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The Relationship Between The Usage of Xero Accounting Software and The Intellectual Capital of The Selected Companies in Pampanga
The Relationship Between The Usage of Xero Accounting Software and The Intellectual Capital of The Selected Companies in Pampanga
In Partial Fulfilment
of the Requirements for the ACCTG ELEC 3
Accounting Research Methods
by
Researchers
BSA 4-A
NACPIL, Alyssa Jesse D.
BSA 4-D
DELGADO, Kyle Luigi B.
GALANG, Alvin Jr. M.
To:
Yuri Walter Akiate
June, 2023
APPROVAL SHEET
ACKNOWLEDGEMENT
DEDICATION
ii
ABSTRACT
Most companies are told that cloud-based accounting software will aid their
businesses to become more organized, to automate and improve the accuracy of the input
process data that helps them thrive in today's world. In line with that, this study aspired
to examine the usage of xero accounting software and how it affects a firm's intellectual
capital. The questionnaire was sent to the random 105 samples taken from the divided
subgroups. The researchers used a quantitative approach and analyzed the data using
several statistical treatments; Weighted Mean and Pearson's R. The researchers found that
companies perceive the usage of xero accounting software as favorable, and a significant
Capital
iii
TABLE OF CONTENTS
Dedication........................................................................................................................ iv
Abstract..............................................................................................................................v
CHAPTER I .....................................................................................................................1
Introduction ..............................................................................................................1
Definition of Terms................................................................................................14
Acronyms ...............................................................................................................17
CHAPTER 2...................................................................................................................18
Research Instrument...............................................................................................21
CHAPTER 3...................................................................................................................25
Relational Capital.......................................................................................30
CHAPTER 4...................................................................................................................34
Summary of Findings.............................................................................................34
Conclusions ............................................................................................................36
Recommendations ..................................................................................................38
REFERENCES ..............................................................................................................39
APPENDICES................................................................................................................48
v
LIST OF TABLES
No. Page
vi
LIST OF FIGURES
No. Page
vii
LIST OF APPENDICES
Letter Page
H Certification of Validation 57
I Sample Questionnaire 60
J Resume 64
viii
CHAPTER 1
related literature and studies, a statement of the problem, and a conceptual framework.
The chapter also discusses the significance, scope, and delimitation of the study. Lastly,
Introduction
Over the years, the accounting industry has undergone continuous change
through innovation and improvement making it easier to provide reliable and relevant
According to Broetje (2019), accounting and finance applications have been expanding
into the cloud ever since the advent of the internet. This gave rise to Cloud-based
wherein the whole process of accounting is prepared remotely through the internet. It
enables a more significant number of users and businesses to share optimized resources
for their users. This gives ease of accessibility to accounting information at any time and
from any location through a network connection. This situation decreases the user’s
According to Adonie and Ionescu (2019), the cloud has been one of the most
1
significant impact on financial reporting for both businesses and individuals. It is
considered to be an indispensable tool for accountants in the near future and would
improve the accuracy of financial information and the business strategy. The most recent
has been transformative as to how accountants work on a daily basis with their clients.
Corkern et al. (2015) mentioned that accountants who stay abreast of new developments
within the field of cloud computing, becoming not only educated but experienced, may
provide assistance and advice in an organization’s assessment process of this new cloud-
business, it is important for them to possess IT knowledge and skills relevant to their
roles to provide competent and professional services. Accountants can foster innovation
and the need for new technologies by constantly searching for methods to increase work
productivity.
context that enables the use of hardware and software to deliver a service over a network.
Due to its adaptability, effectiveness, and affordability, cloud accounting has been
education. Online accounting was present before the global health crisis, according to
Dapiton et al. (2023), but the significant increase in the number of Filipinos was only
brought to light as a result of the COVID-19 pandemic. Many Filipinos were already
engaged in freelancing prior to the pandemic, but after COVID-19 struck, it seemed more
appealing and useful (Tudy, 2021). Utilizing digital innovations and technologies while
working from home safely is made possible by working remotely (Trajano, 2021). Guo
2
(2021) added support to these claims by asserting that cloud computing is being embraced
by Philippine companies because it has allowed them to make quick and simple
adjustments in the face of the pandemic. They predict that in the near future, more
Philippine companies will use cloud services for their primary operations.
sharing programmable computing resources that can be quickly set up with minimal
accounting and other financial functions can simplify tasks, assist company growth, and
help in global reach and expansion (Twilley, 2013). Furthermore, Saha et al. (2020)
suggested that, to minimize repetitive administrative processes and fees given to qualified
human resources for their expertise and knowledge, accounting professionals should
adapt to the new technology and also find new ways of working in the digitalized world.
In this journey, technology and the cloud model can make it easy, simple, and affordable
for them.
As said by DanielDern (2012), the primary benefits that attract Certified Public
everybody is using the same version, and automatic secure cloud backup, so the
companies wouldn’t need to worry about users doing their own backup in a regular,
secure fashion, and simplified access. Having the applications and data “in the cloud”
allows “anywhere, anytime” access. The users can acquire financial data from
smartphones and tablets, not just from desktop systems. Also, the accountants and clients
can work together since both have access to the same data. In order to implement and use
the cloud-based accounting software, the accountant must have ample knowledge about
3
it. Since accountants are entailed with broad roles in business, it is necessary for them to
have knowledge and skills about information technology relevant to their part to provide
competent and professional services (Tam, 2013). Tarmidi et al. (2014) has established
through their study regarding the awareness of cloud computing among accounting
practitioners in Malaysia, in which most of the respondents believe that the cloud-based
accounting is an advanced technology that molds the business process, even so they are
not acquainted from it and doesn’t have a clear concept about the cloud-based technology.
This has prevented them from appreciating the benefits and advancements offered by it.
Moreover, Ebenezer et al. (2014) conducted a study on whether cloud computing can be
used in accounting systems wherein they illustrated that 64% of accountants have an
extensive knowledge about cloud computing which means that it can help in the
established and one of these is the Xero software. It is one of the most recognized
accounting software in today’s world and a lot of businesses use it. Xero is a cloud-based
accounting software that comes with a surfeit of integrations. Xero works for a range of
unlimited users and user-level permissions and provides significant automations and
software that helps users create invoices, track payments, and manage inventory. It is
software, as this allows users to connect customer and financial records in real time.
Furthermore, Jones et al. (2021) stated that Xero is a commonly used accounting software
4
package designed for small businesses and was chosen for use in this course due to its
wide applicability.
Based on Baird (2022), Xero is an online cloud accounting software, which means
it’s accessible through the internet, rather than having to physically install it on your
computer. Xero originated in New Zealand back in 2006. Today, Xero is a major player
in the cloud accounting game and leads the New Zealand, Australian, and United
Kingdom cloud accounting markets. Globally, there are more than 2 million subscribers
that use Xero. Gone are the days of hard copies and faxes. Xero makes collaboration
between businesses and their bookkeeper, accountant, or financial adviser easy and
look at the same information at the same time from different locations. Security also
comes into play here as well, as the user is always in control of who has access to Xero
and what they’re able to do in Xero. Like any cloud accounting software, the company’s
reputation hangs on whether or not they can guarantee that its data is adequately
protected. So it’s in Xero’s best interests to maintain the highest level of security to
Research by Mauricette (2019) stated that users from the accounting firms and
SMEs in Auckland were generally satisfied and found the software Xero to be successful.
This implies that the EUCS model can further be utilized by researchers and practitioners
to evaluate similar cloud-based software in accounting firms and SMEs in New Zealand
and other countries. In addition, Eltweri and Cavaliere (2020) discovered that the e-
accounting impact that is most significant is that technological development has saved
time and costs for users as it reduces costs, enhances the standard of clerical work,
5
provides sufficient space for data storage and the processing of information so that
advancement, the preparation and arranging of accounting records can now be undertaken
system can generate various kinds of information for the user in a much shorter time
easily achieved.
depends on its ability to develop intellectual potential. It is the intellectual capital that
(Kasych et al., 2021). Wang (2021) suggested that in the new strategic environment,
organizations would thrive when they see themselves as a learning organization whose
goal is to improve intellectual capital continually; an organization that cannot increase its
intellectual capital cannot survive. The term intellectual capital is used in the overlap of
processes, innovation capacity and implicit and explicit knowledge of its members and
partner network. Intellectual capital is a concept that classifies all intangible resources as
well as their interconnections. Okoye et al. (2021) mentioned that intellectual capital
no material form; these resources, together with material and financial assets of the
important resource and a key contributor to the economic success and value creation in a
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business. Intellectual capital is an intangible value driver in an organization that brings
and the buyers have become more informed. Also, the modern business environment is
quite dynamic and the business organizations are facing many changes. The survival of
many businesses depends on their willingness and ability to adapt to such changes.
Through intellectual capital, the firms are able to quickly adapt to the changes and remain
competitive advantage due to innovation (Obeidat et al., 2017). Si (2019) mentioned that
with the advent of the era of the knowledge economy, intellectual capital has become one
assets, and also has significant impacts on the company's competitive position. In recent
years, research on intellectual capital and enterprise performance has become a new
hotspot in the field of management accounting. However, because the theoretical basis of
intellectual capital is not mature enough, scholars argue about it, and it is difficult to reach
a consistent conclusion. Even so, Chowdhury et al. (2019), discussed that the IC is a
significant resource in the sustainable development and creation of value of a firm. It has
been proven by many studies that IC has a critical role in improving firm performance.
Additionally, Daroneh et al. (2014) stated that intellectual capital is gaining importance
in today's knowledge economy and plays a vital role in innovation, productivity growth,
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the following areas: human resources, organizational structure and processes, research
and development, technology and rights related to intellectual property, and consumer
networks and software providers. Intellectual capital management is a field that involves
the creativity and intelligence of individuals, new management methods, new information
technologies, and new ways of thinking about post-industrial organization and the new
knowledge economy.
Chiucchi and Dumay (2015) defined that intellectual capital consists of human
capital, structural capital and relational capital. These three parts of the Intellectual capital
are defined in the study of Cleary and Quinn (2016). Tacit and explicit knowledge
gathered through the staff of a firm is defined as human capital. This can be the
experience of the staff, education, skill level etc. Structural capital is defined as
procedures, rules, norms that comprise the very center of the firm and which would
facilitate the flow of organization knowledge required to enhance the efficiency and
that are built with key stakeholders which enables the organization to gain competitive
knowledge to saleable items such as goods and services. In the same study it has identified
indicated that the three components of intellectual capital are interrelated and play an
essential role in influencing the growth and value position of the business.
(2016) describe human capital as, in simple terms, anything but physical capital such as
8
properties, equipment, and financial capital. On the one hand, employees with solid
professional knowledge and rich technical experience would be more accurate when they
grasp the potential direction of innovation and can control possible errors in the operation
of technological innovation (Sok, 2013). They can make technological innovation more
efficient and with lower risk, thus making it more active. However, the knowledge
Structural Capital is the supportive infrastructure that enables Human Capital to function.
when people leave. Structural Capital includes such traditional things as buildings,
Organizational Capital, Internal Capital) - "that which is left after employees go home
for the night": processes, information systems, databases, policies, intellectual property,
culture, etc. Thus, the knowledge embedded in organizational structures and processes.
On the other hand, Relational Capital is the strength and loyalty of customer relationships.
The notion is that Customer Capital is separate from Human and Structural Capital, and
9
relational capital refers to all relations a company entertains with external subjects, such
In a study by Cleary and Quinn (2016), it was found that there was a moderately
strong positive relationship between human capital and cloud-based accounting systems.
systems. This indicated that cloud accounting-based systems have enabled employees to
perform their duties efficiently while using their knowledge in a more effective manner.
The positive relationship with relational capital reveals that cloud-based accounting
systems enable an organization to collect and analyze data to have increased and effective
interactions with their stakeholders. In addition to this, they also have mentioned that the
three elements of intellectual capital positively impacted the firm to varying degrees by
interaction amongst all three elements of firms IC (empowered by the use of a cloud-
Furthermore, it has been suggested by Afshari (2014) that cloud computing can
the awareness, adoption, and ease of use of accounting software. However, less has been
done to explore the relationship between the usage of accounting software, specifically
Xero and the intellectual capital of the firm. This study aims to examine the relationship
between the usage of Xero accounting software and a firm's intellectual capital.
10
Statement of the Problem
The primary goal of this study is to determine the relationship between the use of
Xero accounting software and the intellectual capital of the selected companies. This
study examines how the use of accounting software, specifically Xero, affects a firm's
intellectual capital.
respondents?
II. What are the respondents’ perceptions on the use of Xero accounting software
a. Human Capital;
b. Structural Capital;
c. Relational Capital?
11
Conceptual Framework
software and the dependent variable is the intellectual capital. Moreover, the figure also
shows the three sub-variables under intellectual capital: human capital, structural capital,
The study aims to determine if there is a significant relationship between the usage
of Xero accounting software and the companies’ intellectual capital. And lastly, the study
wants to know if the usage of Xero accounting software significantly affects the
The findings of the study are deemed significant for the following:
12
Cloud-based Accounting Developers. The study's insightful findings may
benefit cloud accounting developers in developing suitable adjustments to meet the needs
understanding how accounting software works in practice. In a way, it may help them
identify how the use of Xero accounting software affects their intellectual capital.
Students. As future professionals, this research can help them obtain knowledge
by learning more about how using Xero accounting software affects an organization's
intellectual capital.
for future research. It may also contribute in expanding the existing literature on cloud-
based accounting software in aspects of developing and emerging economies. The study
intends to give data that may be significant to the study on the relationship between the
organization's intellectual capital and the use of the Xero accounting software.
The study covers the determination of the relationship between using Xero
accounting software and intellectual capital of the selected companies. The primary
subjects of this research study are the employees of selected companies in Pampanga.
13
Thus, the survey respondents are limited only to those who use Xero accounting software.
Non-users of Xero accounting software are exempt, although employed by such selected
companies in Pampanga. A Google form was used to distribute the adapted survey
questionnaires.
Moreover, the study takes into account the respondents’ perception on the use of
Xero accounting software in general and as to the intellectual capital of the organization.
Intellectual capital is described in terms of human capital, structural capital, and relational
capital.
Lastly, the study evaluates whether there is a significant relationship between the
Definition of Terms
For a clearer understanding of the study, the following terms are readily defined.
keeping, tracking transactions within that system, and assembling the outcome
information into a set of financial reports (Steven B., 2021). In this study, accounting
tasks, like controlling and balancing the books, using software that is located in the cloud
and is regularly taken as a service model. Accountants can handle accounts payable,
14
accounts receivable, the general ledger, and more within the application. (McCue I.,
2021) In this study, cloud-based accounting software refers to Xero software which is
used by the selected companies as the modern way of recording, analyzing, and
and resources that can be used to generate some form of economic benefit. It’s also used
to identify a firm’s intangible assets and divide them into meaningful categories such as
human capital, relationship capital, and structural capital (Corporate Finance Institute,
2021). The term "intellectual capital" in this study refers to intangible assets owned by
the company that are valued equally to tangible ones and contributes to the bottom line
of the company. These assets consist of the human capital, relational capital and structural
capital of companies.
education, training, intelligence, skills, health, and other things employers value such as
loyalty and punctuality (Kenton W., 2022). In this study, human capital refers to the
expertise that employees bring to the company. It also refers to the economic benefit that
an individual contributes to business based on their education, skills, loyalty, drive, and
well-being.
result of having an experience in relation to a topic. (Kırkgöz, Y., 2018) In this study,
perception is defined as the understanding of selected companies’ Xero users on how the
15
software improves or harms their organization’s intellectual capital based on their
experience.
intangible value present in the organization’s relationships with business partners and
other external parties that contribute to fulfilling the company's needs, and also includes
elements like corporate reputation and customer potential (MBA Brief, 2022). Relational
capital, as used in this study, refers to the connections a company has with the people
who make up its stakeholders, including its customers, suppliers, the general public, and
investors.
belief system of an organization, such as its mission statement, company policies, work
culture, and its organizational structure (Chen, 2021). In this study, structural capital is
the infrastructure and intellectual capital that a company has amassed over time which
helped improve its overall performance. These assets include the company's systems,
Xero - a cloud-based accounting software that helps users create invoices, track
payments, and manage inventory. It allows users to connect customer and financial
records in real time. (Ilao, 2022) In this study, Xero is referred to as the modern way of
doing accounting on business transactions of the selected companies. Its main feature is
it can be accessed anytime and anywhere using the internet, making it easier for its users
to do their tasks.
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Acronyms
IC – Intellectual Capital
IT – Information Technology
17
CHAPTER 2
RESEARCH METHODOLOGY
This chapter presents the methods and techniques of the study, the population and
sample, the data gathering procedure, the research instruments, statistical treatments, and
ethical considerations that are applied in the analysis and interpretation of data.
Research Design
the researchers seek to describe the respondents’ perception on the use of Xero
accounting software and the intellectual capital of the selected companies in Pampanga.
relationship between the variables that are tested to hypothesize to a larger group of
individuals than those who are participating in the study; this is to understand the
behavioral patterns and the reasons behind that behavior. Descriptive correlational design
is used in research studies that aim to provide static pictures of situations as well as
research, two variables are studied to establish their relationship. The descriptive
correlational design is ideal for the study as there would be clearly outlined research
questions. This design allows for the systematic analysis of the relationship of the usage
of Xero accounting software (independent variable) and the intellectual capital of the
such as Xero, replacing the traditional accounting methods used, to allow more
18
integration within the business environment, as well as helping to computerize labor
intensive processes within an organization to reduce costs and improve efficiency within
businesses. The usage of cloud computing for accounting and other financial functions
can simplify tasks, assist company growth, and help in global reach and expansion
(Twilley, 2013). The dependent variable is defined as the intellectual capital of the
selected companies in Pampanga. Kadim et al., (2020), said that intellectual capital as a
information-based historical data to do jobs faster and better with the help of technology.
The respondents of the study are the employees of the selected private companies
in Pampanga who use Xero accounting software. Pampanga was chosen to be the location
of the study because the province is one of the urbanized regions in Central Luzon. This
means that there are a lot of companies residing in Pampanga; hence, sufficient
information can be acquired in this locale. The researchers gathered three private
companies to participate, and due to the Data Privacy Act, the aforementioned private
companies did not disclose the size of their population. Therefore, the total number of
agree that the minimum sample size to get any kind of meaningful result is 100. Also,
when the population is unknown, 100 participants are typically considered the minimum
sample size (Alshibly, H., 2018). In this study, the researchers opted to use the minimum
19
Sampling Design
divided into subgroups or strata and a random sample is taken from each (Acharya, A. S.
et al., 2013). According to QuestionPro.com (2023), this method is useful when the
population is heterogeneous and simple random sampling might not yield reliable results.
The stratification of the population allows researchers to ensure that their sample is
representative of the population and free from biases associated with sampling. Since the
population was undetermined, the minimum sample size was divided by the researchers
The researchers began selecting companies by using Google and the professional
networking site LinkedIn to filter and list companies in Pampanga that could be using
Xero accounting software. The listed companies were then emailed to confirm their use
of Xero accounting software. The three companies that responded via email with their
20
Moreover, in anticipation of conducting the study, the researchers sought
permission from the management of selected companies and the confirmation of the
Letters of approval from the university and the Dean of the College of Business
Studies were submitted and secured before the distribution of the questionnaires to the
respondents. Questionnaires are distributed only with the approval of the research
Research Instrument
on the use of Xero accounting software in general and as to their intellectual capital of
the organization, and the relationship between the usage of Xero accounting software and
This instrument provides reliable data that is easier to administer, analyze, and
rational conclusions and recommendations for the study. The survey questionnaire is
verified by department experts and other knowledgeable individuals, taking into account
The said experts, who worked at Don Honorio Ventura Technological State
University, assessed the instruments' content validity. Each item has been assessed for its
21
fit with the construct to which it is related. The contents of the instruments were modified
Lastly, the questionnaire is divided into three sections. Part I of the questionnaire
examines the respondents' perceptions on the use of Xero software in general on their
organization, adapted from the study of Cleary, P and Quinn, M. (2016). The model used
for measurement is the Likert Scale Model which has scales from 5-1, interpreted as
Strongly Agree (5), Agree (4), Neutral (3), Disagree (2), and Strongly Disagree (1) per
item. Similarly, the same model of measurement is used in part II of the questionnaire,
which assesses the respondents’ perceptions on the usage of Xero software as to the
firm’s intellectual capital – human capital, structural capital and relational capital –
Statistical Treatment
organized, tallied, tabulated, and subjected to statistical treatment. To treat the data,
the usage of Xero accounting software in general to the organization, the responses are
calculated using a weighted mean. Similarly, the same treatment is used in determining
the respondents’ perceptions on the use of Xero software as to the firm’s intellectual
capital – human capital, structural capital and relational capital. The table below is used
in the weighing of the questionnaire during the data analysis. The means were interpreted
as follows: Strongly Disagree in the point range of 1.00-1.80, Disagree 1.81-2.60, Neutral
22
2.61-3.40, Agree 3.41-4.20, and Strongly Agree 4.21-5.00 (see table 4) (Cobern, W. et.
al., 2020)
Source: https://www.researchgate.net/figure/Qualitative-Interpretation-of-5-Point-Likert-Scale-
Measurements_tbl2_348329285
To determine the relationship between the usage of Xero accounting software and
According to Chao, C. (2017), the Pearson correlation coefficient (also known as Pearson
(instead of difference) between two quantitative variables (interval/ratio) and the degree
to which the two variables coincide with one another—that is, the extent to which two
variables are linearly related: changes in one variable correspond to changes in another
variable.
23
Ethical Considerations
All references in this paper are cited to ensure that the authors of the works cited
are properly credited. This ensures that the data and information gathered from the
A copy of the authorization for the Dean of the College of Business Studies is
enclosed with this paper to further authenticate the approval of the performance of this
private companies and the respondents through the consent form attached to this study.
The consent form ensures the confidentiality of the respondent's responses. This consent
the data gathered. The respondents guarantee that their responses are fairly assessed and
that all information provided is used in any paper other than this research. This procedure
24
CHAPTER 3
This chapter presents and examines the gathered data that correspond to the
problem of the study provided in the first chapter. It illustrates the relationship between
the usage of Xero accounting software and the intellectual capital of companies. The
results and findings of the study are based on the analysis of the data gathered through
Table 2 features the employees’ perception on the usage of Xero software in the
organization. As observed on the table, the respondents strongly agreed that utilizing
Xero software simplified the process for their accounting tasks (x=5.00). On the other
hand, the respondents disagreed with the reverse statement that the software limits their
The analysis of the data regarding the respondents' assessment shows that they
concurred that the use of the Xero accounting software made the accounting process
L. et al. (2021), accounting software programs are created to produce simple money
transactions (bookkeeping) between companies and other entities to record all financial
processes. Also, according to Pavlykivska, O. et. al. (2021), accounting software makes
accountants work easier and provides data on the "true health" of businesses; therefore,
25
business owners are willing to pay a substantial sum for complex and advanced
always been a challenge (particularly the timing of report delivery, which can delay the
decision-making process), but since the advent of cloud technologies, most issues have
been resolved. The main benefit of cloud accounting software is that it puts the entire
Std. Descriptive
Indicator Mean
Dev Rating
26
II. Respondents’ Perception on the Usage of Xero Software as to the Firm’s
Intellectual Capital
A. Human Capital
The table 3 presents the perception of the respondents on the usage of Xero
accounting software within the organization with regard to the firm’s intellectual
capital, specifically to human capital. The results show that the respondents
strongly agreed that the software has enhanced their ability to collaborate within
the organization (x=4.50), and their ability to generate knowledge (x=4.50). Also,
the respondents agreed that with the use of Xero accounting software it enhances
financial reports, and work together on budgeting and forecasting when financial
data is managed centrally. A more unified and encouraging work environment may
result from this improved collaboration, which will help retain more workers and
human capital are substantiated. The respondents "Agree" that the usage of Xero
cloud accounting has a significant positive relationship with human capital. This
27
shows that utilizing cloud accounting has improved job performance, collaboration,
Std. Descriptive
Indicator Mean
Dev Rating
It has enhanced…
28
B. Structural Capital
strongly agreed that the software has enhanced their capacity to acquire relevant
data/knowledge (x=4.50). Moreover, the respondents agreed that the software has
enhanced their ability to use accounting and finance systems within the
organization's use of the Xero Accounting Software has strengthened its structural
capital, which includes its processes, data, systems, etc. According to Young
(2010), it has also been asserted that from an accounting perspective, the use of
cloud computing has the potential to increase the flow of information within an
by Quinn et al. (2014), “the main advantage [of cloud accounting] cited was an
29
Table 4. Respondents’ Perception on the Usage of Xero Software as to the Firm’s
Intellectual Capital – Structural Capital
Std. Descriptive
Indicator Mean
Dev Rating
C. Relational Capital
agreed that using Xero accounting software has enhanced their ability to acquire
and use information about customers (x=4.37) and suppliers (x=4.37). According
30
can be made much simpler and more effective by integrating AI-based accounting
software into operational tasks. Strong relationships between a company and its
enhance business operations and strengthen favorable credit histories for future
software’s capability in helping them predict future customer and market trends
(x=3.37). With this in mind, the information gathered indicates that respondents
agree that the organizations' adoption of Xero accounting software improves their
customers, suppliers, the public, and investors. This finding supports the findings
capital is that cloud accounting has made it possible for organizations to efficiently
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Table 5. Respondents’ Perception on the Usage of Xero Software as to the Firm’s
Std. Descriptive
Indicator Mean
Dev Rating
III. Significant Relationship Between the Usage of Xero Accounting Software and
Capital (R = .738, Sig. = .000), Structural Capital (R = .657, Sig. = .000), and Relational
Capital (R = .810, Sig = .000). Thus, the hypothesis is accepted. The Intellectual Capital
32
(dependent variable) exerts a significant relationship towards the usage of Xero
can positively impact the users’ skills, professional beliefs, corporate reputation, and
impacts all three components of Intellectual Capital positively. It has been suggested by
Afshari (2014) that cloud computing can impact the business organization performance
Table 6. Significant Relationship Between the Usage of Xero Accounting Software and
Variables R Sig.
Human Capital .738 .000
Usage of Xero
Structural Capital .657 .000
Software
Relational Capital .810 .000
33
CHAPTER 4
This chapter shows the summary of findings, conclusions drawn and suggested
recommendations derived from the information reported in the previous sections of the
study.
Summary of Findings
After analysis and interpretation of the gathered data, the significant findings are
as follow:
findings, the respondents firmly agreed that using the Xero accounting software
helped simplify (x=5.00) and standardize (x=4.25) the procedure for their accounting
tasks. Additionally, the software made it easier for any member of the accounting
(x=4.01) that the software restricts their ability to customize accounting systems to
suit their requirements. The result about the respondents' assessment shows that the
respondents agreed (x=4.39) with the following indicators about how the organization
34
2. Respondents’ Perception on the Usage of Xero Accounting Software as to the
a. Human Capital. The findings indicate that the respondents strongly agreed that
the software has improved their capacity for collaboration within the organization
of cloud technology (x=4.38). The respondents also concurred that the use of Xero
findings about the dependent variable, particularly in human capital, are favored.
The respondents "Agree" (x=4.17) that using Xero Accounting Software helps
b. Structural Capital. The results showed that the respondents firmly agreed that the
software had improved their ability to gather (x=4.50), access, and communicate
pertinent data and knowledge for decision-making (x=4.38), planning, and control
(x=4.38). The respondents also strongly agreed that the software has assisted them
in upgrading their accounting and financial systems (x=4.26). The findings show
that the respondents strongly agreed (x=4.30) that using the Xero Accounting
Software had strengthened the organization's structural capital, which includes its
35
c. Relational Capital. Analysis of data reveals that the respondents strongly agreed
that utilizing Xero accounting software has improved their capacity to gather and
(x=3.61) while also enabling them to communicate more effectively with their
their capacity to satisfy current customer and market demands (x=3.87) while
future customer and market trends (x=3.37). In light of this, the data indicates that
respondents agree (x=3.92) that the adoption of Xero accounting software by the
Firm’s Intellectual Capital. The result reveals a strong correlation between the
variables. It follows that the hypothesis is true. The usage of Xero Accounting
Software has a significant relationship with intellectual capital. The results show that
using cloud-based accounting software can have a positive impact on users' abilities,
Conclusion
Accounting Software is propitious to its users. The software makes the users’ daily
36
tasks more standardized and simplifies the process making it easier for any
accounting staff to perform tasks and communicate the accounting procedures to new
staff. While making the tasks easier, the software does not limit the users to customize
interpreted that using Xero Accounting Software positively affects human capital,
affects the management’s decision making and the cross-functional teamwork across
the organization. Being a user-friendly software, Xero also has a positive impact on
employees’ motivation and retention in the company. Regarding the Structural aspect,
Xero Accounting Software enhanced its users’ ability in acquiring data for decision-
making, planning and control and upgrading their accounting systems. Lastly, the
Relational Capital, it helps the users in acquiring information about its customers,
suppliers and competitors. The software enhances the ability of the users to meet the
needs of the customers, predict the trends, and interact with their employees,
3. All components of the dependent variable exert a significant relationship towards the
have knowledgeable and committed employees, establish firm beliefs and structure,
37
Recommendations
their knowledge and competency in using the software, such as providing tutorials on
how to navigate the website, its tools, and the process of acquiring the certification.
2. Teaching basic knowledge, i.e., tools and uses, on cloud-based accounting software
3. Companies must conduct regular training for their employees regarding cloud-based
benefit from its functions such as ease of access, secured data, improved business
if their findings about its effect on their selected organization's intellectual capital are
comparable to the results of this study. An additional study about the effect of a
may support or oppose the findings of this study; hence, this will provide future
accounting software.
38
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APPENDIX A
APPENDIX B
APPENDIX C
APPENDIX D
APPENDIX E
APPENDIX F
APPENDIX G
APPENDIX H
APPENDIX I
APPENDIX J
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