Universal Journal of Management 1(1): 13-21, 2013 http://www.hrpub.

org
DOI: 10.13189/ujm.2013.010103

Computer-Based Accounting Systems in Small and

Medium Enterprises: Empirical Evidence from a
Randomized Trial in Nigeria
Oladipupo Muhrtala Tijani1, Ajape Kayode Mohammed2

1
Elizade University, Ilara-Mokin, Ondo-State, 23401, Nigeria
2
Department of Accounting, University of Lagos, Akoka, Lagos, Nigeria
*Corresponding Author: oladipupotijani@gmail.com

Copyright 2013 Horizon Research Publishing All rights reserved.

Abstract The advent of IT has offered significant recognized the alignment of IT as business enabler to support
improvement to the way financial transactions in business business processes (Runge & Lee, 2002) [32]. Without
are processed by professional accountants. Hence, in most doubts, the emergence of numerous information technology
parts of developed countries, it is almost impossible to platforms has created a world of strategic opportunities for
function as an accountant without requisite IT skills. businesses managers including professional accountants
However, the pattern seem not attain similar forte in SMEs alike. The increasingly low costs associated with generalized
especially in developing economies. Consequently, this accounting commercial packages as compared to customized
study would provide answer to the degree of applications; the emergence of vendors who provides
computer-based accounting systems adoption by SMEs in industry specific packages; the growing demand by SME
Nigeria. We have conducted an empirical investigation businesses who are often unable to engage full-time in-house
through a structured survey focused on finance and systems development staff; and the trend towards
accounts executives of the enterprises that holds primarily downscaling organizational structures into strategic business
responsibility for business transactions processing. This units (SBUs) as well as the resulting move towards
information was sought in order to expound on the extent of distributed data processing systems environment has made
CBAS adoption by Nigerian SMEs. Respondents were the adoption of commercial software by SMEs a great
obtained from manufacturing, agriculture, construction and appeal (Hall, 2011) [13]. Accountants recognize the need for
mining, hotel and hospitality, IT services, medical services, AISs to be able to capture input from non-accounting
wholesale and retail trade, and general services industries. evidence in order to support input from financial information
Through a combination of cross tabulation and logistics for improved business decision (Brecht & Martin, 1996) [6].
regression analysis, our findings showed that the use of Ultimately, information provided by computerized
CBAS by Nigerian SMEs is highly significant as all accounting systems must possess the basic attributes
companies operating in all industries surveyed uses one recognized under any GAAP as those of any good
type of accounting software or another. This outcome accounting information.
suggests that professional accountants must endeavour to Developed and emerging economies of the world both
continually horn their skills for continued relevance in the recognized the enormous contribution to growth and
profession. development by SMEs. Studies have shown that SMEs
provide the keystone on which most economies of the places
Keywords Small and Medium Enterprise, reliance. Even the world giant (U.S.) largely hinge on the
Computer-based system, Financial Transaction, Accountants, contribution of SMEs as the sector contributes greatly to its
Nigeria novelty, output, reduction of unemployment and stability
(SBA Report, 2000) [34]. Empirically, over 99% of U.S.
employment is absorbed by about 51% of private-sector
workers; 38% of high-technology occupations; 75% of new
1. Introduction jobs and over 96% of the countrys export (Twist, 2000) [36].
This trend is not peculiar to the U.S. economy although
Development in information technologies (IT) over the variations may be attributed to the degree, impact and
years is fast converting this hitherto luxurious business indicators of contributions. By the year 2000, the U.K. SMEs
resource into a necessity as organizations have now had accounted for closely 99% of businesses and 99.8% of
14 Computer-Based Accounting Systems in Small and Medium Enterprises: Empirical Evidence
from a Randomized Trial in Nigeria

the countrys turnover. Two years later, this figure had risen (Pulakanam & Suraweera, 2010 [29]); and Spain (Grande,
to 99.8% of all businesses, 55.6% of employment generation Estebanez & Colomina, 2011 [12]), and Duschinsky and
and 52.0% in turnover (ODPM, 2005) [23]. Dunn, 1998 [9].
Other literature also attributed the quick economic Following the significant contributions of SMEs in world
transformations experienced by the Asian Tigers to the economies in general and Nigeria in particular, this study is
countries SMEs contributions. In Nigeria, over 97% of aimed at providing randomized investigation on the level of
businesses employ less than 100 employee indicating that computerized accounting usage by Nigerian SMEs, the
majority of employers in the country belong to the SMEs classes of commercial packages as well as factors
(Ariyo, 2000), [5]. In terms of SMEs contribution to responsible for the degree of CBAS adoption.
industrial growth, this figure is relatively low at 31%
compared to other economies given the high level of
1.1. Aim and Objectives of the Study
unemployment, illiteracy and mortality rates (Onugu, 2005)
[25]. This development necessitated the establishment of the The aim of this study is to provide empirical evidence on
Small and Medium Enterprises Development Association of the existence of CBAS in Nigerian SMEs. To achieve this
Nigeria (SMEDAN) by the Federal government in order to aim, the study seeks to:
support the growth of SMEs. i. investigate the extent of CBAS usage by Nigerian
Without doubt, SMEs represents the flag-sheep of any SMEs;
economic growth in the world. Hence, the fusion of IT in the ii. determine the classes of commercial package systems
strategic success of SMEs in contemporary economies adopted by SMEs;
makes the application of computerized accounting systems iii. identify factors inducing the extent of CBAS adoption;
inevitable as it determines their ultimate survival. SMEs
must continually evolve qualitative strategies, plan and
1.2. Significance of the Study
control activities effectively, and take decisions aimed at
optimizing the use of resources. It is necessary that they also The role of SMEs in economic development has been an
build accounting information systems required to integrate area of intense research both in practise and academia. This
managements requirements for planning, control and empirical investigation of CBAS in SMEs is therefore a
decision making. These accounting information systems are significant contribution to existing literature. Furthermore,
significantly enabled through computer technologies and are the study provides evidence on the extent to which Nigerian
often designed in accordance with techniques relevant to SMEs are IT accounting compliant in readiness for gaining
achieve qualitative decision-making objectives as key strategic competitive advantages in their businesses.
success business drivers.
There has been substantial publications drawing on
Information Communications Technologies (ICT) and 2. Previous Studies
Business. Some empirical investigations were aimed at
providing representation on generalized application of The application of computerized systems in business
technologies to business (Lindh, 2012 [20]; Ojukwu, 2006 information processing has been very significant to the
[24] in Nigeria; Devaraj & Kohli, 2003 [8]; and Brecht & accounting profession decades ago especially as it relates to
Martin, 1996) [6]. Others which had their focus on IT financial transactions. However, its applicability to SMEs
adoption amongst SMEs (Runge & Lee, 2002 32]; Kilangi, began to gain relevance in the twenty-first century especially
2001 [19] in Kenya; Wolf, 2001 [37] in Tanzania and Kenya; in developing economies. SMEs like any other
Alam & Noor, 2009 [3]; Kharuddin, Ashhari & Nassir, 2010 profit-seeking establishment must strive for survival through
[18] both in Malaysia; Mullins, Christos & Lannacci, 2011 business performance enhancement. They must engage in
[22] in Greece) however placed no emphasis on their business strategies aimed at providing competitive
accounting systems while other researchers investigated advantages in highly competitive societies in which they
conventional accounting information such as policy choices, exist. To achieve these, they must continually engage
financial practices and profitability performance amongst relevant tools and techniques taking cognizance of cost
SMEs (Zhou, 2010 [38]; Padachi, 2008 & 2012 [26-27]- comparativeness and properly utilized opportunities (El
Mauritia; Adewoye & Akanbi, 2012 [2]- Nigeria; Feteke, Louadi, 1998) [10]. Technologies provide the relevant
Damagum, Mustafa, Matis & Popa, 2010 [11] - Romania; prospects required to convert resource utilization into
AbdulRaheem, Yahaya, Muhtar & Abogun, 2012 [1] - productive, quality and performance-oriented business
Nigeria; Ismail & Zin, 2009 [14]; Karunananda & Jayamaha, (Ismail et al., 2003) [6].
2009 [17] both in Malaysia). The few empirical evidence on Although various stakeholders continue to engage in
computer-based accounting systems in SMEs were activities aimed at ensuring survival of SMEs, research has
publicized by authors mainly in Malaysia (Ismail, 2009; shown that the effective adoption of computerized systems
Ismail, Abdullah & Tayib, 2003 [15]; Sam, Hoshino & Tahir, by these firms is relatively low in most developing countries
2012 [33]; Ali, Abd-Rahman & Ismail, 2012) [4]; Australia as compared to developed environments, for example,
(Breen, Sciulli & Calvert, 2003) [7]; New Zealand Adewoye and Akambi (2012) [2] reported that generalized
 Universal Journal of Management 1(1): 13-21, 2013 15

IT adoption by small and medium scale industries in Oyo to support large volume of data, loose electricity supply
State, Nigeria recorded 56.7 percent. The study further (common to most developing economies), inability to carry
revealed that the usage of basic office equipment such as fax out data filtering (export/import data), and inability to fully
machine in communicating with customers for exchanging comprehend and interpret results.
orders was as low as 53.3 percent. In response to factors Breen et al. (2003) [7], in their study of computerized
militating against the use of ICT, breakdown and accounting systems in Australia presented a report for the
malfunctioning of IT devices recorded the most significant small enterprise association of Australia and New Zealand
descriptive which made the authors recommended that (SEAAN) 16th annual conference in Ballarat. Using the
SMEs should engage in training their employees in the use result of data collected from 122 firms that uses CAS and 99
of ICT and also engage the expertise of external consultants non-users, evidence discovered that about 96 percent of the
where applicable. The study however conclusively revealed SMEs install and use generalized packages ranging from
significant positive contribution of investment in ICT to mind-your-own-business, QuickBooks, cash-flow
SMEs profitability and business performance. manager and attach while the rest 4 percent make use of
On the other hand, the adoption of technologies with tailor-made systems. In a related development, Pulakanam
particular reference to AISs by Malaysian SMEs seem and Suraweera (2010) [29] explored the challenges faced by
relatively high as nearly 80 percent of SMEs surveyed in the users of SBA applications in their accounting functions.
Melaka has adopted CASs or are at various implementation Although external consultants play significant roles, major
stages (Sam et al., 2012) [33]. Studying the use of issues identified by SMEs in using the software amongst user
computerized accounting systems, 80 percent of responding confusion about software complexity, inadequate
SMEs chief executives possesses basic knowledge of user-support from software provider, insufficient accounting
accounting while 90 percent has at least rudimentary ICT knowledge and skills, work pressure and lack of IT and
skills and knowledge. In terms of familiarity with accounting financial resources, owner/manager accounting knowledge.
applications, over 75 percent of adopters were unfamiliar One study which contradicted majority of positions on the
with computerized accounting systems. This outcome was use of CBAS by SMEs was that conducted by Grande et al
founded on the possibility that majority of CEOs only access (2011) [12] in Spain. On the impact of AIS on performance
the CAS for financial report purposes and therefore do not measures, the authors revealed that there is no significant
have direct connection in accounts preparation using CAS. relationship between SMEs productivity and the use of
To describe competitiveness of the SMEs s surveyed, the computer-based accounting systems. The findings appeared
conclusion was that 70 percent of respondents in the characterized by inherent bias in recognizing the concept of
manufacturing sector believed that their firms existed in high productivity. Although the researchers ascertain the
information intensity industry hence the need for reliable, qualifications in productivity of AIS to mean efficiency,
up-to-date and accurate information to remain competitive. technological change and change of scale, only staff-cost
Enquiries about kinds of application systems deployed, was connected with reviewing productivity in the course of
majority adopt generalized applications mostly due to their the work.
flexibility, low cost and module specificity. Only 19 percent
make use of in-house packages.
Engaging SMEs in the manufacturing, agriculture, mining 3. Research Methodology
and construction, hotel and hospitality, information
technology, medical services, wholesale and retail trade, and Data obtained during the course of this study were
general services, Relhan (2013) [30] explored the use of gathered from SMEs systematically selected through the
electronic accounting in India. The result indicated that 97 city of Lagos. In deciding on the sample selection from
percent of the firms use computers in their accounting Lagos, consideration was given to the city as a good
functions. As regards software categories, 62 percent make representation due to reasons such as accessibility to target
use of turnkey systems in particular generalized accounting respondents, concentration of commercialization and
packages ranging from Pastel, Sun, Tally, Sage and population. To examine impact of size on the adoption of
QuickBooks while 25 percent simply deploy office CBAS, participants were defined as those having 100
automation systems. On the use of networks, only 28 percent employees or less. The basis for the number of workers is
uses stand-alone systems as other 72 percent deploy found in the experience of the authors and corroborated by
multi-user systems using local area networks (LAN). the findings of Montazemi (1998) [21] who opined that most
Enquiries about the factors responsible for the deployment of SMEs are often unwilling to disclose financial performance
IT systems in their accounting operations revealed that 79 related data. Similar view were also shared by Robinson and
percent indicated cost reduction, efficiency of clerical Pearces (1984) 31[] as they opined that owner-managers of
accounting functions, storage space for data and information SMEs are often characterized by lack trust and plainness and
processing while others were of the opinion that CASs assist are sensitive about disclosure of business related
in providing timely information for decision making. Few of information.
the challenges identified in the use CBAS include inaccuracy
of reports, frequent systems breakdown, inability of software 3.1. Survey Instrument
16 Computer-Based Accounting Systems in Small and Medium Enterprises: Empirical Evidence
from a Randomized Trial in Nigeria

Prior to the collection of data, a pilot test of the initial systems; transaction processing models (TPM) i.e. batch,
survey instrument was directed at 12 practicing accountants and real-time systems; networking utilization mode (NUM)
and 10 others in academia to ensure content validity. The i.e. stand-alone systems, LAN-based multi-user systems, and
Likert scale was used with metric and dichotomous questions WAN-based multi-user systems.
for analysing the variables and for conditions prediction
evaluation. The Cronbachs Alpha was used in estimating 3.2.3. Factors inhibiting effective utilization of CBAS
internal consistency and the coefficient revealed a value of This category of items were classified and applicable
0.789 in the pilot survey. The field work was carried out indicators applied viz. inaccuracy of reports generated
between May and July 2013. Evaluation of the 27 (CHL1), frequency of systems breakdown (CHL2), lack of
questionnaire items eventually revealed Cronbachs Alpha support for large data volume (CHL3), inconsistent supply of
coefficient of 0.602 was found while final sampling error electricity (CHL4), absence of data-filtering (import/export)
was calculated at 9.72% and considered acceptable for a functions (CHL5), inability to fully comprehend and
study without the existence of previously established interpret output (CHL6). The items were placed on a scale
parameters. In this study, constructs were employed and ranging between never represented by 1 to a great deal
measured as follows in order to determine the extent of represent by 5.
CBASs in use by the surveyed firms. The instrument was
sectionalized into four. Consequently, information contained 3.2.4. Improving CASs performance
in first section was on general company details amongst This last part was divided to seek respondents input to
ownership status, industry and/or sector, number of feasible solutions to problems inherent in utilizing CBASs.
employees engaged on full-time and number of years in Thus, applicable variables and indicators include
business. The second section was targeted at extracting online-real-time user support (IMP1), easier access to fixes
information on the adoption as well as the extent of usage of and upgrades (IMP2), inclusion of multiple windows mode
CBAS. Section three was on factors inhibiting the (IMP3), and reports customization (IMP4) as possible ways
effectiveness of CBAS while the last section sought of improving accounting software effectiveness and
information on probable means of improving the CBASs identifiable from users perspective. The variables were also
from users perspectives. All variables were placed on placed on a five points scale between 1 denoting very
pointed linear numeric Likert scale. This model is a blend of undesirable to 5 represented by very desirable, and
that adopted by Powell and Xiaos (1996) [28] in Malasia; applied accordingly.
and Relhan (2013) [30] on Indian SMEs. Afterwards, the
items were filtered and adapted accordingly. Respondents in 3.3. Data Collection
the study were end-users in finance and accounts functions
holding primary responsibility for financial transactions As identified in earlier question, the survey instrument
processing by computerized systems of the surveyed firms. was distributed across SMEs in Lagos. The total of 320
copies of questionnaire was delivered to responding SMEs.
3.2. Identification and Measurement of Variables Preliminary retrieval stood at 249 copies. Of this proportion,
19 copies were not entirely completed while the rest 230
3.2.1. General Background of Firms were confirmed fully completed, and ascertained valid for
input in data analysis representing an initial response of 72
In order to obtain an assessment of the impact of general percent. However, since the study made particular emphasis
companys background in the use of CBAS, information on on firms utilizing CBAS only, 49 others were confirmed
subjects background were obtained. This list includes non-users of CBAS and ultimately discarded. The use of
ownership, legal status, industry, year of years in operation, CBAS within this context refers exclusively to at least the
and number of full-time employees. For the purpose of this use of one module of an accounting package. Afterwards,
study, number of employee is considered a basis for only 181 copies of questionnaire were certified fit for
categorization between small and medium enterprises. A analysis representing an overall response rate of 57 percent.
small enterprise is considered such wherein the number of
employee is 50 or less while that of medium firms employ
100 or less. 3.4. Data Process
In the first place, preliminary analyses via
3.2.2. Adoption of CBAS
cross-tabulations were conducted, focused on exploring
For the purpose of examining the extent of adoption of descriptive characteristics of data items. This assisted in
CBAS, four categories of indicators were used. The level of effecting a comparative analysis as well as contrast the
accounting systems automation (LSA), i.e. combination of tendencies of different variables across SME industries and
manual and computerized systems, fully computerised across size classification. Secondly, to determine the factor(s)
systems, and wholly computerized-linked to web-based which are most influential in the adoption of CBAS, logistic
applications; types of software/packages in use (TSP), i.e. regression was applied analysing the influence of the
turnkey systems, backbone systems and vendor support dependent variable i.e. CBAS automation (LSA) against the
 Universal Journal of Management 1(1): 13-21, 2013 17

independent variables i.e. years in operation (YOP), industry Vendor-Support Systems. The use of Turnkey Systems is
(IND), and number of employees on full-time clarified under widespread amongst users of CBAS (Ismail et al, 2003) [16];
SME classification (i.e. small or medium). Thirdly, in Relhan (2013) [30]; Sam et al.,(2012) [33];. They are often
answering the question on challenges inhibiting CBAS completely finished applications, tested ready for
implementation, LSA was also adopted as the dependent implementation, usually either generalized or
variable and regressed against the variables identified earlier. industry-specific. They are also made available as compiled
For users perspective as regards avenues to improve program modules although with limited allowance for
systems performance, LSA was again adopted and regressed customization. (Hall, 2011) [13].
accordingly.
4.3. Scope of Computer-Based Accounting System
4. Data Analysis and Interpretation of According to the questionnaire, the most common
Results transaction processing mode is the batch and online
processing system recorded by 70% of users. Other 23%
4.1. Industry Classification process their transactions via batch mode only while another
8% are online real-time process users. Further evaluation
Responding firms were classified industry-wise and also indicated frequency of transactions processing. About
presented in Figure 1. Analysis indicate 80 percent were 18% of respondents process their transactions on daily basis
from hospitality industry; 68 percent response obtained from while 35% does same weekly. 46% of CBAS users process
wholesale and retail; 60 percent general services; 58 percent theirs monthly. Concerning network utilization mode, a
manufacturing; 53 percent agriculture; 48 percent IT services; cursory evaluation of cross tabulation result also discovered
45 medical services; and 43 percent from construction and that bulk of respondents tie data processing around
mining industries. This may suggest that there are more stand-alone systems 46%; about 40% does same via
SMEs operating under the hotel and hospitality industry. local-area-network (LAN) based multi-user systems while
the rest, closely 18% are WAN based multi-user systems
Industry Number of Number of Proportion
Survey Responses operators.
Manufacturing 40 23 58%
Agriculture 40 21 53% 4.4. Logistic Regression
Construction & Mining 40 17 43%
Hotel & Hospitality 40 32 80% 4.4.1. Determinants of CBAS Adoption
IT Services 40 19 48%
Medical Services 40 18 45% In order to provide support for factors which were most
Wholesale & Retail Trade 40 27 68% significant in the use of CBAS, we employ a Logistic
General Services 40 24 60% regression. The result was that the optimal variable in the
Total 320 181 57%
model with the most significant relationship with the
Source: Analysis of survey data (2013). dependent variable were firm-size (classification) and
Figure 1. Survey Responses. years of existence. Table 2, Table 3 and Table 4 detailed
the results of logistics regression. Subsequently, propensity
4.2. CBAS Adoption by Industry in the use of CBAS is greater with firm size (Exp (B) =
6.247E8), and number of years in existence (Exp (B) = 1.074)
The adoption of CBAS across industry is substantiated in increase.
the result of cross-tabulation.
Virtually 84% of responding firms combine manual and 4.4.2. Challenges to CBAS
computerized accounting systems as those who are fully The various variables analysed under this category were
computerized with web-enabled applications were found to evaluated against the dependent factor (LAS) identified
be just about 16%. We may from this outcome conclude that earlier and findings shown that the most significant
more SMEs are not e-commerce compliant. The forms of encounters as revealed in Table 5, Table 6, table 7, and Table
commercial accounting packages shared across SMEs were 8 experienced by users of CBAS by users were inaccuracy of
essentially Turnkey Systems (i.e. general accounting reports at (Exp (B) = 1.645); inability to support large
systems, special-purpose systems, and office automation volume of data (Exp (B) = 1.399); epileptic power supply
systems); Backbone systems; and Vendor-Supported (Exp (B) = 3.787); lack of data filtering (import/export
Systems. Across all industries, majority of responding firms, function) (Exp (B) = 1.556) increase.
about 87% are users of Turnkey systems
(manufacturing-13%; agriculture-12%; construction & 4.4.3. Recommendations for Improvement in CBAS
mining-9%; hotel and hospitality-18%; IT services 10%; and Applications
wholesale and retail trade-15%). Only general services When respondents were requested to provide input as
industry uses both Backbone and Vendor-Support systems, propositions to improving CBAS applications, the factors
with Backbone users constituting 7% of total sample and 6% which were concluded as most valuable were easier access to
18 Computer-Based Accounting Systems in Small and Medium Enterprises: Empirical Evidence
from a Randomized Trial in Nigeria

fixes and upgrades (Exp (B) = 2.912); and access to multiple of CBAS by responding firms, types and classes of
windows platform (Exp (B) = 1.221). These propositions commercial applications in use, mode of transactions
suggest measures which users perceive as fundamental to processing and factors with greatest incidence on the use of
enhance effectiveness of CBAS software. automated systems by the underlying companies.
Responding firms were categorized into their
manufacturing, IT services, wholesale and retail, agriculture,
4.5. Comparison with Similar Studies
construction and mining, hotel and hospitality, medical
A study was conducted by Ismail et al., (2003) [6] in services, and general services industries. Out of the total 320
Melaka, Malaysia on SMEs adoption of computer-based copies of questionnaire copies administered, only 181 were
accounting system. Using related survey, relationship returned fully completed and certified appropriate for the
amongst variables was clearly related with those found purpose of analysis. This represents a response rate of 57
herein. SMEs in Malaysia were reported to be at their early percent. Findings showed that the use of CBASs is highly
stage of CBAS adoption as majority of firms surveyed barely prominent in Nigerian SMEs.
utilize web-enabled applications. In addition, through Larger proportion of responding firms combine manual
statistical inference similar conclusions were reached as and computerized accounting systems and those who are
regards the use of turnkey systems more than Backbone and fully computerized with web-enabled applications were
Vendor-supported applications. Hence, similarity of subjects found to be of insignificant proportion. We concluded from
with those of this study makes both more comparable. this outcome that more SMEs are not e-commerce compliant.
In another study directed at small and medium accounting The forms of commercial accounting packages shared
agencies carried out in India, Relhan (2013) [30] discovered across SMEs were essentially Turnkey Systems (i.e. general
that majority of surveyed firms utilize accounting software in accounting systems, special-purpose systems, and office
processing their transactions. Their primary reasons were automation systems); Backbone systems; and
tendency to reduce overhead cost, achieve operational Vendor-Supported Systems.
efficiency and acquire large data storage space as well as The study provides evidence about the challenges faced by
provide for continuity in case of business process disruption. users of CBAS. Limits identified as most significant were
The outcome of the study found factors as frequent inaccuracy of reports, inability to support large volumes of
breakdown in electricity supply and systems interruption as data, lack of constant power supply, and lack of data filtering
utmost encounters. We are of the view that although (import and export function). In order to obtain users
electricity supply is a major challenge in Nigeria, most response on ways to achieve improvement by software
companies including SMEs continue to provide sufficient developers, evidence suggested that the most important
backing for power supply by putting in place power factors were the need to provide instant and easier access to
generating machines. Hence, reliance on public power frequent fixes and upgrades, and availability of multiple
supply is considerably low as at the time of putting this work window modes.
together. Finally, this study challenged professional accountants as
they must continually horn their IT skills without which their
applicability of their accounting knowledge would rapidly
become obsolete.
5. Conclusions and Suggestions for This study is limited to Nigerian small and medium
Further Studies enterprises. Hence, caution must be exercised in generalizing
our conclusions as regards the use of computerized
5.1. Conclusions accounting systems by other variants of businesses across the
country. Only factors which are peculiar to SMEs are
The application of IT to the accounting profession has considered appropriate in reaching our conclusions.
been a subject of study both in academia and practise.
Studies have shown considerable efforts in examining the
5.2. Suggestions for Further Studies
extent to which companies including SMEs across the world
has adopted computerized accounting. Several factors have The authors have considered Lagos as the primary area of
been identified with this trend amongst which are overhead survey. Hence it is suggested that comparable research be
cost reductions, business process effectiveness and conducted in other locations within the country. Such future
efficiency, the need to store large amount of data and the investigation may also consider wider group of respondents
provision of qualitative information for management to enhance research credibility when drawing conclusions
decision. about the population. Ultimately, it may be substantial if
This study empirically examined the use of computerized other factors such as ownership structure, acquisition and
accounting systems by Nigerian SMEs by evaluating finance maintenance cost, and accounting qualification amongst
and accounts executives who owes primary responsibilities other factors capable of influencing the use of CBAS are
for financial transactions processing. It considered the extent reflected.
 Universal Journal of Management 1(1): 13-21, 2013 19

APPENDIX
Table 2. Result of the Logistic Regression

Variables in the Equation

95% C.I.for EXP(B)

B S.E. Wald df Sig. Exp(B)
Lower Upper

Classification 20.253 4580.414 .000 1 .006 6.247E8 .000 .

Step 1a
Constant -41.456 9160.828 .000 1 .996 .000

a. Variable(s) entered on step 1: Classification.

Table 3. Result of the Logistic Regression

Variables in the Equation

95% C.I.for EXP(B)

B S.E. Wald df Sig. Exp(B) Lower Upper

Step 1a IND 18.832 1172.708 .000 1 .987 1.509E8 .000 .

Constant -133.304 8208.957 .000 1 .987 .000

a. Variable(s) entered on step 1: IND.

Table 4. Result of the Logistic Regression

Variables in the Equation

95% C.I.for EXP(B)

B S.E. Wald df Sig. Exp(B) Lower Upper

Step 1a YOP .072 .116 .379 1 .038 1.074 .855 1.349

Constant -2.150 .835 6.632 1 .010 .116

Table 5. Result of the Logistic Regression Challenges to CBAS

Variables in the Equation

95% C.I.for EXP(B)

B S.E. Wald Df Sig. Exp(B) Lower Upper

Step 1a CHL1 15.472 1927.164 .000 1 .004 1.645 .000 .

CHL2 -29.884 2273.308 .000 1 .620 2.511 .000 .

CHL3 -9.720 1277.070 .000 1 .001 1.399 .000 .

Constant 5.047 7186.159 .000 1 .999 155.506

a. Variable(s) entered on step 1: CHL1, CHL2, CHL3.

20 Computer-Based Accounting Systems in Small and Medium Enterprises: Empirical Evidence
from a Randomized Trial in Nigeria

Table 6. Result of the Logistic Regression

Variables in the Equation

95% C.I.for EXP(B)

B S.E. Wald Df Sig. Exp(B) Lower Upper

Step 1a CHL4 -.240 .259 .856 1 .000 3.787 .473 1.308

CHL5 -17.532 4755.354 .000 1 .007 1.556 .000 .

CHL6 2.663 5925.213 .000 1 1.000 14.343 .000 .

Constant 10.167 21777.682 .000 1 1.000 26028.202

Table 7. Result of the Logistic Regression Suggested Improvements to CBAS

Variables in the Equation

95% C.I.for EXP(B)

B S.E. Wald Df Sig. Exp(B) Lower Upper

Step 1a IMP1 .000 7393.578 .000 1 .985 1.000 .000 .

IMP2 -21.680 6059.315 .000 1 .001 2.912 .000 .

Constant 87.196 58503.684 .000 1 .999 7.393E37

a. Variable(s) entered on step 1: IMP1, IMP2.

Table 8. Result of the Logistic Regression

Variables in the Equation

95% C.I.for EXP(B)

B S.E. Wald Df Sig. Exp(B) Lower Upper

Step 1a IMP3 .000 7776.384 .000 1 .000 1.221 .000 .

IMP4 20.881 6059.313 .000 1 .997 1.171 .000 .

Constant -104.728 18991.455 .000 1 .996 .000

a. Variable(s) entered on step 1: IMP3, IMP4.

Vol. 4, No. 2, pp. 112-125.

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