Title:

ACCOUNTING INFORMATION SYSTEM AND ORGANIZATIONAL EFFECTIVENESS

OF SMALL AND MEDIUM ENTERPRISES

IN GENERAL SANTOS CITY

Background of the Study

As the competition nowadays are getting tougher, Small and Medium Enterprises

have encountered various problems. As such, according to Canare and Francisco

(2019) SMEs suffer from low productivity in comparison to big businesses as they lack

access to proper facilities,technologies, and inability to compete with competitors . In

this particular reason, accounting information system may or has a potential to enhance

the success and enabler for the achievement of the organizational goals (Akgün and

Kılıç, 2013).

SMEs is important in the Philippine economy as they account for a large majority of

firms and about two-thirds of employment . On the other hand, accounting information

systems within the company add value to the company, such as accurate and timely

information so as to perform key activities in value chain effectively and efficiently,

improve quality and improve efficiency (Meiryani,Suzan, Tsudrajat, and Daud,2020).

Onaolapo and Odetayo (2012) notes that accounting information system provides

tools to financial department to enhance organizational effectiveness and emphasizing

a strong relationship between accounting information system and organizational

effectiveness (Knežević,Stanković, and Tepavac, 2012).SMEs should be encouraged to

use information systems that can fast-track the integration of their internal

processes(Borazon and Supangco ,2020). Accounting information system has a great

potential to enhance the success of the process of decision making which is seen as the
most important enabler for the achievement of the organizational goals (Akgün and

Kılıç, 2013).

The researchers are interested on what could be the relationship of accounting

information system in a certain SMEs’ to its organizational effectiveness.Thus, the

researchers decided to choose a study entitled Accounting Information System and

Organizational Effectiveness of Small and Medium Enterprises in the General Santos

City.

Statement of the Problem

This study aims to determine the level of accounting information system and

organizational effectiveness of SMEs in General Santos City. Specifically, this study

seeks to answer the following questions:

1. What is the demographic profile of SMEs in General Santos City?

2. What is the level of accounting information system in terms of;

a) speed

b) work simplification

c) quality Information

d) profitability

3. What is the level of organizational effectiveness in SMEs in terms of

A. leadership

B. performance measures

C. change management

D. employee engagement

E. organizational performance
4. Is there a significant relationship between accounting information system and

organizational effectiveness of SMEs?

5. Is there a significant difference between organizational effectiveness and

accounting information system of SMEs?

6. Is there a significant difference between organizational effectiveness and

accounting information system of SMEs when analyze according to demographic

profile?

Section A: Personal Information

1.Name of the company

2. Firm’s legal status

Public Limited Company Private Limited Company

3. How long have you been in this company (in terms of years)?

Up to 5 6–10 11-15 Over 15

4. Gender of the Respondent

Male Female
5. Department in the company

Finance & Administration ICT

Sales & Marketing Others

Section B: Assessing Organizational Effectiveness

6. Please evaluate the degree of your agreement with the following criterions for
assessing organizational effectiveness:
Key: 1=Strongly Disagree; 2=Disagree; 3=Neutral; 4=Agree; 5=Strongly Agree

Statement 1 2 3 4 5
Leadership
The leadership team have a clear vision and mission
The vision is known to all
Staff are involved in achieving the vision and mission

Performance Measures
Each team/department has measures of their quality of service
Regularly measure organizational performance
Performance measures are shared regularly with staff
Financial reports are published regularly and available for review
Managers set personal and business objectives

Change Management
People are committed to the organization
Morale is positive
The market that we operate in is relatively stable

Employee Engagement
Employees know what is expected of them
Employees have the materials and equipment needed to do their job
Employees are encouraged to development their knowledge and
skills
Employees are committed to doing quality work

Organizational Performance
The company has been reporting increased profits
The company has been reporting increased revenue
The company has been reporting increased market share

Section C: Assessing the Accounting Information Systems

Please give your opinion regarding the role played by AIS in your company on a
five point rating scale as 1 stands for strongly disagree, 2 stands for disagree,3
stands for neutral, 4 stands for agree, 5 stands for strongly agree respectively.
No. Statements 1 2 3 4 5
Speed
1 Accounting Information System makes the communication easier
among
branches.
2 It reduced the time spent on transactions.
3 It made an integration and consistency among branches faster.
4 It performs work very fast.
 5 It helps the management to take timely decisions.
Work Simplification
6 Accounting information system brings simplification in work.
7 It stores and retrieves information easily.
8 It coordinates various business activities.
9 It eliminates the repetition of paper transactions and storage
space.
10 It brings high efficiency in storage, classification, and analyses of
data.
Quality Information
11 It provides accurate and valid information.
12 It makes the information more credible and understandable.
13 It provides adequate information at right time.
14 It provides cost effective information.
Profitability
15 Accounting information system minimizes the cost of recording and
interpretation of data.
16 It helps in retaining valuable customers in the organization.
17 It contributes in inventory management.
18 It contributes in quality control.
19 It helps in reducing the costs of production.
20 It contributes in better supply chain management.

7. Does AIS play an important role in planning the firm’s strategies?

Yes No

8. Does your firm use any AIS for its financial and economic management?
Yes No

9. What shortcomings do you find in the AIS you use?

___________________________________________________________________
___________________________________________________________________
_______________________________________________________________.
10. Do you use the same computerized accounting program for financial, cost and
management
accounting?
Yes No

11.How long have you been doing your accounting with a computer program?

Less than 5 years 5 – 10 years Over 10 years

Does computerized accounting AIS allow you to manage your cash position with
12. banks?
Yes No
13.Does AIS allow you to manage your fiscal affairs with Government bodies?
Yes No

14. Do you think that the organization and administration in your firm have improved
since using AIS?
N
Yes o

15. Are you familiar with new technologies such as ERP, CRM (Customer Relationship
Management Software) and XML (Extensible Markup Language)?
Yes No

16. How do you rate your AIS towards organizational

effectiveness?
Neutra
Very Unimportant Unimportant l

Important Very Important

17. Please evaluate the degree of your agreement with the following criterions for
assessing accounting information systems: