The SMEs in Nigeria. · H1 Computerized Accounting System

The significant impact of information technology on
productivity and performance of SMEs can be considered as an issue of much
apprehension to business, scholars and practitioners in developing economy like
Nigeria. In a global world, the use of Information Technology to increase
productivity and efficiency is one of the challenges being faced by SMEs
presently in developing country due to the lack of knowledge on the benefit of
Information Technology in their businesses. However, there is the need for
changing roles of SMEs operation to meet the global challenges. Another problem
is the movement of labor hands in the accounting department and its union implication
and the problem of low efficiency and profitability in small and medium scale
businesses. The profession does appear to be
responding to such concerns. For example, the American Institute of Certified
Public Accountants (AICPA) published a monograph entitled, Information
Technology Competencies in the Accounting Profession; AICPA Implementation
strategies for International Federation of Accountants (IFAC) International
Education Guideline No.11, Implication for Education and Practice, which recommends
increased emphasis on Information technology in both Prequalification
accountants. In addition, the AICPA announced the formation of partnership with
Microsoft for providing information technology training for practicing
accountants.

1.3 RESEARCH QUESTIONS

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·        
To what extent has SMEs
adopted Information Technology in Nigeria?

·        
What benefit do SMEs derive
with the use of Information Technology in Nigeria?

·        
What challenges do SMEs
face while using Information Technology in Nigeria?

1.4 OBJECTIVES OF THE STUDY

·        
To determine the extent
to which SMEs have adopted Information Technology in Nigeria.

·        
  To evaluate the benefit of Information
Technology in SMEs in Nigeria.

·        
To find out challenges
SMEs are faced with using Information Technology in Nigeria

 

1.5 
RESEARCH
HYPOTHESES

In the study of this research, null
hypothesis will be used.

Hypothesis 1

·        
H0        SMEs have not adopted Computerized Accounting
System in their businesses in Nigeria.

·        
H1        SMEs have adopted Computerized
Accounting System in their businesses in Nigeria.

 

Hypothesis 2

·        
H0        Computerized Accounting System has no
benefit on SMEs in Nigeria.

·        
H1        Computerized Accounting System has
benefit on SMEs in Nigeria.

Hypothesis 3

·        
H0          SMEs are not faced with
challenges using Computerized Accounting System in Nigeria.

·        
H1        SMEs are faced with challenges using
Computerized Accounting System in Nigeria.

1.6  SCOPE OF THE STUDY

This study adequately
focuses on how Computerized Accounting System and the performance on SMEs in
Lagos.

·        
Sample Size: in the course
of this study 100 questionnaire will be distributed to different individuals
both male and female.

·        
Geographical scope: the
geographical location in the course of this study is Lagos state.

 

 

 

1.7 SIGNIFICANCE
OF THE STUDY

The study will add to the existing
knowledge and will also be relevant to:

·        
Accountant:
The finding of this study will enable the accountant to understand the
importance of computerized accounting system in performing his duties function
so as to ensure growth and remain relevant in a constantly advancing information
society.

·        
Professional
Accounting Bodies: professional
accounting bodies like Institute of Chartered Accounting of Nigeria (ICAN) and
the Association of National Accountant in Nigeria (ANAN) are also beneficiaries
of this research.

·        
Researchers:
researchers who will like to carry out further studies on this area will find
this study very relevant because it will serve as a data bank for further
studies.

·        
Business
Owners: this study will be useful business
owners most especially SMEs to understand the challenges and benefits of
Computerized Accounting System when running their business.

·        
The
Public at Large: this research will also
be very useful to seekers of information as it will enlighten them on
information Computerized Accounting System and performance on SMEs in Nigeria.

 

 

1.8 SOURCES OF
DATA

In gathering data necessary for the
completion of this finding, both primary and secondary source of data was
employed. The primary data was generated through administered copies of the
questionnaire. The secondary data was however generated from text books,
journals, articles, internet material and past project.

1.9 DEFINITION
OF TERMS

COMPUTER: A computer is a device that can be instructed to carry out an arbitrary set of arithmetic or logical operations automatically. The ability of computers to follow
a sequence of operations, called a program, make
computers very applicable to a wide range of tasks. Such computers are used as control systems for a very wide variety of industrial and consumer devices.

TECHNOLOGY:
Technology is the
collection of techniques, skills, methods and processes used
in the production of goods or services or in the accomplishment of objectives, such as scientific
investigation.
Technology can be the knowledge of
techniques, processes, and the like, or it can be embedded in machines which
can be operated without detailed knowledge of their workings.

ACCOUNTING
SYSTEM: Accounting system is an
organized set of manual and computerized accounting methods, procedures, and
controls established to gather, record, classify, analyze, summarize,
interpret, and present accurate and timely financial data for management
decisionss.

ACCOUNTING
INFORMATION SYSTEM: An accounting information system (AIS) is a system of collecting,
storing and processing financial and accounting data that are used by decision makers. An accounting information system is generally a
computer-based method for tracking accounting activity in conjunction with
information technology resources. The resulting financial reports can be
used internally by management or externally by other interested parties
including investors, creditors and
tax authorities. Accounting information systems are designed to support all
accounting functions and activities including auditing, financial accounting & reporting, managerial/ management accounting and tax.

SMALL SCALE ENTERPRISE:
– Small scale enterprise has various definitions, such that it is better
defined based on the characteristics. In the Nigerian context, small scale
enterprise is any processing, serving or manufacturing industry with an
investment in machinery and equipment above N500,000 Waboi, 1987.

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