Assessing the Adoption of Accounting Information System for Decision Making by Small and Medium Enterprise.

Abstract

Over the years, the business environments are increasingly becoming highly integrated and more complex due to a sudden rise to the numerous business functions and operations at the various work places. This study was conducted to assess the adoption of Accounting Information System for decision making of Small and Medium Enterprises in Tamale Metropolitan Assembly. The specific objectives that guided the study were to assess the existing accounting information system used by SMEs, to determine the adequacy of the AIS of the SMES of the TMA and to identify the various AIS adopted by small scale and how AIS affects decision making. Additionally, the study aimed at suggesting appropriate AIS for the effective and efficient provision of business information to small scale businesses in TMA. Descriptive research design and a purposive sample of 100 SMEs were recruited for the study. The findings revealed that most of the SMEs uses accounting system information in its operations. Moreover, there was a positive relationship between Accounting Information System and decision making of SMEs Questionnaire was the instrument used in soliciting respondents’ views to address the research objectives based on the set objectives, the following key findings emerged: The respondents under this study were agric inputs dealers. The study revealed that specific AISs used by the SMEs were using are Pastel, Tally, Excel and Quick books. It was also noted that respondents encounter some challenges in using AISs and some of these challenges were ignorance about usage and frequent breakdown of channels.