need for accounting software research papers

2021/05/21

Freshly graduated students must have practical knowledge acquisition about accounting software and its usage. []. Another interviewee mentioned that they did not use any programs in their accounting because business was small. 113-134. The SMEs are categorized according to the number of employees employed. Further, software consultants should also know current accounting and tax regulations issued by government to develop customized accounting software for Omani SMEs. The rationale for selecting the respondents was their experience and basic knowledge in accounting and accounting software and their practical knowledge and its applications within the selected SMEs in Oman. 10, pp. As per the limited knowledge of the researcher, there are no previous qualitative study that used and empirically examined the relationship between knowledge and use of accounting software among accounting professionals of SMEs in Oman. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. Thottoli, M.M., Thomas, K.V. Most of the respondents (three out of six) agreed that the aspects, namely, theoretical and practical knowledge of accounting software and knowledge of using accounting software such as Tally/ Quick Books/ Peachtree/ ERP/ Generalized accounting software/ Excel/ and so forth among accounting professionals of SMEs in Oman were considered as vital contributors which lead to practical use of accounting software among SMES in Oman. So, this is consistent with the study of Nikoli et al. Information communication technology (ICT) has been used to enhance organizational performance and the reliability of accounting information (Ganyam and Ivungu, 2019; Ogundana et al., 2017; Sami, 2011). 2. Senft, S., Gallegos, F. and Davis, A.

(2020), The study of problems moving from the unified accounting system to the international accounting standards, International Journal of Multicultural and Multireligious Understanding, Vol. Moghavvemi, S., Hakimian, F., Feissal, T. and Faziharudean, T.M. 2, pp. (2020), Adoption of sustainable accounting practices among croatian SME's, KnE Social Sciences, Vol. 01-15. Tychalas, D. and Karatza, H. (2020), A scheduling algorithm for a fog computing system with bag-of-tasks jobs: simulation and performance evaluation, Simulation Modelling Practice and Theory, Vol. Undoubtedly, it is no secret that technology has evolved to the extent that no current business enterprise can operate without it (Huy and Phuc, 2020; Thottoli, 2020; Situmorang, 2020; Ramazani et al., 2012). 1530-1535. 1, 012021. 2, pp. (2020) and Maseko and Manyani (2011) say that because of lack in accounting knowledge, and as a consequence, there is inefficient use and entry of accounting transactions that will affect fairness of financial statements and its performance measurement. and Hunton, J.E. SME: Since there is no standard definition for SMEs, this research has taken on the following meanings of SMEs. (2020), Management accounting in the digital economy: evolution and perspectives, Improving Business Performance through Innovation in the Digital Economy, IGI Global, pp. Kapurubandara, M. and Lawson, R. (2006), Barriers Adopting ICT and E-Commerce with SMEs in Developing Countries: An Exploratory Study in Sri Lanka, 9 December, 2006, CollECTeR '06, Adelaide, available at: http://www.collecter.org/archives/2006_December/07.pdf (accessed 13 March 2008). Bashorun et al. 1. In addition, this research shows the empirical evidence of knowledge of accounting software effects on the adoption or use of accounting software among SMEs in Oman. 2, pp. Alhatabat, Z. 2-14. https://doi.org/10.1108/JIUC-04-2020-0005, Copyright 2020, Mohammed Muneerali Thottoli, Published in Journal of Industry-University Collaboration. 156-176. When compared to small-scale organizations, large-scale organizations set more weightage on the development of accounting information. To choose the required respondents for the survey, this study has used a purposive sampling method to make ease of estimation procedure (Teddlie and Tashakkori, 2009). 54, pp. 9 No. 121-221. 33 No. 3, pp. Another interviewee noted that, [] easy to generate report and track the account and analyze the data this is supported by Birt et al. 3, p. 223. 1, pp. Thus, this improved customized accounting software or ERP in SMEs will definitely improve their proficient way of handling daily recording of business transactions, the approach of accounting practices by SMEs and consequently improve the efficiency and effectiveness of SMEs accountants that will lead to generate automated fair financial statements and other related reports such as cash flow statements and budgetary report. Janvrin, D., Bierstaker, J. and Lowe, D.J. 244, p. 118712. (2020), Impact of financial inclusion on performance of banks in Nigeria, Fountain University Osogbo Journal of Management, Vol.

2, pp. 4, pp. Hernandez, A.A. (2020), Exploring the factors to green IT adoption of SMEs in the Philippines, Start-Ups and SMEs: Concepts, Methodologies, Tools, and Applications, IGI Global, pp. Knapp, K. (2019), U.S. Patent No. The primary finding increases the importance of ICT knowledge and use or adoption of accounting software by SMEs for accounting literature. 18 No. Moreover, it is suggested for future studies to apply quantitative methods such as case studies, specifically moderators, and each of the independent variables to better understand the customized accounting software in SMEs. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Damerji, H. (2020), Technology Readiness Impact on Artificial Intelligence Technology Adoption by Accounting Students, Doctoral Dissertation, University of La Verne. 2, pp. R1, for example, states, Making daily invoices prepare the general budget of the ministry and assist in facilitating the financial operations of the government by identifying monthly revenues and expenses and sending them to the ministry. Another interviewee (R2) reiterated the importance of knowledge of accounting software, Lack of knowledge of how to use advanced software are the barriers while using such accounting software. Likewise, this result is supported by Oduro (2020), Pillay (2016), who claim that lack of practical knowledge and thus unable to experience the potential benefits of latest technology and strategies to support and boost SMEs in achieving their business operational objectives is the major barrier to ICT adoption. 2, pp. Another view of Tychalas and Karatza (2020) and Arcega et al. This criterion is supported by studies of Ocampo et al. 98, p. 101982. Alternatively, other three of the respondents alleged and evidently claimed that there was direct relationship between the theoretical and practical knowledge which is required to adopt software for recording accounting transactions. When we asked them about the theoretical and practical knowledge about accounting software, three of the interviewees (professional accountants in SMEs) conclude that the use of computerized accounting software / ERP is easy since it reduces the work of preparing financial statements, budgets, cash flow statements and so on. 425-438. Information communication technology (ICT) has been considered as a major aspect of effective and efficient accounting system and which can leads to increase organizational performance drastically. Hassan, H. (2020), Factors influencing cloud computing adoption in small medium enterprises, Journal of Information and Communication Technology, Vol. Huy, P.Q. Maseko, N. and Manyani, O. Phyu, K.K. This provides SMEs to select the most appropriate generalized or customized accounting software package. 1 No. Another prominent interviewee opined that [] do not find a program that suits the level of a commercial project. The same has been mentioned by Birt et al. (2020), Alabdullah et al. 90-98. 8, pp. 2, pp. They suggested that the knowledge of Excel should be included in university accounting programs, since Excel is the most frequently utilized software / tool by majority SMEs. Accounting software is a major instrument in accounting information systems (AISs), offering timely, accurate and reliable information. 1065-1081. 267-284. The enhanced use of accounting software has changed the accounting process, which involves transactional entry, data storage and preparation of financial statements and related information, and has an impact on the decisions of stakeholders who use financial statements for various purpose. The latest updates should be incorporated in the accounting software as and when required. Nikoli, G., Vitenberg, V. and Karanovi, B. Idota, H., Bunno, T. and Tsuji, M. (2020), Impact of ICT on innovation: the case of Japanese SMEs, Disruptive Technology: Concepts, Methodologies, Tools, and Applications, IGI Global, pp. and Vongurai, R. (2020), Impacts on adaptation intention towards using accounting software in terms of technology advancement at work in Myanmar, AU-GSB e-Journal, Vol. and Cochran, J.J. (2020), Modern Business Statistics with Microsoft Excel, Cengage Learning, Boston, MA. 1-15. 792-815. Thottoli, M.M., Thomas, K.V.

(2019) and Rudzani and Manda (2016) identified in their study that SMEs are required to use IFRS and many of these organizations are finding it hard to adopt or incorporate IFRS for numerous reasons, including lack of available expertise. 1, pp. The accountant should acquire additional knowledge of accounting software and generalized enterprise resource plan (ERP) (Draijer, 2020) in order to ensure the companies accounts are recorded as per applicable accounting standards or International Financial Reporting Standards (IFRS). (2017) expressed their view that the usage of computerized accounting system has shown a marginal increase in profitability of banks compared with when banks were using manual system of accounting. 3, pp. Accountants have now been using generalized accounting software to do all the accounting tasks instead of using the traditional ways of accounting (Kumar, 2020), such as manual recording of accounting transactions and finalization of financial statements (Turner et al., 2020). Cadez and Guilding, 2008; Jalaludin et al., 2011) are in agreement with the results of the approach analysis; in the third phase of the discussion with interviewees, the participants were requested to comment on the results regarding the effect of knowledge of accounting software on various accountants who work in SMEs in Oman. 4 No. Likewise, this research has made an influential contribution to the literature regarding the influence of the knowledge of accounting software and the accounting professionals among various SMEs. 3, p. 5. 361-368. danya kluwer wolters apac Organization with less than 10 employees is considered as a micro organization or enterprise. (2011), E-accounting practices among small and medium enterprises in Ghana, Journal of Management Policy and Practice, Vol. One prominent professional auditor had strong reservations about the [] customize the new international standard of accounting require us to update the ERP and sometime that is not available which require us to change the ERP. Updating recent changes in accounting standards or IFRS in ERP software requires assistance from software vendors. 21 No. 4, pp.

12 No. A study in conducted by Moghavvemi et al. Birt, J., Chalmers, K., Maloney, S., Brooks, A., Oliver, J. and Bond, D. (2020), Accounting: Business Reporting for Decision Making, John Wiley & Sons, Hoboken, New Jersey. Amidu, M., Effah, J. and Abor, J. Omani students learn theoretical knowledge of basics of accounting. 11 No. Small business owners think that keeping accounting records are not required and gives less need or important to expose their financial position. 1, pp. 33 No. Boulianne, E. (2014), Impact of accounting software utilization on students' knowledge acquisition: an important change in accounting education, Journal of Accounting and Organizational Change, Vol. 44-61. The main role of accountant is to provide service for entry process financial transactions and generation of financial reports.

9 No. Also, this existing study may help assist the policymakers, especially by Ministry of Oman, tax authorities in Oman, higher educational institutions and government in particular, to set right and consider policies linked to the knowledge of basics of accounting and knowledge of use of accounting software or ERP. 1624-1651. 3 No. 1 No. (1998), New forms of assurance services for new forms of information: the global challenge for accounting educators, International Journal of Accounting, Vol. 10 No. Allen, W. (1999), The future of accounting education, Pacific Accounting Review, Vol. (2012), Competitive advantages through IT innovation adoption by SMEs, Socialins technologijos/Social Technologies, Vol. (2012), The ERP system impact on the role of accountants, Industrial Management and Data Systems, Vol. Chao, C.A.

This research would be useful to SMEs to enhance the knowledge and use of accounting software among accounting professionals, as the study findings indicated that accounting software and ERP significantly affect efficiency and effectiveness in the field of professional accounting. 1 No. Ganyam, A.I. Zhou, L. (2010), The research on issue and countermeasures of accounting information of SMEs, International Journal of Business and Management, Vol. Ashrafi, R. and Murtaza, M. (2013), ICT adoption in SME in an Arab GCC country: Oman, Small and Medium Enterprises: Concepts, Methodologies, Tools, and Applications, IGI Global, pp. The study has brought about a new discussion on the importance of information communication technology (ICT) knowledge and use or adoption of accounting software by SMEs for accounting literature. 127-143. Visit emeraldpublishing.com/platformupdate to discover the latest news and updates, Answers to the most commonly asked questions here, College of Economics Management and Information Systems, Does corporate governance predict firm profitability? (2005), Investigating the perceived threats of computerized accounting information systems in developing countries: an empirical study on Saudi organizations, Journal of King Saud University-Computer and Information Sciences, Vol. (2017), Comparative analysis of computerized accounting system and manual accounting system of quoted Microfinance Banks (MFBs) in Nigeria, International Journal of Academic Research in Accounting, Finance and Management Sciences, Vol. Mustafa, M.R. 25-33, doi: 10.21272/fmir.4(2).25-33.2020. 476-488. 28, pp. and Thottoli, M.M. 2 No. Lack of knowledge of how to use advanced software. Journal of Industry - University Collaboration, Article publication date: 2 December 2020. Araya-Leandro, C.E., del Carmen Caba-Prez, M. and Lpez-Hernndez, A.M. (2020), The process of modernization of the public accounting systems in the central American countries, Tools, Strategies, and Practices for Modern and Accountable Public Sector Management, IGI Global, pp. and Ahn, H.J. Jalaludin, D., Sulaiman, M. and Ahmad, N.N.N. There could be different causative factors for adoption of accounting software by SMEs which can be examined in further studies; there is a need for additional analysis to confirm these leads to different contexts. Jimoh, A.T., Shittu, A.T. and Attah, J.A. (2012) indicated that IT notion is taken as a powerful competitive tool in the recent economy and measures ERP post-adoption benefits on SME performance. Ramazani, M., Zanjani, M. and Vali, F. (2012), Accounting software expectation gap based on features of accounting information systems (AISs), Journal of Emerging Trends in Computing and Information Sciences, Vol.

Taiwo, J.N. This study explores the effect of knowledge of accounting software which leads to adoption of accounting software among SMEs in Oman. 13 No. 1-8.

2, pp. 1, 1717718, pp. Interviewees were able to express their views in detail and discussed numerous issues which they were assured would remain confidential. 1, pp. (2020), A review of researches on accounting in China brought by artificial intelligence, 5th International Conference on Economics, Management, Law and Education (EMLE 2019), Atlantis Press, pp. Chen, H.J., Yan Huang, S., Chiu, A.A. and Pai, F.C. Dalci, . and Tani, V.N.

581-609. Professional accountant should also have adequate practical experience to use generalized accounting software such as Tally, Peachtree and QuickBooks. (2011) opined that accounting function contributes an important role in the success or failure of any SME or modern business organization. and Besar, N.S.A. Turner, L., Weickgenannt, A.B. (2020), Impact of accounting software among SMEs accountants in Oman: financial markets, Institutions and Risks, Vol. Fowzia, R. and Nasrin, M. (2011), Appreciation of computerized accounting system in financial Institutions in Bangladesh, World Review of Business Research, Vol. In addition, accounting controllers think employing an ERP system leads to modifications in the role of accountants (Chen et al., 2012). 68 No. An empirical study in Oman, The International Journal of Accounting and Business Society. Andiola, Masters and Norman (2020) noted that accounting and auditing practitioners in their practicing areas require experience, analytic skills and data visualization skills. 11 No. Ashrafi and Murtaza (2008) in their study provided that only a very a smaller number of SMEs in Oman are aware of the available accounting software and its adoption. (2015) that computers provide accurate calculations and smart reports such as financial statements, cash flow statements and various budgets. (2015) emphasized that by using accounting software technology, SMEs can reduce their operating cost drastically and increase profitability marginally, thereby achieving competitive advantages. 9 No. 23 No. Current professional accountants use a wide range of computer applications to perform their day-to-day operational work (Do et al., 2020; Blankley et al., 2019; Boulianne, 2014). (2020), An emissions accounting framework for industrial parks in China, Journal of Cleaner Production, Vol. (2020) and Ashrafi and Murtaza (2013) in their study mentioned that it has been widely accepted that SMEs generally play a crucial role in a country's economy, and their role is the key to a country's economic stability to achieve targeted gross domestic product (GDP). 1, pp. Anderson, D.R., Sweeney, D.J., Williams, T.A., Camm, J.D. (2020) and Amanamah et al. This suggests the best way to enrich self-confidence in work environment. Jinga, G., Dumitru, M., Dumitrana, M. and Vulpoi, M. (2010), Accounting systems for cost management used in the Romanian economic entities, Accounting and Management Information Systems/Contabilitate si Informatica de Gestiune, Vol. 12, pp. (2015), The importance of record keeping to the growth of Small and Medium Scale Enterprises (SMEs) in Zimbabwe, Corporate Ownership and Control, Vol. 768-776. This means, the study has established a good professional experience with the interviewees to develop the quality of the interview questions and thus improve the analysis, and considered follow-up questions and explanations where required. Alabdullah, T.T.Y., Ahmed, E.R. Hence, improving the level of accounting policies and other related information of SEMS is essential (Yu et al., 2020; Wen, 2020; Zhou, 2010). (2020) highlighted that prior to the emergence of personal computers, companies used only manual approaches for recording accounting transactions which result in lack of fair financial data. (2020) and Amoako (2013) in their study found that the majority of SMEs fail to keep complete accounting records.

Nyathi, K.A., Nyoni, T., Nyoni, M. and Bonga, W.G. One of the interviewees expressed their concern about the use of accounting software requiring theoretical and practical knowledge of accounting standards or IFRS and accounting software in order to record day-to-day business transactions, Accounting software is a software designed specifically to help an accountant or entrepreneur. 1-7. 21-36. In addition, the researchers can study various other challenges current accounting professionals face in order to invent customized accounting software which can support recording of accounting transactions of SMEs and to generate budget reports and cash flow statements that could manage SMEs financial operations. and Dahiru, G. (2020), Cloud computing and academic libraries in Nigeria, Handbook of Research on Digital Devices for Inclusivity and Engagement in Libraries, IGI Global, pp. Alternatively, Ibrahim et al. Baporikar, N. (2020), Strategy for ICT adoption in SMEs, Handbook of Research on Increasing the Competitiveness of SMEs, IGI Global, pp. 121-135. Further, most SMEs outsource majority of their accounting services. Most of the SMEs are not maintaining complete accounting records. Do not find a program that suits the level of a commercial project. We still have a vast majority of SMEs in Oman using only books for recording their day-to-day accounting transactions. and Chandra, A. IT helps overcome the challenges of an accounting profession (Rndau, 2017). 1 No. 9 No. Wen, Y. (2017), Emerging information technologies in accounting and related security riskswhat is the impact on the Romanian accounting profession, Journal of Accounting and Management Information Systems, Vol. (2020) and Amahalu et al. Rudzani, S. and Manda, D.C. (2016), An assessment of the challenges of adopting and implementing IFRS for SMEs in South Africa, Problems and Perspectives in Management, Vol. 12 No. Initially, Ministry of Higher Education in Oman should ensure that the curriculum for graduating students includes proper theoretical as well as practical training on generalized accounting software.

and Maryanti, E. (2020), Does corporate governance predict firm profitability? 12 No. and Ivungu, J.A. The research is restricted to few variables that have a relationship with the operational practices of selected organizations under SMEs in Oman. This is supported by Hernandez (2020) and Ha and Ahn (2014) who pointed that factors such as competent internal ERP team, supportive top management, employees technical training, collaboration between interdepartment and communication, continuous improvement and continuous systems process integration/extension influence adoption of accounting software in SMEs. 13 No. Rndau, S.M. 16, pp.

Bui et al. 16 No. Ahmed, E.R., Alabdullah, T.T.Y., Thottoli, M.M. (2011), Accounting practices of SMEs in Zimbabwe: an investigative study of record keeping for performance measurement (A case study of Bindura), Journal of accounting and taxation, Vol. 1, pp. This paper contributes both theoretical and practical knowledge of accounting in accountants using generalized or customized accounting software and its relationship with accountant in various SMEs or such other organizations; it is an approach that is not widely discussed in the previous studies. Thottoli et al. 2 No. Prior to the 21st century, most organizations preferred traditional method of recording accounting transactions, which, of course, is very time-consuming and involves too much paperwork (Kumar, 2020). It is also essential that one should know the benefits of the application of rules in a given business environment. 529-537. (2019a, b, c) found in their study that ICT has a significant impact on the auditing practices. 75-98. 7 No. 33 Nos 7-8, pp. Based on practical experience and basic knowledge in the field of accounting, a total of six members are selected as the sample size for the study. (2020), Accounting Information Systems: Controls and Processes, John Wiley & Sons, Hoboken, New Jersey. Chhabra, K.S. 147-168. Ghasemi, M., Shafeiepour, V., Aslani, M. and Barvayeh, E. (2011), The impact of Information Technology (IT) on modern accounting systems, Procedia-Social and Behavioral Sciences, Vol. Amoako, G.K. (2013), Accounting practices of SMEs: a case study of Kumasi Metropolis in Ghana, International Journal of Business and Management, Vol. 649-656. 2, pp. 13 No. 7 No. Ogundana, O., Okere, W., Ayomoto, O., Adesanmi, D., Ibidunni, S. and Ogunleye, O. and Ahmed, E.R. 8 No. Besides, conducting such study in the field of SMEs gives novelty in the literature between SMEs and developing economies. 84-96. (2020), The effect of system quality and information quality on the satisfaction of user enterprise resource planning-system application and product in data processing (ERP-SAP) with perceived usefulness as a variable moderating in PTPN III (persero) unit of labuhan, International Journal of Public Budgeting, Accounting and Finance, Vol. Thottoli, M.M., Thomas, K.V. (2020), The impact of Public Sector Scorecard adoption on the effectiveness of accounting information systems towards the sustainable performance in public sector, Cogent Business and Management, Vol. 39-49. (2020), Ibrahim et al. 1 No. Over the years, scholars have also found some of the major difficulties faced by small and medium enterprises (SMEs) are incomplete records, lack of finance, staff inexperience, poor power supply, among others (Cpuneanu et al., 2020; Chhabra and Pattanayak, 2014). 9, pp. 3, pp. They also suggested that training programs must be organized to alert managers to understand the importance of maintaining proper books of accounts using computer. Imparting knowledge of the accounting software to the employees will be reinforced so that they use computerized accounting. Most of the SMEs lack internal capabilities, are unable to bear high implementation cost of IT in business and lack information about appropriate IT solutions and implementation, which were some of the main restrictions in adopting IT. Ibrahim et al. (2006), Sourcing of accounting: evidence from Belgian SMEs, Working Paper, Ghent University, Belgium, available at: http://www.FEB.UGent.be/fac/research/WP/Papers/wp_06_403.pdf fromhttp://proquest.umi.com/pqdweb?index=6&did=1194660571&Srch (accessed 15 October 2008). Wadesango, O.V. (2004), Benefits of computerized accounting information systems on the JIT production systems, ukurova niversitesi Sosyal Bilimler Enstits Dergisi, Vol. Damak-Ayadi et al. The findings revealed that the knowledge of accounting software has a significant effect on the use of accounting software, meaning that there is significant and positive relationship among the knowledge of generalized accounting software and the use of such generalized or customized accounting software by SMEs in Oman. 146-155. Usually, the result of the semi-structured discussions with respondents was consistent with and validated the qualitative findings presented, which found that all aspects (customized accounting software) had significant impact on practices among accounting professionals in various SMEs. The process of recording accounting transactions requires both theoretical and practical knowledge of accounting principles and accounting software. (2016), Information Technology Control and Audit, Taylor & Francis Group, New York.

3 No.

The professional accountant should have sufficient knowledge of various accounting software (Mustafa, 2020) to identify and post various items in ledgers, which comes under financial statements, and to ensure fairness of financial statement. (Eds) (2009), Foundations of Mixed Methods Research: Integrating Quantitative and Qualitative Approaches in the Social and Behavioral Sciences, Sage Publications. This accounting software or ERP should support majority of local SMEs in Oman. Thus, the objectives of this study are to examine the knowledge and use of accounting software among SMEs in Oman. 15 No. Teddlie, C. and Tashakkori, A. Further, this study emphasizes the usage and benefits of accounting software by accountants in various SMEs. 456-480. Ocampo, L., Alarde, R.M.B., Kilongkilong, D.A. 2, pp. Negative effects of the usage of accounting software are increased cost, lack of education on the benefits of the usage and lack of knowledgeable personnel. 1-23. Arcega, C.K., Datinguinoo, E., Guerra, J., Guno, C., Mayuga, H.J., Villamena, E. and Manongsong, J.L. In addition, the researchers can study various other challenges that current accounting professionals in SMEs face while using accounting software. 244-259. Accordingly, the accounting profession needs strong basic principles of accounting, especially in theoretical knowledge. (2020) and Everaert et al. 94-115. 158-161. (2020) and Ashrafi and Murtaza (2013), which found that the knowledge of accounting principles and accounting software leads to the adoption of accounting software in SMEs. (2018), The role of accounting information in the success of small and medium enterprises (SMEs) in Zimbabwe: a case of Harare, Journal of Business and Management (DRJ-JBM), Vol. and Ahmed, E.R. (2020) and Pulakanam and Suraweera (2010) analyzed and found that small businesses, while implementing small business accounting software, face many barriers, such as nonuser-friendly and non-availability of software vendors support and guidance (Bakr, 2020). According to interviews and literature review, this research identifies the variables to be analyzed, the knowledge of accounting software and use or adoption of accounting software among SMEs accountants.