Abstract
Computerized accounting has been used in the business of various sizes of companies (large, medium and small). Along with the rapid development of technology, various accounting software have been developed to facilitate the company’s operations. The use of accounting software has also been used as a strategy to produce accurate, quality and reliable financial reports. Prior to the existence of various accounting applications, Microsoft Excel has been used as an accounting tool that helps many companies to record, analyze and report financial statement. The paper aims to study the use of Microsoft Excel is still the choice of accounting instruments at SME companies and the main factors contributing to the selection of accounting tools within the companies. The data were collected using questionnaires on petrol stations operators located in Kemaman, Terengganu. It covers all types of petrol stations such as Shell, Petronas, Petron and Caltex. Petrol station operators have also been interviewed for more detailed and accurate information. The results show that SME still chooses Microsoft Excel as an accounting tool for their company. Low cost is a major factor in the selection of accounting tools by SMEs. While other factors such as company size, perceive ease of use and perceive usefulness also contribute to the selection of SME’s accounting tools.
Highlights
Systematic and effective accounting is a priority for all large and small companies or government agencies
Today's business needs to be in line with the ever-changing technological developments
Jayabalan et al (2009) explained that outsourcing of accounting functions is an option for Small Medium Enterprise (SME) in order to maintain a competitive advantage in the business world environment as outsourcing could lessen the burden borne by SMEs [7]
Summary
Systematic and effective accounting is a priority for all large and small companies or government agencies. Computerized accounting is defined by Alan & Frankwood (2015) as a total suit of components that together comprises all inputs, storage, transactions, processing, collecting and reporting of financial transaction data [1]. The use of computerized accounting systems is not a requirement set by the government where the Small Medium Enterprise (SME) should follow in producing financial reports. Porter & Millar (1985) mentioned in this competitive advantage, over the years, information technology had played a major role, changing the nature of business who knows its effects [2]. It has resulted 8,000 firms previously classified as large firms were reclassified as medium firms, and benefit from the various facilities extended to SME by the government. The application of information technology is crucial
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