Abstract: The study was guided by four objectives: to establish the effect on quick books accounting systems on financial performance, to assess the effects of sage accounting systems on the decision making, to establish the effect of pastel accounting systems on financial reporting and to establish the effects of tally accounting systems on SME’s in Bomet County. The study was guided by the decomposed theory of planned behavior, the theory of reasoned action and the theory of innovation. This study was based on epistemology. This study adopted a descriptive survey research design which is used in preliminary and exploratory studies to allow researchers to gather information, summarize, present and interpret for the purpose of clarification. The study populations were all the 1200 SME’s business community in Bomet County. The target group was drawn from top level management. The study adopted a stratified random sampling technique to come up with the required strata’s in the geographical locations. The study used a sample of 254 respondents. The questionnaires were the main instruments of data collection that were used. The questionnaires were administered by the researcher personally using drop and pick later method. Reliability of the instrument was enhanced through a pilot study. Based on the findings the study recommends that the management should have a strategic master plan from which the accounting systems are phased in line with the organizational financial ability and implemented in line with the strategic plan for the successful performance of the SMEs. Further the management to increase more staff to bridge the deficiency of the accounting staff. The SMEs should establish amicable ways to control political interference and put in more permanent governance structures to be sought with clear roles and authority among the management of the SME’s.The study established that the planning of accounting processes existed in the SME’s. However, this process was mainly done by the management and consultants with consultation of some senior staff which left out other staff and stakeholders. The study recommends that the management of the SMEs make this process inclusive by wide sampling both vertical and horizontal of their staff and all key stakeholders. Further the study established that even through the SMEs implemented computerised accounting systems, they inter-departments never had their own strategic plans with the exception of some departments only. The study recommends that all the SMEs should develop and implement their accounting systems in line with the organizations strategic plans which will enhance achievement of the organizational goals. The study also revealed that respondents describe the implementation process as poor due to the fact that the systems are never reviewed. The study recommends that the SMEs should review their level of and departments’ level to ensure the success of the implementation process. Due to the fact that there are challenges are not limited to SMEs in Bomet County alone, the study recommends that the management of other public and private or global organizations can adopt the findings of the study and bench mark their strategies with those of SMEs in Bomet County.
Keywords: Effects, Accounting System, Small Medium Entreprenuers.
Title: EFFECTS OF COMPUTERIZED ACCOUNTING SYSTEM ON THE PERFORMANCE OF SMALL MEDIUM ENTERPRISES: A CASE OF BUSINESS COMMUNITY IN BOMET COUNTY
Author: NG’ENO KIPKEMOI PETER, DANIEL KAMAU, DR KEPHA OMBUI
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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