Accrual Accounting Systems Essay Example | Topics and Well Written Essays - 2500 words - 1

Accrual Accounting Systems - Essay Example Project subject area and Angle description - Small to medium enterprises are major components of developed economies as they constitute 99% of the total number of business operations in these countries. Given the space that SMEs occupying within developed economies and their importance therein studying the methods by which these enterprises can utilise IT tools to maximise organisational efficiency and effectiveness, and enhance organisational performance, is extremely crucial. In direct relation to the aforementioned, accounting and organisational management scholars have determined that the right accounting software package can substantially contribute to organisational performance and the maximisation of efficiency and effectiveness (Hirst and Hopkins, 1998). Choosing the right accounting software is perceived to be one of the most challenging tasks that an entrepreneur faces in his professional career (Johnston 2003). This is especially true for small scale business operations wh ere owners often lack the resources and expertise beyond their core activities to the point that other functions are overlooked. However, the selection process is problematic, as is the subsequent implementation process. Problem to be Solved and Worth – Although, in this highly developed economy, there is hardly an SME which does not manage its accounts through the use of accounting software, few understand the imperatives of selecting the right package or the benefits of doing so.