Automated Accuonting Systems And Performance Of Small And Midium Enterprises. (Case Study Of: Entebbe Municipality, Division B)

ABSTRACT

The study is aimed at to find out the relationship and comparison between automated and none automated small and medium enterprises in Entebbe municipality Division B.

Automated accounting systems were designed to ease and improve the pe1formance of small and medium enterprises and large entities at large through automatic calculations of financial statements and reports.

The research objective that this research was based on were;

To identify the small ad medium enterprises that use automated and none automated accounting system.

To find out performance of automated and none automated small and medium enterprises in Entebbe municipality Division B.

To compare the performance of automated and none automated small and medium enterprises in Entebbe municipality Division B. The research aimed at responding to the above objectives, questionnaires were designed to capture the responses of the different respondents. In total 200 respondents participated

in the research from both automated and none automated small and medium enterprises. 71 did not return the questionnaires to make the total of 271 questionnaires that were prepared and distributed.

Findings of the study indicated that, automated small and medium enterprises, however

there are some problems that come with the automated systems such as data theft, system break down and others.

In conclusion small and medium enterprises should adopt automated system because they produce more benefits compared to manual system. The improvement of the performance of small business and large businesses depends on the best books of accounts well prepared to give basis for decision making. Automated systems are more accurate due to the automatic preparation of financial rep01is and material errors are easily detected and solved.

TABLE OF CONTENTS

DECLARATION ........ ............................................................... ii

APPROVAL ............................................................................... iii

ACKNOWLEGDGEMENT ................................................ ... iv

DEDICATION ............................. ........................................... V

TABLE OF CONTENTS ........................................... .... ........ vi

LIST OF FIGURES ....... .... ........................................... ......... 1

ABSTRACT ................................................. ....................... 2

CHAPTER ONE; INTRODUCTION ................................................................................. 3

1.0 Introduction ......... .......................................................... 3

1.1 Background of the study . ....... .... ............................. 3

1.2 Statement of the problem .............................................................................................. 4

1.3 Purpose of the study ............ ..... ....................................... 5

1.4 Specific objectives ............................................................................ ............................ 5

1.5 Research questions ........................................................................................................ 5

1. 6 Scope of the study ....... ............................................................................ ...................... 6

1. 7 Significances of the study ............................................................................................. 6

1.8 Conceptual frame work ................................................................................................. 7

CHAPTER TWO; LITERATURE REVIEW ..................................................................... 8

2.1 Introduction . ............. ................................................ 8

2.2 Definitions of concepts ................................................................................................. 8

2.3 computerized accounting systems and performance of small and medium enterprises.

··············································· ············································· 9

2.4 Performance of small and medium enterprises . ............................................................ 9

2.5 Characteristics of small and medium enterprises .......................................................... 9

2.6 Financial performance of small and medium enterprises ........................................... 10

2. 7 Accounting computer packages used by small and medium enterprises .................... 11

2.8.1 Pastel accounting package ....................................................................................... 11

2.7.2 Tally accounting package ........................................................................................ 13

2. 7.3 Quick books accounting package ............................................................................. 14

2.8. Adoption of automated accounting systems .............................................................. 14

2.9 Problems faced in adopting automated accounting systems ....................................... 14

CHAPTER THREE; METHODOLOGY ......................................................................... 16

3 .1 Introduction ............................................................................................................ 16

3 .2 Research design .......................................................................................................... 16

3 .3 Research population .................................................................................................... 16

3 .4 Sample procedure ........................................................................................................ 16

3 .5 Sample size ........................................................................................................... 17

3.6Data collection .......................................................................................................... 17

3.6.1 Questionnaires .......................................................................................................... 17

3.6.3 Interviews ......................................................................................................... 17

3. 7Validity and reliability of the study ............................................................................ 17

3.8 Source of data ............................................................................................................. 17

3.8.1 Primary data ............................................................................................................. 17

3 .8.2 Secondary data ......................................................................................................... 18

3.9 Measurement of variables ........................................................................................... 18

3 .10 Data analysis and inte1pretation ................................................................................ 18

3.10.1 Quantitative data analysis ...................................................................................... 18

3.11 Limitations during data collection ............................................................................ 18

3 .12 Ethical procedures ..................................................................................................... 19

CHAPTER FOUR; DATA PRESENTION AND INTERPRETATION ......................... 20

4.0 Introduction ................................................................................................... 20

4.2. Findings on the number small and medium enterprises that use automated accounting

systems in Entebbe municipality Division B .................................................................... 22