EFFECT OF ACCOUNTING PRACTICES ON TRADE AND INFORMATION TECHNOLOGY IN CALABAR METROPOLIS

What is it about?

This study examined the effect of accounting practices on trade and information technology in Calabar metropolis. The study specifically assessed the effect of accrual accounting and cash accounting practices on the usage of information technology for trade by SMEs in Calabar metropolis. The study applied the survey research design with a well-structured questionnaire administered on three hundred and seven respondents. The ordinary least square technique was the analytical tool used in the study’s analysis. Findings from the analysis showed that accrual accounting and cash accounting practices had no significant effect on trade through information technology. Based on the findings, it was concluded that through accounting practices have no direct significant effect on information technology but in reality, information technology plays vital roles in modern trade towards effective and efficient attainment of organizational goals and objectives of setting up SMEs. Relying on the findings and the conclusion reached, the study recommended that owners and managers of SMEs should train their employees on the use of accounting software, which is developed by information technology experts, for the timely preparation of accounting reports and or financial statements for prompt decision making. Lastly, SMEs should invest adequate resources in accounting information system as this is necessary to monitor the level of organization activities, track receivables, and conduct inventory control.

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Why is it important?

The use of cash accounting methods enhanced the adoption of an information technology system has revealed by this study. This was so since organizations were willing to present their record and access them on timely basis. This study showed the existent of a significant positive effect of the cash accounting method on the information technology system which will put management any business in the right direction on how to manage cash properly.

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