Influence of digital accounting system on small and medium scale enterprise performance in Plateau state, Nigeria

Abstract

A digital accounting system serves as an essential tool for organizations, aiding in the meticulous management of business finances. By simplifying data recording, storage, and analysis, it minimizes the potential for human error. Furthermore, it streamlines administrative tasks through automation, liberating valuable time for firms to allocate resources to other operational facets. This study investigated the influence of digital accounting system on small and medium scale enterprise performance in Plateau State, Nigeria. Employing a survey research design, 500 SMEs were randomly selected across Plateau and administered structured questionnaires. The data obtained underwent analysis via simple linear regression. The findings of the study revealed that digital accounting system had significantly influenced the performance of small and medium enterprises in Plateau state. Therefore, poor performance of SMEs in Plateau state which increases the rate of unemployment in the state can be addressed and thereby boosting the contribution of SMEs in the state to employment through proper orientation of digital accounting system to owner/managers of SMEs operating in the state. This study recommends that Plateau state government through the appropriate regulatory agency such SMEDAN should organize a seminars and workshop on regular basis to registered SMEs operating in the state on adoption of digital accounting system in financial records.