EFFECTS OF ACCOUNTING INFORMATION SYSTEM ON THE SUSTAINABILITY OF SMEs IN LAGOS STATE, NIGERIA

Abstract

The paper investigates the effects of accounting information systems on the sustainability of SMEs in a competitive environment. SMEs are known for inconsistent information preparation and presentation due to their lack of accountability skills the paper adopted a survey research design. However, the objectives of the paper are the investigation the relationship between the accounting information technology and decision making of SMEs; establish the relationships between the manual accounting system and the sustainability of SMEs, and examine the influence of the manual accounting system on accounting information of SMEs. Two research hypotheses were formulated and tested statistics tools such as regression and correlation tests and research questions formulated in line with the objective stated were formulated to achieve the aim of the study. Two hundred and ten copies (210) of a purposely designed questionnaire were distributed to the selected SMEs in Lagos state as of 31 December 2021 and analyzed using regression and correlation tests. Findings showed that there is a significant relationship between accounting information technology and the decision-making of SMEs. Also, there exists a significant relationship between the manual accounting system and the sustainability of SMEs in a competitive environment. The paper concludes that the application of accounting information systems significantly enhances the survival of SMEs in a competitive environment and should be harmonized with manual accounting systems. It was however recommended that software and hardware technologies should be used complementarily to generate quality accounting information for SMEs' decisions in Lagos State, Nigeria.