Description
ABSTRACT
A group of experts of national administrations from Member States and
business organisations analysed various accounting systems applied by sole
proprietorships/traders and partnerships with unlimited liability to identify how
these accounting systems meet the actual needs of these small enterprises.
The objective of this project was to come forward with views on how to
improve the accounting systems of small enterprises so that they can provide the
owners, managers and other stakeholders with appropriate financial
information. This was achieved through the identification and exchange of
views in the area of accounting systems of small enterprises in Member States.
The purpose was in no way to add regulation or administrative burdens at
Nigeria or national level, which would be contrary to the aim of simplifying the
business environment for small enterprises and reducing administrative burdens;
therefore proposals to change the accounting legislation at Nigeria level were
beyond the scope of this project.
On the basis of collected data from Member States on applied accounting
systems in small enterprises, the experts suggested a number of good practices
for the accounting systems which may be considered appropriate for small
enterprises according to their particular circumstances and needs.
This study explores the e-accounting practices among SMEs in Nigeria. The
study also looks at the expectations, realities and barriers in adopting e-
accounting. The research design is based on a survey methodology using a
sample of systematically selected SMEs throughout the country. The findings
reveal that SMEs put in place accounting softwares to generate their financial
information. The main value of this paper is the discussion of e-accounting
practices of SMEs in Nigeria.
TABLE OF CONTENTS
Title page
Approval page
Dedication
Acknowledgement
Abstract
Table of content
CHAPTER ONE
INTRODUTION
1.0 introduction
1.1 background of study
1.2 aim of study
1.3 Research questions
1.4 desk research
1.5 objectives of the study
1.6 research question
1.7 statement of problem
1.8 research hypothesis
1.9 significance of study
1.9.1 Scope of the study
1.9.2 Plan of the study
CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
2.2 Meaning of small and medium scale industry
2.3 Government policy
2.4 Support systems
2.5 Financing
2.6 Monetary policy development in favour of small and medium scale
enterprises
2.7 Benefits of small and medium scale enterprises
2.8 Problems facing small and medium scale enterprises
2.9.1 Financing the project
2.9.2 Technical knows how
2.9.3 Personnel, matters and general administration
2.10 Improving funding small and medium scale industries
References
CHAPTER THREE:
METHODOLGY
3.0 research methodology
3.1 study on accounting requirements for SMEs
CHAPTER FOUR:
PRESENTATION AND ANALYSIS OF DATA
4.1 data analysis
CHAPTER FIVE
CONCLUSIONS AND RECOMMENDATIONS
5.1 Conclusion
5.2 Recommendation
5.3 Bibliography
CHAPTER ONE
1.0 INTRODUCTION
Accounting plays a critical role in the success or failure of contemporary
business institutions.
Accounting systems are responsible for recording, analysing, monitoring and
evaluating the financial condition of companies, preparation of documents
necessary for tax purposes, providing information support to many other
organizational functions, and so on. Prior to the advent of personal computers,
businesses were limited to manual methods for keeping track of financial data.
According to Tavakolian (1995), the manual accounting systems consisted of
paper ledgers, typewriters and calculators.
Typewriters were used to type invoices and cheques, and all calculations were
performed using calculators. However, with this system it was possible for
errors to be introduced into the data since they could go undetected for quite
some time. Like many other industries, the accounting industry changed with
the arrival of personal computers. A computerized accounting system is able to
handle financial data efficiently, but the true value of an accounting system was
that it was able to generate immediate reports regarding the company. What is
therefore e- accounting practice?
E-Accounting refers to Electronic Accounting, a term used to describe an
accounting system that relies on computer technology for capturing and
processing financial data in organizations. In the literature, two more terms have
been used to describe E- accounting: computer-based Accounting System and
Accounting Information System (AIS). Stefanou (2006) observed that although
accounting information system does not require a computer to function, the
computerisation of the accounting function, the term AIS is used primarily to
denote the computer-based AIS. In this study the terms E-Accounting and
financial information system are used to refer to any accounting system that
depends on Information and Communication Technology (ICT) for performing
its information system functions.
Unlike other information systems, Accounting was one of the first functional
areas to benefit from computerization when computers were initially introduced
to organizations (Doost, 1999). Furthermore, Tavakolian (1995) noted that an
accounting package is usually one of the first major computer packages that a
company purchases and it is one of the two business applications often used,
with word processing being the other. It should not be a surprise because
Accounting plays a very significant role in the performance of organizations.
According to Stefanou (2006) the primary purpose of an accounting information
system (AIS) is the collection and recording of data and information regarding
events that have an economic impact on organisations and the maintenance,
processing and communication of such information to internal and external
stakeholders. The information is used for the evaluation of the financial position
of the organization and for decision-making purposes.
Despite the significance of E-Accounting and its widespread use, there has been
relatively little research in the area. Stefanou (2006) noted that a number of
authors in various countries share similar views on the lack of research in the
area of AIS. This study therefore contributes to filling the gap by exploring the
adoption and use of E-Accounting in Nigeria.
The specific objectives are to assess the state of the art of e-accounting systems
use among Small and Medium Enterprises (SMEs) in Nigeria, and to examine
the benefits and obstacles facing SMEs in the adoption of e-accounting systems.
The rest of the paper is structured as follows: Section two discusses the extant
literature. Section three describes the methodology used. Section four discusses
the results of the study and finally section fives concludes the study.