Foreign Studies

According to Trabulsi, There is evidence that implementing an AIS has a considerable impact
on organizational performance in general and on all of its dimensions, such as cost
containment, quality improvement, and decision-making efficiency.

According to the findings of this study, SMEs who use AIS for bank and financial management
have improved performance indicators.

According to Arredondo, Realyvásquez, and Escobedo (2019), firm performance determines

how effectively and efficiently managers use resources to serve consumers and accomplish
organizational objectives. Accounting information systems are conceptually closely tied to
business performance. Since accounting information systems have a quality system as one of
their dimensions, information quality, system threats, and system performance all contribute to
quality information that improves decision-making, effectiveness, cost effectiveness, and overall
firm performance.

According to evidence from several studies, financial accounting for SMEs has continued to
serve as the primary information source for their management ( Adenike, 2017).

Emad (2017) used the contingency theory to explain the effects of accounting information
systems on the accounting performance of SMEs in Iraq. He came to the conclusion that in
order to improve performance, managers should pay close attention to how they use accounting
information systems and take care to adopt the systems that are best tailored to their unique
circumstances.

Accounting information systems are essential for creating high-quality accounting data,
delivering accurate and timely reports, and communicating that data to decision-makers.

In an additional study, Emad (2017) looked into the accounting performance of SMEs and the
impact of the accounting information system in Iraq. He led to the realization that effective
accounting information systems assure that all levels of management receive satisfactory,
adequate, all-important, and accurate information for planning, boost control, and improve
accounting performance in SMEs. Additionally, they offer a chance to modernize processes,
match them with regarded best accounting performance examples, enhance SMEs' strategic
efforts, and enhance data exchange and integrity.

In the Middle East, a study was conducted on the effect of accounting information systems on
the operational performance of Saudi SMEs (Trabulsi, 2018). It was discovered that AIS should
receive more attention as a technique for improving organizational performance. This seems
essential to gain a competitive edge in a highly competitive and alluring organizational
environment like SMEs.
Accounting information systems serve an useful and necessary role by adding information that
may enable the management of the company to fully fulfill its duties and obligations. The quality
of an organization's accounting information systems determines whether it will succeed or fail in
meeting its goals, according to numerous researchers (Algrari and Ahamed 2017).

In their 2017 study, Algrari and Ahamed looked at the effect of Accounting Information System
Quality on Asia Cell Telecommunication Company's accounting information quality on the Iraqi
stock exchange. The findings show a strong correlation between the accuracy of the accounting
information systems and the accounting data for Asia Cell Telecommunication Company. They
had faith that the operations of Asia Cell Telecommunication Company benefits entirely from
accounting information systems.

Information systems are defined by Borhan and Bader (2018) as the organization of conceptual
and physical objects, as well as records, structures, rules, applications, roles, and other
processes that specify the capabilities of an organization. By planning, organizing, directing,
leading, and regulating operations inside an organization, an information system provides useful
statistics for better decision-making.

According to Kashif (2018), an accounting information system is made up of a variety of

individuals, pieces of machinery, rules, and guidelines that all work together to gather data and
turn it into usable information. In order to support the activities of employees, owners,
customers, and other stakeholders in the organization's environment, AIS is a system that
effectively and promptly supplies information to authorized people. This information can be data
or information pertaining to an organization's operation.

In light of this, accounting information systems are a valuable asset for a company. a noise
Accounting information systems will increase productivity, competence, and client satisfaction.
Additionally, it will make the organization's decision-making process easier. The administrators
of the company must, however, regularly support the use of its accounting information systems.
Similarly, investors and stakeholders could handle their finances in a more efficient, timely, and
appropriate manner by using the accounting information system (Fatima et al., 2021).

However, several research claimed that AIS has an unintended effect on the auditing process.
Information technology has an indirect impact on the auditing profession in terms of
methodologies, processes, and mechanisms, according to Kamil and Nashat (2017).

Hernandez (2020) claimed that the success or failure of any SME or contemporary company
organization is significantly influenced by the accounting function.

AISs are useful for documenting accounting transactions, assessing, monitoring, and analyzing
financial accounts of any organization, according to Ibrahim et al. (2020).

According to Jimoh et al. (2020), banks' profitability has only slightly increased since switching
to computerized accounting systems from manual accounting systems.
Hassan (2020) and Ahmed et al. (2020) noted that SMEs can use accounting software
technology to dramatically cut their operational costs and slightly boost profitability, giving them
a competitive advantage. Since Excel is the most often used software / tool by the majority of
SMEs, they urged that it should be incorporated in university accounting curricula.

In their study, Ibrahim et al. (2020) discovered that the majority of SMEs don't maintain accurate
accounting records. Small business owners believe that maintaining accounting records is not
necessary and that disclosing their financial situation is not as crucial. They also recommended
that training programs be set up to inform managers of the need of keeping accurate books of
accounts on computers.

Foreign Literature

Prior to the development of personal computers, Bashorun et al. (2020) pointed out that
businesses primarily utilized manual methods to record accounting transactions, which resulted
in a lack of accurate financial data.

According to Anderson et al. (2020) and Thottoli (2020), the majority of small firms view the
usage of Excel in accounting areas including audit, tax, advice, and corporate as significant.
Additionally, it was noted that a variety of accounting sectors and degrees of practical
knowledge frequently use accounting / ERP software, Adobe Acrobat, PowerPoint, and the
FASB Codification. Accounting and auditing practitioners in their practice areas need
experience, analytic capabilities, and data visualization abilities, according to Andiola, Masters,
and Norman (2020). These are crucial, but data analysis abilities outweigh data visualization
abilities.

According to Birt et al. (2020), computers can provide sophisticated reports including financial
accounts, cash flow statements, and other budgets as well as precise computations.

The majority of SMEs, according to Birt et al. (2020), employ single-entry accounting and record
their transactions in books or MS Excel.

References:
Rehab U. Trabulsi, 2018. "The Impact of Accounting Information Systems on Organizational
Performance: The Context of Saudi’s SMEs," International Review of Management and
Marketing, Econjournals, vol. 8(2), pages 69-73 from https://ideas.repec.org/a/eco/journ3/2018-
02-10.html#:~:text=Findings%20proof%20that%20using%20an,quality%20and%20effective
%20decision%20making

https://www.researchgate.net/publication/
270045492_The_impact_of_Accounting_Information_Systems_AIS_on_performance_measure
s_empirical_evidence_in_Spanish_SMEs

Arredondo, K. C., Realyvásquez, A., & Escobedo, G. H. (2019). Trends in Macroergonomics

Applications for Improved Work Systems. Mexico: Works Publishers.

Adenike, A. T. (2017). Accounting Information Systems and Decision Making. European Journal
of Accounting, Auditing and Finance Research

Emad, H. (2017). Accounting Performance of SMEs and Effect of Accounting. Global Journal of
Management and Business Research

Trabulsi, R. U. (2018). The Impact of Accounting Information Systems on Organizational

Performance. International Review of Management and Marketing, 69-73.

Algrari, A. Y., & Ahamed, R. M. (2017). The impact of Accounting Information Systems’ Quality
on Accounting Information Quality. 10-20.

Borhan, O., & Bader, O. (2018). Investigating the Impact of Accounting Information System
on the Profitability of Jordanian Banks. Research Journal of Finance and Accounting, 9(18),
110-118

Kashif, B. (2018). Impact of Accounting Information System on the Financial Performance of

Selected FMCG Companies. Asian Journal of Applied Science and Technology, 2(3), 8-17.

Fatima, S., Ishtiaq, M., & Javed, A. (2021). Impact of accounting information system on
corporate governance:
Evidence from Pakistani textile sector. International Journal of Law and Management, 63(4),
431–442. https://doi.org/10.1108/IJLMA-07-2020-0212

Kamil, O. A., & Nashat, N. M. (2017). The impact of information technology on the auditing
profession-analytical study. International Review of Management and Business Research,
6(4), 1330–1342. Retrieved from https://www.irmbrjournal.com/papers/1513071494.pdf
Hernandez, A.A. (2020), “Exploring the factors to green IT adoption of SMEs in the Philippines”,
Start-Ups and SMEs: Concepts, Methodologies, Tools, and Applications, IGI Global, pp. 907-
926.

Ibrahim, F., Ali, D.N.H. and Besar, N.S.A. (2020), “Accounting information systems (AIS) in
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Bashorun, M.T., Omopupa, K.T. and Dahiru, G. (2020), “Cloud computing and academic
libraries in Nigeria”, Handbook of Research on Digital Devices for Inclusivity and Engagement in
Libraries, IGI Global, pp. 113-134.

Jimoh, A.T., Shittu, A.T. and Attah, J.A. (2020), “Impact of financial inclusion on performance of
banks in Nigeria”, Fountain University Osogbo Journal of Management, Vol. 4 No. 3, pp. 84-96.

Hassan, H. (2020), “Factors influencing cloud computing adoption in small medium enterprises”,
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Ahmed, E.R., Alabdullah, T.T.Y., Thottoli, M.M. and Maryanti, E. (2020), “Does corporate
governance predict firm profitability? An empirical study in Oman”, The International Journal of
Accounting and Business Society, Vol. 28 No. 1, pp. 127-143.

Anderson, D.R., Sweeney, D.J., Williams, T.A., Camm, J.D. and Cochran, J.J. (2020), Modern
Business Statistics with Microsoft Excel, Cengage Learning, Boston, MA

Thottoli, M.M. (2020), “Impact of accounting software among SMEs accountants in Oman:
financial markets”, Institutions and Risks, Vol. 4 No. 2, pp. 25-33, doi: 10.21272/fmir.4(2).25-
33.2020.

Ibrahim, F., Ali, D.N.H. and Besar, N.S.A. (2020), “Accounting information systems (AIS) in
SMEs: towards an integrated framework”, International Journal of Asian Business and
Information Management (IJABIM), Vol. 11 No. 2, pp. 51-67.

Birt, J., Chalmers, K., Maloney, S., Brooks, A., Oliver, J. and Bond, D. (2020), Accounting:
Business Reporting for Decision Making, John Wiley & Sons, Hoboken, New Jersey.