Impact of accounting software on business performance of listed companies in Sri Lanka

Abstract

Purpose: Adoption of Accounting Software becomes key factor in determining the survival and success of an organization. The objective of this paper is to investigate the impact of Accounting Software on Business Performance of Listed Companies in Sri Lanka Design/methodology/approach: This study employed a quantitative research approach, distributing 70 questionnaires and receiving 34 responses. Using a random probability sampling method, the target population consisted of accountants or users of accounting software in Sri Lankan listed companies. Data analysis included five statistical methods: Descriptive Analysis, Normality Analysis, Reliability Analysis, Exploratory Factor Analysis, and Multiple Regression. Findings: The result indicates the Efficiency has significant impacts on business performance. Meanwhile, the other four characteristics which are Reliability, User Friendly, Data Quality and Accuracy are not found to have a significant impact on business performance. Overall, the results indicate that accounting software has an impact on business performance. Practical implications: This study is significant to the firm’s owners and manager in understanding the importance of using Accounting Information System (AIS) derived from Accounting Software to achieve the business performance. The findings of this paper will help the accounting software developers to develop a new software that fulfill the needs of user’s and also it will benefit the firms that acquire appropriate accounting software. Originality value: This study offers original insights into how accounting software influences business performance in Sri Lanka’s listed companies. The findings provide valuable insights for business owners and software developers, guiding future enhancements.