An Analysis of how electronic accounting is affecting the financial performance of Small-to-Medium Enterprises in Zimbabwe. A Case study of Siyaso Mbare Harare
- Author
- Chipara, Last
- Title
-
An Analysis of how electronic accounting is affecting the financial performance of Small-to-Medium Enterprises in Zimbabwe. A Case study of Siyaso Mbare Harare
- Abstract
- The business of today is now moving to paperless environment due to the introduction computers. The accounting and the auditing work is now becoming easier where technological advancements are improving the financial performance of companies. These introductions of e-accounting have got different implications among small-to-medium enterprises in developing countries like Zimbabwe. After the adoption of online accounting, a company could enjoy a number of benefits which includes, quick preparation of reports, mathematical accuracy, security of company information, to mention a few. Enterprises in Siyaso Mbare Harare were selected randomly when drawing the participants for sampling. The researcher had used both the secondary and primary methods of gathering data, thus the, published articles, interviews and questionnaires. The research findings had then revealed that, most of the enterprises were facing challenges of power cuts, lack of technical skills and knowledge on how the accounting packages works. Other major findings also revealed that, the adoption of e-accounting has led to a great improvement on the financial performance of SMEs in Mbare. Although there was still some other complications with the system. This study was only focusing on the effects of e-accounting on financial performance while there are some other technological changes other than e-accounting that affects financial performance so these determinants also need to be investigated in other researches. This study has added something to the literature through examining the effects of electronic accounting practices in relation to the financial performance of an organization. This study might contain some relevant information that could give benefits to a number of SMEs relating to their current accounting practices. In addition to the above, conducting such a research in the accounting field provides new insight to the literature on both the developed and emerging enterprises. Types of accounting software packages mostly used were, Quickbooks, Sage and Freshbooks. In order to set up a proficient accounting systems, firms have to set up adequate training programs to equip employees who uses computer systems with more skills, techniques and knowledge about the packages. Enterprises could also maximise their benefits they are enjoying by setting up a local network to speed up their processes and also to have power backups to curb off the effects of load shedding.
- Date
- June 2022
- Publisher
- BUSE
- Keywords
- SMEs,
- Financial performance,
- Supervisor
- N/A
- Item sets
- Department of Accountancy
