CHAPTER ONE

INTRODUCTION

1.1. Background Information

     According to Gamlath. (2021), the adaptation of Accounting software adoption does increased firm’s performance in Malaysia, Finland, Spain, Iran and Pakistan Saira, Zariyawati, and Annuar (2010) ; Gullkvist (2002) ; Sajady, Dastgir, and  Nejad (2008); Kouser, Awan, Rana, and Shahzad (2011); Cragg, King and Hussin (2002) .According to vast development in technology, modern technical tools and data transmission systems enabled the Turkey companies to effectively use their accounting software dealing with consumers and suppliers (Esmeray, 2016). Additionally, in facilitating management decision making, internal controls and quality of the financial report and transaction of the business, the information systems plays a pivotal role in assisting. Therefore, it is necessary to find out whether the business or organization can enhance their own performance by using the accounting software. In this study examine it may be positively  or negatively effects of Accounting software on the performance of small and medium size companies in Bamenda III to change the environment, better management of transactions and business competitiveness.

As a developing country the main part of the economy or backbone is small and medium size companies (SME) in Bamenda III. Not only Bamenda III also most of the country’s main part of the economic growth is Small and Medium Companies. Small and medium size companies in Bamenda III are creating new jobs and increase productivity of the whole economy in the country. SMC are playing very important role of creating innovation to the economy. Some of SMC are generally using manual systems for their day-to-day business activities. But the rapid changes of the technology are directly affected to the all kind of small business to survive the market and facing the competition very well.  Consequently more sophisticated accounting software has an increased demand for new and more sophisticated accounting software packages. Because of that, such companies are tending to use this kind of accounting software for their day-to-day business activities rather than manual system. Accounting software mechanizes the improving efficiency, effectiveness and controlling the overall expenditure. Also, accounting system is tend to be more correct, faster, ease to use and subject to error in less than the manual system.

1.2. Problem Statement

            Most small and medium size enterprises make use of accounting Software without knowing the importance it plays into their enterprises. They even find difficulties in assessing the importance of incorporating the need of designing accounting software.

            As a result of the industrial revolution in 17th century, technology becomes a pivotal part of the business world. It directly effects on business world in an innovative and improved way with a continuous updating and upgrading for its’ effective use. According to the characteristics of accounting software; efficiency, reliability, ease of use, data quality, and accuracy, most of the SMEs are adopting and using accounting software so that it is easy to generate effective managerial information in the routing and managerial decision making by such firms.

            Thus our research is based on finding if accounting software has an effect on the performance of small and medium size companies in Bamenda III as well as convince this companies on the need of accounting software and how it increases effectiveness, reliability, and ease of use on the performance of these SMSe.

1.3. Research Questions

In order to successfully carry out our studies, some research questions have been developed so as to help this study. These research questions have been divided into two parts; the main research question and the specific research question.

1.3.1. Main Research Question

What are the effects of accounting software on the performance of Small and Medium size companies?

1.3.2. Specific Research Question

With respect to our main research question, other specific questions have been formulated to accompany the main research question which will help in carrying out our study.

• What are the effects of efficiency on the performance of small and medium size companies in Bamenda III?
• What are the effects of reliability on the performance of small and medium size companies in Bamenda III?
• What are the effects of ease of use on the performance of small and medium size companies in Bamenda III?

1.4. Objectives of Study

These objectives are gotten from our Research questions laid above. Therefore we shall be talking of the Main Objective and the specific objective.

1.4.1. The Main Objective

Our main objective shall be:

• To determine the effects of an Accounting software on the performance of Small and Medium size companies

1.4.2. The Specific Objectives

These are those objectives which will help us attain our main objective to be used in our study. They include;

• To evaluate the effects of efficiency on the performance of of small and medium size companies in Bamenda III
• To evaluate the effects of reliability on the performance of small and medium size companies in Bamenda III
• To assess the effects of ease of use of accounting software on the performance of  small and medium size companies