A Study on the Use and Effectiveness of Accounting Software Systems in Enhancing the Business Performance in Mumbai

Abstract

Accounting software is used by organisations to record their day-to-day financial transactions, which include fixed assets management, expense management, revenue management, accounts receivables, accounts payable, etc. The major problem faced by the users is misperception in using the software for their day-to-day accounting and business needs. The biggest problem for accounting software users is unsuitable accounting packages and apps which has inadequate and unauthorised data. Many firms and organisations do not take correct decisions based on fundamentals due to a lack of information and use of the right accounting software. The question arises of how to select the right accounting software for the business and what are the factors influencing the decision-making process for business performance. We collected data from accounting software users from different firms/organisations and found that accounting software is used majorly in the age group of 20–40 years. SAP, Tally and Algol are the prime software used for recording purposes. Reliability, data quality and ease of use are considered while selecting the software. As per the survey, accounting software helps in increasing profitability, improves productivity and helps in reducing costs.