Adoption of digitalization tools for accounting purposes by SMEs in Tubah Sub Division

Abstract

The purpose of the study was to access the adoption of digitalization tools for accounting purposes by SMEs
in Tubah Sub Divsion. Research questions were answered by formulating a set of hypotheses. A quantitative
approach was used. Relevant data was collected through structured questionnaire. Subjects for the study
consisted of 60 business men selected from the villages that make Tubah Sub Division. The questionnaire was
distributed to business men of the locality. SPSS version 26 and Microsoft Excel 2019 has been used to for data
analysis. Both descriptive and inferential statistics were used for data analysis. The statistical tools were aligned
with the objective of the research. For this purpose, cluster bar charts and percentages were computed and
substantively interpreted. Inferential statistics like Pearson product correlation coefficient (r) and linear regression
were used to determine if there is a significant positive relationship existed between the independent variables
(basic accounting software, invoicing software and business bank account) and dependent variables (accounting
purposes). Analysis and interpretations were made at 0.05 level of significance. The hypotheses were tested using
linear regression which gave a coefficient of determinant (adjusted R2of 0.946) indicating that 94.6% Change
in accounting purposes is cause by digitalization tools. Given the fact that the probability corresponding to the
F-value is 0.001, it means that we would be taking a 0.01% risk in assuming that the null hypothesis (digitalization
tools does not have a significant effect on the accounting purposes of SMEs in Tubah Sub Division) is wrong.
The study concluded that digitalization tools has important effect on accounting purposes. Therefore, it was
recommended that SMEs should try to improve on their information technology since it is capable of contributing
positively to the accounting information system.