COMPUTERIZED ACCOUNTING SYSTEM AND PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN BAUCHI METROPOLIS

Abstract

 ABSTRACT

This study examines the effect of computerized accounting systems (CAS) on the performance of small and medium enterprises (SMEs) in Bauchi metropolis, Nigeria, with particular focus on the roles of cost and technology. The increasing integration of digital technologies into accounting practices has transformed how businesses record, process, and report financial information, thereby improving efficiency and decision-making. Despite these advantages, many SMEs in developing economies continue to face challenges in adopting CAS due to financial and technological constraints. This study adopts a survey research design, with data collected from a sample of 339 SME operators selected from a population of 2,241 registered businesses using a simple random sampling technique. Structured questionnaires were employed to gather data, which were analyzed using descriptive statistics and Ordinary Least Squares (OLS) regression analysis. The findings reveal that both cost and technology have significant effects on SME performance. similarly, technology demonstrates a positive and significant influence on performance, indicating that the use of advanced accounting systems enhances accuracy, reduces errors, and supports timely decision-making. The regression results further confirm that the independent variables jointly explain a substantial proportion of the variation in SME performance. It recommends that government and stakeholders provide financial support and promote capacity-building initiatives to enhance CAS adoption among SMEs. This will enable businesses to leverage digital accounting tools for improved productivity, sustainability, and competitiveness in a rapidly evolving business environment.