Accounting Information System and Financial Performance of Small and Medium Scale Enterprises in Taraba State, Nigeria

Abstract

This study examined the effect of accounting information systems on the financial performance of small and medium scale enterprises (SMEs) in Taraba state. Adopting a survey research design to define the structure and strategy of the study, the target population were registered SMEs in Taraba state, as of 31^st December 2020, which were 466 SMEs. Out of the 466 SMEs, 60 were systematically selected as a sample. The required data were collected using a structured questionnaire and were analyzed using ordinary least square and regression analysis statistical tools. The result of the analyses revealed that; accounting information systems such as manpower, internal control system and information and communication technology have a positive and significant effect on the sales growth of the selected SMEs in Taraba state throughout the study. Therefore, the study recommended that SMEs owners in Taraba state should learn to maintain basic accounting records, and adopt the use of information and communication technology while ensuring effective internal control systems since were found to have a positive and significant effect on the sales growth of the businesses.