Effect of Automated Accounting Software on the Efficiency of Nigerian SMEs’ Financial Operations
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- April 12, 2025
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Nwankwo, P. E.1, Igwe, A. O.2 & Nnamani, C. O.3
1 2 Department of Accountancy, Enugu State University of Science and Technology, Enugu State, Nigeria
3 Department of Accountancy, University of Nigeria, Enugu Campus
Abstract
This study investigates the effect of automated accounting software on the efficiency of financial operations in Nigerian SMEs. The study aims to assess the impact of automation on the accuracy, reliability, timeliness, and overall efficiency of financial reporting, as well as to identify the challenges SMEs face in adopting such systems. A survey of 370 respondents from various SMEs across Nigeria was conducted, utilizing descriptive and inferential statistics for analysis. The findings show that automated accounting software significantly improves the accuracy and reliability of financial reporting, with a mean score of 4.20, a t-statistic of 20.45, and a p-value of 0.000, leading to the rejection of the null hypothesis. Similarly, it was found to significantly enhance the timeliness and efficiency of financial operations, with a mean of 4.15, t-statistic of 19.85, and p-value of 0.000. Additionally, the study highlights significant challenges in the adoption and implementation of automated accounting software, with a mean of 4.10, t-statistic of 18.73, and p-value of 0.000, suggesting that SMEs face considerable obstacles. Based on these results, the study recommends that SMEs explore more affordable software solutions, invest in regular training for staff, and implement change management strategies to foster the successful adoption of automated accounting software. This research provides important insights for SMEs in developing economies and offers practical recommendations to enhance the effectiveness of automated accounting software in improving financial operations.
Keywords: Automated Accounting Software; Financial Operations; Nigerian SMEs; Financial Operations
Cite as:
Nwankwo, P. E., Igwe, A. O. & Nnamani, C. O. (2025). Effect of Automated Accounting Software on the Efficiency of Nigerian SMEs’ Financial Operations. Global Journal of Auditing and Finance, 7(1), 1-17. https://doi.org/10.5281/zenodo.15193261 © 2025 The Author(s). Global Journal of Auditing and Finance published by ACADEMIC INK REVIEW.