Information technology and E-accounting usage : determinants among S.M.Es in Sri Lanka

Abstract

This research study aims to examine the factors affecting e-accounting practices in Sri Lankan small and medium-sized enterprises (S.M.Es). The rapid advancement of information technology has brought about significant changes in accounting practices, with e-accounting emerging as a viable solution for enhancing efficiency and effectiveness in financial management. However, there is limited empirical research focusing specifically on the implementation and utilization of systems in e-accounting among Sri Lankan SMEs. To address this research gap, a quantitative research approach was adopted. Data was collected from a sample of SMEs in Sri Lanka through structured questionnaires, and statistical analysis such as descriptive analysis, correlation analysis and analysis of regression were employed to identify the relationships between various factors and e-accounting practices. The findings of this research provide valuable inputs into the factors affecting E-accounting practices in Sri Lankan SMEs. The results reveal that information technology cost, risk of information technology, and employees’ information technology skills significantly influence the adoption and utilization of e-accounting systems where employee theoretical knowledge was not significantly contributed. And also study has investigated that organizational supportiveness has a moderating effect on E-accounting practices. The theoretical implications of this research highlight the importance of considering both technological and human factors in understanding the adoption and usage of systems in E-accounting. Practically, the findings highlight the need for SMEs in Sri Lanka to invest in developing their employees' IT skills and information technology to facilitate the successful implementation of E-accounting practices. In conclusion, this research provides valuable insights into the factors influencing E-accounting practices among Sri Lankan SMEs. The outcomes contribute to both academic understanding and practical implications for SMEs aiming to enhance their financial management practices. Further research is recommended to address the limitations and expand the scope of this study, ultimately supporting the advancement of E-accounting practices among SMEs in Sri Lanka and beyond.