Accounting Information System Usefulness for Effective Performance of Small and Medium-Sized Enterprises

Abstract

The development and implementation of a competent Accounting Information System (AIS) is essential to the successful performance and operational efficacy of organisations, particularly in situations when management requires information that is both consistent and accurate in order to make important decisions. However, the precise criteria that underpin the applicability of information, as supplied by AIS, remain insufficiently defined. This is especially true in the context of Small and Medium-Sized Enterprises (SMEs) in the state of Perlis. The primary purpose of this study is to investigate the relationship between financial performance, management performance, and organisational performance towards the usefulness of AIS in the context of SMEs. In detail, financial performance, management performance and organisational performance have been tested as the predictors of the usefulness of AIS towards the performance of SMEs this study. A self-administered questionnaire was used as the study sample in this investigation. The questionnaire was filled out by 233 respondents from SMEs in the state of Perlis. Results presented that a high correlation between AIS and financial performance (r=0.733). Also, results presented moderate corrections between AIS and management performance (r=0.631) as well as AIS and organisational performance (r=0.657. In conclusion, this research proposed a number of suggestions, the most significant of which was to draw more attention to the fact that AIS are useful for achieving an effective performance in the SMEs, particularly in Perlis.