Acta Electronica Malaysia (AEM) 7(2) (2023) 34- 37

Acta Electronica Malaysia (AEM)

DOI: http://doi.org/10.26480/aem.02.2023.34.37

ISSN: 2590-4043 (Online)

CODEN: AEMCDV

REVIEW ARTICLE

USE OF COMPUTERIZED ACCOUNTING SYSTEM OF SMALL, MEDIUM ENTERPRISES

IN CANDELARIA, QUEZON
Eugenia G. Magnaye

San Pablo Colleges, San Pablo City, Philippines

Corresponding Author Email: egmagnaye96@gmail.com

This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction
in any medium, provided the original work is properly cited.

ARTICLE DETAILS ABSTRACT

Article History: This study examined the adoption of computerized accounting systems by Small and Medium Enterprises
(SMEs) in Candelaria, Quezon. The study investigated the level of managers’ acceptance of using
Received 25 June 2023 computerized accounting information in connection with its functionality, reliability, usability, efficiency,
Revised 10 July 2023
Accepted 15 August 2023
maintainability, and portability. A descriptive correlational design was used to analyze the degree of
Available online 17 August 2023 relationship or association between variables. A total of 50 respondents from SMEs were selected using a
simple random sampling technique. Based on the hypothesis, there is no significant relationship between the
level of acceptance and the impact of accounting information systems that were rejected. The study found
that managers’ acceptance of CAS in functionality, reliability, usability, efficiency, maintainability, and
portability had a strong agreement, indicating the effectiveness of CAS in SMEs in Candelaria, Quezon. The
researcher suggested that SMEs in Candelaria, Quezon, should consider upgrading to high-end applications
that are more useful for their businesses. The results showed a strong relationship between managers’
acceptance of CAS and its effectiveness in SMEs in Candelaria, Quezon.
KEYWORDS
Accounting, Computerized Accounting, Small Medium Enterprises, Scope and Limitation.

1. INTRODUCTION systems and their perceptions of them. Users believe that using CAS will
bring them great rewards, and they feel comfortable using CAS for social
The Bureau of Internal Revenue initially implemented the computerized influence. The Most Important Factors Preventing Users from Using and
accounting system through RR No. 09-2009 for the year 2010 in the Improving CAS Process-ability and performance may improve each time
Philippines, where only major businesses are compelled to utilize this CAS is used (Nasrin and McMaster, 2010).
approach; up until this point, no law has been introduced to require small
to medium-sized businesses to use a computerized accounting system. The "CAS" computerized accounting system, has been in use since
Traditional invoicing and manual encoding of SMEs financial data have BATELEC I in 2003, known as the "service provider" where all documents
been an ordinary scenario in their daily operations. While some small and reports can be generated automatically. The use of CAS started when
businesses in Candelaria, Quezon, try to adapt the changes brought about one employee conducted research for the purpose of knowing the
by technology and use computerized accounting, others are still using the effectiveness of computerization and suggesting actions to improve it. The
traditional manual system. Investors, especially SMEs, need to understand employee researcher describes that they were using manual transactions
more about the necessity of using this technology because using Excel- coming from the source documents until they found the digitization of
based bookkeeping might delay the release of timely financial reports and BATELEEC 1 to be effective in terms of software usage, labor productivity,
expose them to human mistakes. usability, and security. However, at BATELEC, I can use standards and best
practices as a guide for software and system decision development
This study seeks to determine if non users SMEs in Candelaria, Quezon will (Catena et al., 2014).
accept the computerized accounting system. The study will also
determine the difficulties faced by business owners who have adopted Computerized accounting systems compatibly generate financial report
computerized accounting. In summary, this study aims to determine the results faster. Small business administrators should use one effective
degree of SME acceptability or openness to using the Computerized computerized accounting system to monitor and control short-term issues
Accounting System and the effects of its use to their businesses. such as Costs, Expenses, and Cash Flows (Sugut., 2015). We also help small
businesses operating in fast-paced and demanding markets through on-
2. REVIEW OF RELATED LITERATURE boarding, long-term organizational requirements, and growth strategies
(Ababa, 2019).
Based on the research explore how technology improves worker
productivity. Although the companies and concepts chosen were different, Small businesses benefit from CAS because it provides accurate, timely,
they were similar in terms of the types of tools used to bring about the and detailed financial information and accounting records that they can
desired change (Sioco and Narvacan, 2016). A number of attributes were use to assess the success of their current operations and prepare for
identified to examine the impact of users' use of computerized accounting improvement (Kumar, 2008). Performance by correcting errors in
previous action plans (Sinek et al., 2012). Integrating computerized

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Website: DOI:
www.actaelectronicamalaysia.com 10.26480/aem.02.2023.34.37

Cite the Article: Eugenia G. Magnaye (2023). Use of Computerized Accounting System of Small,
Medium Enterprises in Candelaria, Quezon. Acta Electronica Malaysia, 7(2): 34-37.
 Acta Electronica Malaysia (AEM) 7(2) (2023) 34-37

accounting systems into small business operations is critical to ensuring transactions to be quickly displayed in financial statements. computerized
effective efficiency and contributing to the national economy. This is accounting system: Journals, ledgers, reports, and statements in one
because it helps assess the feasibility of alternative courses of action and manual system. A computerized system easily integrates accounting
the status of companies in terms of profitability. Assets, Activities, functions and other basic tasks into the "behind-the-scenes" system.
Leverage, and Manufacturing financial decisions (Dirie, 2022). Companies can also generate reports, easier financial statements, and
improved performance management reviews (Kumar, 2008).
A study, Impact of Computerized Accounting Information System On Small
and Medium Enterprises In Mogadishu, Somalia, four surveyed balanced A computer is a programmable device that can operate automatically,
scorecards: (1) financial, (2) customer, (3) operational excellence, and (4) perform a series of calculations, or perform other operations on data
research and progress perspectives, has proven efficient and successful without human help. Data can be stored, retrieved, and processed
for small businesses by (Abdulle et al., 2019). Adoption of CAS was according to internal instructions. Computers can be digital, analogue, or
recommended due to its high benefits and low cost compared to financial hybrid, but most in operation today are digital express computers. A
statement analysis. Based on the article it is argued that this will lead to variable is a number, mostly binary; they are used for general purposes.
the separation of accounting duties, co-learning of accounting and Analog computers are built for specific tasks. Usually scientific or
tracking, calculation of large amounts of financial data, increased technical. The term "computer" is generally synonymous with digital
accountability and authority, and a better understanding of the current computers and refers only to business computers (Sirisilla, 2023). The
financial results of CAS-controlled companies (Bekele., 2017). It is main benefit of business accounting software is that the majority of the
suggested that it is proved by high reliability. We support the program is automated. Accounting errors occur when work is done by
improvement of the internal control systems of small and medium-sized hand. Reports empower leaders to make informed decisions, and
enterprises. In addition to this study CAS can quickly produce all forms of immediate access only increases the chances of success (Rashid, 2017).
management reports, including budget analysis and variance analysis.
This makes data collection and interpretation faster and more accurate, CAS eliminates all the multiple steps of manual systems with one entry.
enabling managers to make better decisions based on accurate and timely For example, when you create a check, it is automatically and
data (Abdulle et al., 2019). As stated in the study Computerized accounting simultaneously posted to your register and general ledger. account. You
systems can receive balance sheets, financial information, and other can create as many annual accounts as you like (Elmaleh, 2017).
accounting documents (Klau, 2015). He also agreed that a computerized
accounting system would help managers identify and solve problems Advances in information technology have finally led to the Introduction of
quickly. a computerized accounting system in company Reporting to create
relevant, truthful, and representative financial data Reporting for
The computerization of accounting methods has led to significant managers and external users for decision-making (Greuning, 2016). There
improvements in corporate performance. It is a fully automated are many benefits to using these computerized accounting systems.
implementation that combines financial, inventory, audit, and regulatory Corporate reporting is the "growth engine" of the corporate organization
processes with performance-enhancing capabilities (Kumar et al., 2009). (Frenzel, 2016). Computers are primitive; they are used as a productivity
The same study also suggests that computerized accounting systems will tool for office workers. It is the company’s ability to make these machines
improve an organization's access to information and decision-making and know-how available to its employees. It shows how effective the
while further improving connectivity (Victor, 2016). technique is. Analytical research on Computerization helped identify the
composition of the computerized accounting system ( Morley and Parker.,
2.1 Related Studies 2019).

As a result of information technology improvements, manual accounting 3. METHODS

methods have largely been replaced by computerized accounting systems
in corporate reporting, which helps to provide accurate and timely 3.1 Research Design
financial reports that can be used by management and other users to make
decisions (Greuning, 2016). Many people have come to the conclusion that The Descriptive research design used in this study is a powerful tool for
computerized accounting systems are the primary driver of growth in researchers to gather information about specific groups and phenomena.
company organizations due to the numerous benefits associated with their This type of research provides a detailed and accurate picture of the
use in corporate reporting. This was demonstrated by the many benefits characteristics and behavior of a particular population or subject. By
computerized accounting has over manual accounting, which necessitates observing and collecting data on a particular topic, descriptive research
the creation of all invoices, journal entries, and other financial records by helps researchers gain a deeper understanding of a particular problem,
hand. Users can enter data into accounting software using computerized providing valuable insights that will aid future research (Sirisilla, 2023).
accounting. Information is produced significantly more quickly by
computerized accounting systems than by manual accounting systems. 3.2 Locale of The Study
Databases that may be accessed by users are included in accounting
software products like Quick Books and Sage 50 Accounting. Mathematical The locale of this study is the desiccated coconut capital of the world, the
errors are common in manual accounting systems, as are incorrect Municipality of Candelaria, Quezon. It is the third-largest settlement in
numbers. A computerized accounting system automatically calculates firm Quezon Province, after Lucena City and Sariaya. Among Quezon province
statistics based on input numbers. communities, Candelaria has some of the driest coconut factories that
employ thousands, including Peter Paul Philippines Corporation, Primex
The cost of computerized accounting systems for large businesses can Coco Products Inc., Pacific Royal Basic Foods, Superstar Corporation, and
range from hundreds to thousands of dollars, according to a paper titled Tongsan Industrial Development Corporation. and a refinery.
Comparative Analysis of Computerized Accounting Systems and Manual
Accounting Systems of Quoted Microfinance Banks (MFBs) in Nigeria 3.3 Respondents
(Nestor, 2017). With the use of a computerized accounting system, the
The respondents to the study were 50 small and medium enterprise
number of hours that men spend producing financial statements and other
owners within the area of Candelaria, Quezon. The Researcher used a
reports could be decreased. This is the justification for small and medium-
descriptive research design to describe the different perceptions of all of
sized businesses' frequent use of computerized accounting software.
the respondents. The study entitled Usage of Automated or Computerized
Whenever using a computerized accounting system, reports are produced
Accounting Systems of Small and Medium Enterprises in Candelaria,
promptly. Managers can run the business more effectively thanks to the
Quezon has fifty (50) small and medium enterprise owners within the area
reports produced by computerized accounting software. Making reports
of Candelaria, Quezon. They have selected through the use of simple
in a manual accounting system could make employees more irritable and
random sampling to make sure that the whole population has an equal
force them to utilize out-of-date knowledge. Accounting documents stored
opportunity to respond to this study.
manually are readily lost or ruined, for example, by coffee spills. Yet,
because so many systems are backed up, documents kept by computers 3.4 Instruments
are probably safer. often. In the event that a paper pad's pages are
misplaced, businesses must do research and again write them in. A survey questionnaire will be the primary tool the researchers utilize in
Businesses just restore the most recent backup and add a few things to a this study to collect information about the Small and Medium Enterprises
computerized system that were not saved. Accounting software clearly in the study area. The survey questionnaire was chosen because the
outperforms manual techniques in this area. researcher thought it was the most trustworthy way to ensure that
respondents provided the required information without hesitation or fear.
All handwritten financial statements examined in paper books and manual Additionally, it is less expensive than other instruments.
spreadsheets were converted to a computer system, allowing individual

Cite the Article: Eugenia G. Magnaye (2023). Use of Computerized Accounting System of Small,
Medium Enterprises in Candelaria, Quezon. Acta Electronica Malaysia, 7(2): 34-37.
 Acta Electronica Malaysia (AEM) 7(2) (2023) 34-37

3.5 Significance of The Study enterprises. It aims to educate and advise SME business owners on how to
use automated or computerized accounting systems in light of rapidly
This research aimed to gain a better understanding of the usage of evolving technology.
automated or computerized accounting systems in small and medium

4. RESULTS AND DISCUSSIONS

Table 1: The level of manager's acceptance of using a computerized accounting information system in terms of portability:
Indicators Mean SD Interpretation
PORTABILITY 1 Financial reports are generated within minutes; 2.95 0.90 Agree
PORTABILITY 2 Compatible with other business software; 2.93 0.84 Agree
PORTABILITY 3 Accessible from different devices and locations; 3.19 0.89 Agree
PORTABILITY 4 Allows remote access to financial information; 3.20 0.84 Agree
PORTABILITY 5 Has a cloud-based option for data storage; 3.40 0.64 Strongly Agree
Overall 3.13 0.83 Agree

Legend: 1.0-1.74 Strongly Disagree 1.75-2.49 Disagree, 2.50-3.24 Agree, 3.25-4.00 Strongly Agree

Table 1 illustrates the level of portability that managers are willing to contributes to its portability. According to the study, developments in
employ in a computerized accounting information system. Strongly Agree information technology have finally made it possible to implement a
has the highest mean score for Indication 5, with a mean of 3.40 and a computerized accounting system in company reporting to produce
standard deviation of 0.64. While indicator 2 has the largest interpretation pertinent, accurate, and representative financial data reporting for
of agree (0.84 standard deviations) and the lowest mean of 2.93, The management and external users for decision-making (Greuning, 2016).
program or application is easy to use and access in all respects, which

Table 2: The level of manager's acceptance of using a computerized accounting information system in terms of reliability:
Indicators Mean SD Interpretation
RELIABILITY 1 Recording of data is consistent; 3.65 0.47 Strongly Agree
RELIABILITY 2 Provide accurate records; 3.63 0.47 Strongly Agree
RELIABILITY 3 Keep records for better compiling; 3.79 0.38 Strongly Agree
RELIABILITY 4 Reduce human errors in recording; 3.75 0.41 Strongly Agree
RELIABILITY 5 Able to view transactions; 3.78 0.40 Strongly Agree
Overall 3.72 0.43 Strongly Agree

Table 2 shows the level of managers' acceptance of using a computerized behind the widespread use of computerized accounting software by small
accounting information system in terms of reliability indicator 3, which and medium-sized firms. When using a computerized accounting system,
has the highest mean of 3.79 and a standard deviation of 0.38 with the reports are produced promptly. Managers can run the business more
interpretation of strongly Agree. While indicator 2 has the lowest mean of effectively thanks to the reports produced by computerized accounting
3.63 with a standard deviation of 0.47 with the interpretation of strongly software. Making reports in a manual accounting system could make
agree, with regard to the reliability of the application, the small and employees more irritable and force them to utilize out-of-date knowledge.
medium enterprise owners strongly agreed that the generated data from Accounting documents stored manually are readily lost or ruined, for
the said application was reliable and valid. example, by coffee spills. Yet, because so many systems are backed up,
documents kept by computers are probably safer. often. In the event that
A Comparative Analysis of Computerized Accounting Systems and Manual a paper pad's pages are misplaced, businesses must do research and again
Accounting Systems of Quoted Microfinance Banks (MFBs) in Nigeria write them in. Businesses just restore the most recent backup and add a
stated that for large firms, the price of computerized accounting systems few things to a computerized system. purchases that weren't saved.
can range from hundreds to thousands of dollars. Men's hours spent Accounting software clearly outperforms manual techniques in this area
producing financial statements and other reports could be reduced with (Nestor, 2017).
the adoption of a computerized accounting system. This is the rationale

Table 3: The impacts of CAS in terms of the quality of accounting reports

Indicators Mean SD Interpretation
QUALITY OF ACCOUNTING REPORTS 1 Provide real-time financial reporting; 3.19 0.72 Agree
Generate reports that meet legal and regulatory
QUALITY OF ACCOUNTING REPORTS 2 2.96 0.80 Agree
requirements;
QUALITY OF ACCOUNTING REPORTS 3 Generates report easy to understand and interpret; 3.04 0.94 Agree
QUALITY OF ACCOUNTING REPORTS 4 Allows customize financial reporting; 3.20 0.84 Agree
QUALITY OF ACCOUNTING REPORTS 5 Generate accurate and detailed financial reports; 3.50 0.64 Strongly Agree
Overall 3.18 0.79 Agree

Table 3 illustrates the effects of C.A.S. on the timeliness and quality of program is credible and genuine and that they can be used as the
accounting reports. Indicator 5 has the highest mean of 3.50 and the foundation for various reports. With a single entry, CAS replaces all the
strongest interpretation of strongly Agree, with a standard deviation of many processes of manual systems. For instance, when you create a check,
0.64. While indicator 2 has the lowest mean of 2.96 and the lowest it is automatically and concurrently posted to your register and general
standard deviation of 0.80 with an interpretation of agree, some of the ledger account.
respondents concurred that the caliber of the reports produced by the

Cite the Article: Eugenia G. Magnaye (2023). Use of Computerized Accounting System of Small,
Medium Enterprises in Candelaria, Quezon. Acta Electronica Malaysia, 7(2): 34-37.
 Acta Electronica Malaysia (AEM) 7(2) (2023) 34-37

Table 4: The challenges encountered by small and medium enterprises

Indicators Mean SD Interpretation
PRODUCTIVITY 1 Requires significant investment in hardware and software; 3.43 0.57 Strongly Agree
PRODUCTIVITY 2 It is prone to viruses and malware; 3.30 0.51 Strongly Agree
PRODUCTIVITY 3 Required training and hiring of specialized staff; 3.65 0.47 Strongly Agree
PRODUCTIVITY 4 Requires significant customization to meet specific business processes; 3.41 0.57 Strongly Agree
PRODUCTIVITY 5 May face compatibility issues with other business software; 3.63 0.47 Strongly Agree
Overall 3.34 0.52 Strongly Agree

Table 4: Indicator 3 had the greatest mean of 3.65 and the highest standard Management Accounting Magazine.
deviation of 0.47, with a Strongly agreed assessment of the issues faced by
small and medium firms. While indication 2 has the lowest mean of 3.30 Dirie A. N., 2022. The Status Of Computerized Accounting System Adoption
with a 0.51 standard deviation and a Strongly agreed interpretation, there By Small Enterprises In Mogadishu, Journal of Positive School
is a negative influence of this program on the owners of small and medium- Psychology, Pp. 1755-1766
sized businesses nowadays, with everyone defending technology; thus, it
is crucial that the owners have a greater understanding of the said Elmaleh, M., 2017. Cost Saving from Computerized Accounting are Not
program. Computers are rudimentary tools used by office workers to What They Should Be
increase productivity (Morley and Parker., 2019).
Frenzel, C. W., 2016. Management of Information Technology
5. CONCLUSIONS Greuning, 2016. https://hnars,com/papers_submitted2787
Article_04_Comparative_Analysis of
The level of managers' acceptance of using a computerized accounting
Computerized_Accounting_System.pdf
information system in the following sub-variables, portability, has an
overall interpretation of strongly agree. It indicates that managers in SMEs Klau, R. O., 2015. No TitleÉ?Ekp, 13(Pg9604013). Klau, R. O. (2015). No
in Candelaria, Quezon, accept the advantage of using a computerized Title E? Ekp, 13 (Pg 9604013)
Accounting System. While the impact of computerized accounting
information systems on the following sub-variables, such as quality of Kumar, R., 2008. Information and Communication Technologies,
accounting reports and productivity, has an overall interpretation of University Science Press, New Delhi. ISBN: 978-81-381-0519-0,
agree, based on the impact of CAS on small and medium enterprise
owners, they all agreed that all of the data generated from the program is Kumar, R., Kapil A. K., Kumar V., Yadav, C. S., 2009. Modeling and
reliable and valid. Simulation Concepts, University Science Press, New Delhi, ISBN: 978-
81-318-0696-8
RECOMMENDATIONS
Morley, D., Parker, C.S., 2019. Understanding computers today and
• Upgrade the high-end application that will be more helpful for small tomorrow, 12th Edition.
and medium enterprises' businesses.
Nasrin, McMaster, M., 2010. Pierre-François Ouellette Art Contemporain
• If possible, make a feasibility study before utilizing different Inc. https://www.pfoac.com/en/artists/32-meryl-
applications in business. mcmaster/works/1-oeuvres-disponibles-available-works/218-
• Since this study was focused more on "what" concerns, a similar meryl-mcmaster-nasrin-2010/
study may be conducted concentrating on the "how" and "why"
concerns, which are not yet addressed. Rashid, J., 2017. What Are the Benefits of Computerized Accounting
Systems? March 16, 2017
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Cite the Article: Eugenia G. Magnaye (2023). Use of Computerized Accounting System of Small,
Medium Enterprises in Candelaria, Quezon. Acta Electronica Malaysia, 7(2): 34-37.