Accounting Information System and Business Performance of Selected Businesses (SMEs) in a Philippine City

Most small and medium enterprises (SMEs) use accounting information without realizing the value it had for their business performance. Even evaluating the significance of including the requirement for designing a system for such an accounting information system was tough for them. The main objective of this study was to determine the relationship of the Accounting Information System on the business performance of selected businesses (SMEs) in Lucena City. The researchers surveyed sixty (60) SMEs in Lucena City that use an accounting information system. This research study measured the level of perceptions of business owners, managers, and employees who are authorized to use the business' accounting information system. This study also determined if there is a significant relationship between the perceived usage of accounting information systems in terms of data reliability, processing, and security with regard to business performance. Consequently, the perceived business performance was determined in terms of cost reduction and inventory control, and management efficiency. This study utilized the descriptive research method to describe the level of perception of selected business owners, managers, and authorized employees regarding the usage of accounting information systems through survey-type questionnaires. With the datasets collected from a survey of 60 respondents, Spearman Rho Rank correlation was considered as the statistical technique to determine if there is a significant relationship between accounting information systems and business performance. Results reveal that age, capitalization, and years in operation may moderate the views of respondents on the use of AIS and business performance. It suggests that these demographic factors may be taken into consideration when implementing AIS and assessing business performance among SMEs. Furthermore, based on the findings presented, there is a significant, weak to moderate positive relationship between the perceived use of AIS and perceived business performance among the SMEs studied.