The impact of accounting and information systems in rural small and medium-sized enterprise in southern region of KwaZulu-Natal

Abstract

Accounting information systems (AIS) are among the main success factors that effectively facilitate the achievement of accounting and financial goals, strengthen the strategic goals OF small and medium-sized enterprise, and enhance data sharing and honesty. As a result, theaim of this research was to identify the impact of accounting and information systems in rural small and medium enterprises (SMEs) in the southern region of Kwazulu-Natal. The following internal elements were investigated: access to training and development, acceptable accounting skills, access to infrastructure and the extent to which access to finance affected the development of rural SMEs. To select the respondents, this study employed a non- probability sampling technique, specifically, convenience sampling. A designed questionnaire was used to collect data from 110 respondents. The study was conducted in Umdoni Municipality (Umzinto and Scottburgh area). With the help of the SPSS computer programmed,the acquired data was quantitatively analyzed. A regression analysis and Pearson’s correlation analysis were conducted to address the specific objectives of the study. The results indicated that rural SMEs should consider implementing accounting systems because it has a positive impact on their performance. This study advised that rural communities should access training and development to overcome their challenges. In remote areas, financial literacy mentorship should be established to teach SMEs basic accounting skills, and financing access for rural SMEs. The study backs up prior findings and adds to the evidence that a lack of financial and accounting skills is two of the most significant difficulties that prevents SMEs from implementing accounting systems.