AN ASSESSMENT OF ACCOUNTING INFORMATION SYSTEM AND THE GROWTH OF SMALL AND MEDIUM SCALE ENTERPRISES IN NIGERIA

ABSTRACT: The study examined the accounting information system and the growth of small and medium scale enterprises (a study of SME’s in Lagos metropolis). Two theories were used in the study to have a wide scope in the research, namely; the Contingency Theory and the Design of Accounting Information System and the Technology Acceptance model (TAM).The sample of the study comprised ten SME’s in Lagos State, five from the island and five from the mainland. Primary data was used in the study. A structured questionnaire was used to collect necessary data from the selected staff of the SMEs. The purposive sampling technique was used to select two hundred (200) staff from ten (10) SME’s. In furtherance, twenty (20) staffs were selected per each enterprise selected. The data collected are subjected to the quantitative analysis of descriptive statistics and chi-square technique. Findings of the study indicated that accounting information system has significant effect on the sales growth of SMEs in Lagos Metropolis (value of chi-square is 6.410, and the critical value of chi-square is 5.74 at 5% level of significance and 4 degree of freedom); accounting information system has significant effect on the asset growth of SMEs in Lagos Metropolis (value of chi-square is 9.79, and the critical value of chi-square is 7.59 at 5% level of significance and 5 degree of freedom).The study concludes that accounting information system has significant impact on the sales and asset growth of SMEs in Lagos Metropolis.The study suggests amongst others that, SMEs should improve their accounting system in order to generate quality, reliable and timely accounting information, Owners of SMEs should integrate accounting information system in their decision processes, SMEs should endeavor to consult accountants regularly in order to be able to maintain high and generally acceptable accounting practices, Accounting training programmes for SMEs should be organized by the Lagos State Ministry of Trade, Commerce and Industry for those who do not know the importance of maintaining accounting records to come to grips with it, Government should stipulate the minimum number of books to be kept by all SMEs that meet certain criteria which certifies them to operate in Nigeria, SMEs should ensure that the cost of acquiring AIS does not outweigh the benefits the company would gain from using them.