EFFECTIVENESS OF ACCOUNTING

SOFTWARE IN BUSINESS PERFORMANCE

Student Name: Saif Talib Saif Albusaidi

Student ID: 51S1842
Course Code: BS BAMA3113-2
Course Name: Research Methodology
Contents
SCHOLAR ARTICLES:.............................................................................................................................3
GENERAL TOPIC OR ISSUE OF THE RESEARCH BY REVIEWING THE LITERATURE:...............3
GOALS RESEARCH METHOD AND METHODOLOGY:......................................................................4
“Impact of Accounting software for business performance” by M. wichramasinghe..............................4
Goal:....................................................................................................................................................4
Method................................................................................................................................................4
Methodology:......................................................................................................................................4
The impact of accounting software on business performance by Yvonne Chong and Ismail Nizam:......4
Goal:....................................................................................................................................................4
Method:...............................................................................................................................................5
Methodology:......................................................................................................................................5
Effect of accounting information system on organizational effectiveness: A case study of selected
construction company in Ibadan, Nigeria by Onaolapa A........................................................................5
Goal:....................................................................................................................................................5
Method:...............................................................................................................................................5
Methodology:......................................................................................................................................5
THEORIES CONCEPT AND MODEL:.....................................................................................................5
MAJOR CONTRIBUTION FOR THE BODY OF KNOWLEDGE:..........................................................7
MAJOR GAPS IN THE RESEARCH:........................................................................................................7
References...................................................................................................................................................8
SCHOLAR ARTICLES:
The research articles that I chosen for the topic are following:
1. The impact of accounting software’s on business performance written by Yvonne Chong
and Ismail Nizam, the article published by International Journal of Information system
and Engineering Vol(6) on April, 2018.
2. The title of the research is “Impact of accounting software for business performance”
written by M. wichramasinghe, the article published by Imperial journal of
interdisciplinary research volume-3, issue 5 in 2017.
3. The title of the research is “Effects of accounting information system on organizational
effectiveness: A case study of selected construction company in Ibadan, Nigeria”. The
article written by Onaolapa A. and Odetayo T.A. The article published by American
journal of business and management, Vol 1, issue no-4, 2012.

GENERAL TOPIC OR ISSUE OF THE RESEARCH BY REVIEWING THE LITERATURE:

According to many researchers, accounting software plays a significant role in operating
business functions efficiently and effectively. Accounting software has an ability to cater the
needs of competitive market by providing faster, secure, and without error up-to-date finance
information to the organization. In today’s business world, due to the increase in globalization in
world economy, organization has to face the numerous accounting challenges in terms of
handling various currencies and multiple accounting transactions. All these challenges enable
organizations to manage the international accounting issues by the adoption of accounting
software’s. According to Adhikari, Lebow and Zhang, 2004 found that adoption of accounting
software’s helps an organization to survive in a market and reach at success level by providing
up-to-date information, dealing with unlimited accounting transactions in multiple accounting
standards. Accounting information system has an ability to provide accurate, faster to use, and
provide error free information. Usage of accounting software’s increase the productivity,
efficiency and also cut down the cost. The goal of this research is to examine the impact and
effectiveness of accounting software’s on business performance. According to Sharkari,2011
states that the accounting systems provide the organized set of documents, records, reports, and
designed an information in a way that provide accurate financial data information to the users
that will be useful for economic decision making of an organization. According to Dr.
Dawl,2014 states that the accounting software’s had a significant importance in today’s business
world, as it allows organizations to make effective managerial decisions, efficiently deal with
multiple accounting transactions and also helps an organization by dealing with the multiple
accounting transactions of an organization. According to Hunton, 2002 founds that adoption of
accounting software’s by the organizations can increase the productivity, efficiency, and
effectiveness of the work. Which means it positively impacts on the business performance of an
organization. The main function of accounting software such as accounting information system
to develops the financial statements through computerized accounting system. The accounting
information system process the data and transform the information into accounting transactions
and financial statements that can be widely used by investors, creditors, and other internal and
external users. Accounting software’s can also store the data management, data knowledge and
also help in controlling the general data knowledge.

GOALS RESEARCH METHOD AND METHODOLOGY:

“Impact of Accounting software for business performance” by M. wichramasinghe.
Goal:
The goal and purpose of the research article named “impact of accounting software for business
performance” by M. Wichramasinghe is to analyze the relationship between usage of
accounting software’s and performance of an organization. The variables that author use in the
research studies are reliability, efficiency, and user friendliness. Following are the hypothesis of
the studies:
 Adoption of accounting software has an impact on reliability of information of financial
statements.
 Adoption of accounting software has an impact on the efficiency of information of
financial statements.
 Adoption of user-friendly accounting software positively impacts on the financial
statements.
Method:
The author used the simple random sampling technique for primary data collection. The
researchers select one hundred employees from public and private organizations that are familiar
with accounting knowledge and usage of accounting software’s. 42% are male participants and
58% are the female participants of the research. Researcher use the structured questionnaires
pattern to collect the data from the respondents.
Methodology:
After the data collection the author analyze and interpret the data through the usage of
descriptive statistical tools which includes mean, standard deviation, variance, graph and tables
to find out the results of the study. The author also used the SPSS software to determine whether
there is a relationship between both dependent and independent variables or not.
The impact of accounting software on business performance by Yvonne Chong and Ismail
Nizam:
Goal:
The goal and purpose of the research article is to analyze the impact of allocating software
characteristics such as efficiency, reliability, ease of use, data quality, and accuracy on the
performance of an organization. Following are the hypothesis of the studies:
 Accounting software efficiency has an impact on business performance.
 Accounting software reliability has an impact on business performance.
 Accounting software ease of use has an impact on business performance
 Accounting software data quality has an impact on business performance
  Accounting software accuracy has an impact on business performance.

Method:
The research study use the explanatory, exploratory, and descriptive method. The study used the
qualitative method to collect data that allows the researchers to investigate the facts, theories, and
hypothesis in an appropriate manner.
The author chose 100 respondents for the study. Random sampling probability method used by
the researcher for a sampling method. Cross sectional data collection technique has been used by
the researcher for a study. The target population of the study is accountant or user of accounting
software‘s that are working in a Malaysian organization.
Methodology:
The researcher use various statistical test for data analysis which includes descriptive analysis
and normative analysis, reliability analysis, regression analysis, and exploratory factor analysis.
The author also used Cronbach’s alpha coefficient and ANOVA test for analyzing the relation
between the variables.
Effect of accounting information system on organizational effectiveness: A case study of
selected construction company in Ibadan, Nigeria by Onaolapa A.
Goal:
The goal of the research is to analyze the effect of quality of accounting software’s on the
performance of business operation. Following are the hypothesis of the study:
 There is a significant relation between accounting software’s and business performance.
 There is no significant relation between accounting software’s and business
performance.
Method:

The researcher collect data by distributing structured questionnaires among the financial
accountant and site project manager of the selected Nigerian organization.
Methodology:
The author used the SPSS software to analyze the data by using descriptive and inferential
statistical tools to determine the accuracy and reliability of the data. Analysis of variance
(ANOVA test) has been also used for the testing of hypothesis.

THEORIES CONCEPT AND MODEL:

In the first study, the author used a conceptual framework. The author used the three
independent and one independent variable. Business performance is a dependent variable and
Reliability, efficiency, and user friendly are the independent variables.
.

In the second study, the researcher use five independent variables such as efficiency,
reliability, ease
Of use, data quality, and accuracy and the one independent variable called business
performance.
In the third study author used the theoretical framework based on relationship between
accounting information system and organizational effectiveness the author use the secondary
data information to support the hypothesis study.

MAJOR CONTRIBUTION FOR THE BODY OF KNOWLEDGE:

The first study contributes to analyze the effect of adoption of accounting software’s on the
proficiency of business operations and also on the profitability of small medium enterprise.
These studies helps the smallest scale business to realize the importance of adoption of
accounting software’s in their business operations because such companies are involved in
dealing with higher level of uncertainty in the competitive market.
The second study also majorly contributes in determining the effect of characteristics of
accounting information system on the productivity, profitability, and efficiency of the
organization. The study also helps the software developers to design some innovative software’s
that can fulfill the market demand and industry requirements and can also provide maximum
benefits to the firms by using the appropriate accounting software.
The third study focused on financial managerial decision making process. These studies majorly
contributed in the body of knowledge related to the quality of decision making. The author also
examine the usage of accounting software can also improve the managerial decision making by
having an accurate information. For that purpose, the researcher examined the effect of
accounting software’s on the business performance.
MAJOR GAPS IN THE RESEARCH:
In the first study, the target population is limited because they collect data from a single District
called Anuradhapura. The researchers suggest to collect data from different sources to reduce
the chances of error. The author also suggests that future studies can be conducted on the
challenges an organization can face during the implementation of accounting software systems in
the business performance.
In the second study, the researchers suggest that same study should be done in different sectors
to compare the findings that can provide more even better results the industrial sectors.
In the third study, the researchers suggest that they collect data from only two construction based
companies in Nigeria. So, future studies can be done in other fields by collecting data from a
large population.
References
T.A, O. A. a. O., 2012. Effect of accounting information system on organizational effectiveness: A case
study of selected construction company in Ibadan, Nigeria. American journal of business and
management, 1(4), pp. 121-132.

Wichramasinghe, M., 2017. Impact of accounting software for business performance. Imperial journal of
interdisciplinary research, 3(5), pp. 41-49.

Yvonne Chong, I. N., 2018. The impact of accounting software on business performance. International
journal of information system and engineering , 6(4), pp. 55-68.