MST-Department of Accounting and Finance

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Browsing MST-Department of Accounting and Finance by Subject "Accounting Information Systems"

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    Accounting Information Systems and Financial Performance of Small and Medium Enterprises in Kirinyaga County, Kenya.
    (Kenyatta University, 2023) Mwangi, Stephen; John Mungai
    Maintaining solid accounting1records is a significant component that contributes1to appropriate decision-making because it is the source of essential informational1requirements. Indeed, in the SME sector, the quality of accounting information used has a favorable link with an entity's success. In small and medium businesses, information and technology adoption is slow and has also harmed SMEs in Kirinyaga County and Kenya. The issue of poor accounting system acceptance can be linked to the initial goal of adopting information technology, which was primarily aimed to substitute the manual accounting processes, which has since hampered future use and investigation of the systems' benefits. This study sought to determine how accounting11information systems, influence the financial1performance of SMEs. Precisely the research sought to evaluate the influence of accounting information1systems records, accounting information1systems service quality, accounting information1systems data quality and accounting systems quality on the SMEs financial performance in Kirinyaga1County Kenya. The findings of this study helped SMEs improve their financial reporting and record-keeping which will benefit management in monitoring, planning on decision making ensuring their survival1in the business sector. The population of interest comprised of 1420 owners and managers which were registered with Ministry of Trade in Kirinyaga County. The descriptive research technique was used for this study. The population of interest comprised of 1,420 owners and managers which were registered with Ministry of Trade in Kirinyaga. Stratified sampling through the use of Yamane’s formula was applied. Primary1data was used for this study and was obtained using a questionnaire which was quantitative in nature and thus close-ended questions was used. Quantitative data analysis using descriptive statistics was adopted. Additionally a multiple regression and Pearson correlation analysis was used.The accounting information systems1records had a significant positive effect on financial performance of SMEs in Kirinyaga County, Kenya. This indicates that improving the way SMEs store and prepare their buy and sales ledgers helps enhance their financial performance. This indicates that financial success has a very strong positive relationship with competent bookkeeping. The results on accounting information systems service quality indicates that the variable had a positive and significant effect on financial performance. The results on accounting information systems data quality indicated that the variable had a positive and significant effect on financial performance. The accounting information systems quality had a positive significant effect on financial performance. The SMEs have made significant investments in accounting information system quality in order to improve their day-to-day operations. But to majority of the SMEs such an investment does not produce the intended results due to system failure, system error, and the generation of incorrect data, all of which impact decision-making processes. Relevance, correctness, understandability, and dependability of the accounting information systems quality were evaluated with performance, based on the premise that there is a link between accounting information quality and small and medium company performance.
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    Accounting Information Systems and Financial Performance of Small and Medium Enterprises in Mombasa County, Kenya
    (Kenyatta University, 2023) Kirigha, Francisca Wanjala; Peter Ng'ang'a
    Manually entering and documenting everyday business transactions has become impractical; organisations have realised the usefulness of adopting accounting information systems to improve their performance. An accounting information system is a data management and processing system that provides managers with the information they need to plan, manage and run a business. The study aimed to examine the effect of accounting information systems on the financial performance of small and medium enterprises in Mombasa County, Kenya. The study's objectives were to see how record-keeping systems, financial reporting systems, budget control systems, and cash management systems affected the financial performance of small and medium enterprises in Mombasa County, Kenya. The Technology Acceptance Model, Agency Theory and Decomposed Theory of Planned Behaviour were used to drive the study. This study adopted a descriptive research design and targeted 1640 small and medium enterprises located in Mombasa central business district that have been in operation for more than five years. 268 small and medium enterprises managers/owners were chosen using stratified random sampling. Data was gathered via questionnaires. A pilot test was conducted to ensure the tool’s validity and reliability. Statistical Packages for the Social Sciences version 24 was used to analyse data using descriptive analysis and inferential statistics. Ethics were followed before, during and after the study was completed. The study concluded that there is a strong significant relationship between record-keeping systems and financial performance of small and medium enterprises in Mombasa County, Kenya. The study also concluded that a strong significant relationship exists between financial reporting systems and financial performance of small and medium enterprises in Mombasa County, Kenya. The study went further to conclude that a strong significant relationship exists between budgetary control systems and financial performance and finally a strong significant relationship exists between cash management systems and financial performance of small and medium enterprises in Mombasa County, Kenya. As a result of the clear relationships established between variables the study was able to conclude that a clear relationship exists between accounting information systems and financial performance of small and medium enterprises in Mombasa County, Kenya. The study recommends the Government to develop policies and guidelines that will encourage small and medium enterprises to adopt accounting information systems, as well as Institute of Certified Public Accountants of Kenya to offer free consultation services to small and medium enterprises on choosing appropriate accounting systems, financial management and reporting.