loss account and balance sheet
- Stock valuation
- Sales analysis
- Budget analysis and variance analysis
- GST/VAT returns
- Payroll analysis

When using a computerized accounting system the on computer, input screens have been
designed for ease of use. The main advantage is that each transaction needs only to be
inputed once, unlike a manual double entry system where two or three entries are required.
The computerized ledger system is fully integrated. This means that when a business
transaction is inputed on the computer it is recorded in a number of different accounting
records at the same time.

The main advantages of a computerized accounting system are listed below:

Speed – data entry onto the computer with its formatted screens and built-in databases of
customers and supplier details and stock records can be carried out far more quickly than
any manual processing.
Automatic document production – fast and accurate invoices, credit notes, purchase
orders, printing statements and payroll documents are all done automatically.
Accuracy – there is less room for errors as only one accounting entry is needed for each
transaction rather than two (or three) for a manual system.
Up-to-date information – the accounting records are automatically updated and so account
balances (e.g. customer accounts) will always be up-to-date.
Availability of information – the data is instantly available and can be made available to
different users in different locations at the same time.
Management information – reports can be produced which will help management monitor
and control the business, for example the aged debtors analysis will show which customer
accounts are overdue, trial balance, trading and profit and loss account and balance sheet.
GST/VAT return – the automatic creation of figures for the regular GST/VAT returns.
Legibility – the onscreen and printed data should always be legible and so will avoid errors
caused by poor figures.
Efficiency – better use is made of resources and time; cash flow should improve through
better debt collection and inventory control.
Staff motivation – the system will require staff to be trained to use new skills, which can
make them feel more motivated. Further to this with many ‘off-the-shelf’ packages like
MYOB the training can be outsourced and thus making a particular staff member less critical
of business operations.
Cost savings – computerized accounting programs reduce staff time doing accounts and
reduce audit expenses as records are neat, up-to-date and accurate.
Reduce frustration – management can be on top of their accounts and thus reduce stress
levels associated with what is not known.
The ability to deal in multiple currencies easily – many computerized accounting
packages now allow a business to trade in multiple currencies with ease. Problems
associated with exchange rate changes are minimized.

In summary if you have not computerized your accounting you should seriously consider
doing so. I chose to train in MYOB after reviewing all the small to medium business
accounting packages on the market. In my view MYOB was the best overall package. A
free 90 day trial version of MYOB accounting software can be downloaded from your own
country’s MYOB website. This trial version is the full version but any business set up with it
can only have entries entered for 90 days; after that, purchase of the software is required. I
strongly recommend you download a version and take a look.

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5. The Benefits of Accounting Information Systems

The Benefits of Accounting Information Systems

By Gilbert Manda, eHow Contributor

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Accounting information systems are cost-effective.

Accounting information systems is designing a data processing system using software. It can
also be done manually. The computerized systems make accounting job easier by the use of
software which can compile financial, tax and payroll data. It can perform other bookkeeping
functions. The system collects and processes transaction data. Then it disseminates financial
information which management and company stakeholders use to make decisions.

Other People Are Reading

 Accounting Information Systems & Their Competitive Advantages

 Accounting Information System Advantages

1. Efficiency

o Computerized financial information systems are faster and more efficient in

processing data. The use of hardware such as scanners automatically generates
accounting information without much ado. The information is available almost
immediately. The cost of hardware such as computers is low and the
availability of cheaper and user-friendly accounting software makes
accounting information systems affordable. Computerized financial systems
enable users to access it promptly by the click of a mouse. Unlike manual,
which by the way is still very much in existence as some companies want to
keep both electronic and manual accounting information systems, the user
does not have to go through a pile of paper work in order to locate the
information he needs.

Cost Effectiveness

o Accounting information system makes the maintenance of a bloated financial

department irrelevant. The software does most of the work that would
otherwise require several employees. The accounting software can journal and
prepare documents such as the trial balance. Journals and ledgers are recorded
in the computer data bases. There is also software that can perform functions
such as billing budgeting and preparing payroll. Accounting information
systems help cuts the payroll for accounting staff substantially.

Disadvantages

o The benefits of accounting information systems are obviously immense. But

there is also a downside such as losing information if the system is attacked by
computer viruses. Of courses anti-virus software has improved, but no
computer or computer system is 100 percent immune from virus attacks. The
other problem is power failure. When that occurs information could be lost if
 not properly saved. The computerized information systems are also prone to
fraud if there are no proper internal and external controls.

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