Challenges in the Adoption of Computerized Accounting Systems in Small and Medium Enterprises of Sri Lanka

Abstract

Use of Computerized Accounting Systems (CAS) are popular among business entities since they provide with numerous advantages such as speed, accuracy, legibility, efficiency, up-to-date information, cost savings etc. However, in the Small and Medium Scale Enterprises (SMSE) in developing countries such as Sri Lanka are still behind in adopting computerized accounting systems due to many reasons. Further, there are very few studies in this area specially studied the challenges in the adoption of CAS in SMSE sector. Therefore, this study aims to identify and understand the challenges in the adoption of CAS in SMSEs of Sri Lanka and to test the impact of cost to be borne in the adoption and maintenance, number of employees, size of the organization, and users’ perception on the adaptation process. Further this study uses the quantitative research approach using a questionnaire survey. Data is collected through 100 SMEs representing manufacturing, trading and services sectors in Western Province, Sri Lanka. This study contributes to the on-going literature on the CAS and the users to improve the systems to a better level.