Abstract

Given the volume and complexity of business transactions in recent times, the introduction of personal computers has resulted in significant improvements in how they are processed. However, this pattern does not appear to be true for small and medium-sized enterprises, particularly in developing countries such as Cameroon, resulting in an ineffective and inefficient information flow in the recording, processing, and analysis of financial data.

The researcher is therefore interested to assess the effects of such computerized accounting systems on the financial reporting of these small and medium sized enterprises in the Buea Municipality. Specifically, the study sought to identify the extent to which accounting systems (CASs) have been embraced by SMEs in the Buea Municipality; explore the various accounting software packages; examine the role played by CAS in financial reporting of SMEs and investigate the most common threats to a computerized accounting system affecting SMEs in the Buea Municipality.

The study used structured questionnaires to sample 100 respondents using simple and random sampling techniques to achieve these goals. In SPSS, collected data were analyzed using descriptive statistics, and hypotheses were tested using regression (25.0). The results of the study show that 61.7% of small and medium sized enterprises in the Buea Municipality have adopted computerised accounting systems.

The accounting packages widely used though with limited features are Sage and QuickBooks and they are used in the midst of many challenges. Though there is a limited use of computerized accounting packages, this study reveals that computerized accounting packages play a significant role in running small and medium sized enterprises in Buea Municipality; there is speed improvement in handling transactions, accuracy, error reduction on the financial statement, simplification of the recording procedure, data security, payment of salaries of employees and deduction of taxes.

Based on these findings, the study suggested that SMEs should embrace computerized accounting systems and fully utilize all the features that the packages offer. It is also recommended that the government should supervise the building of a generalized accounting package that takes into consideration the OHADA system of accounting used in Cameroon and together with academic institutions join in the sensitization campaign using conferences, seminars, and workshops.

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