1

THE EFFECTIVENESS OF ACCOUNTING SOFTWARE

IN THE MICRO, SMALL AND MEDIUM BUSINESSES

A Thesis

Presented to the Faculty of the College of Business, Management & Accountancy

DE LA SALLE ARANETA UNIVERSITY

Victoneta Ave., Malabon City, Metro Manila

In partial fulfillment of the requirements for the degree of

Bachelor of Science in Accountancy

By

CHUA, HAZEL JOY D.

LEE, KYLA JOYCE C.

JANUARY 2021
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Recommendation Sheet

Researchers: Hazel Joy D. Chua and Kyla Joyce C. Lee

College: Business, Management and Accountancy

Title: The Effectiveness of Accounting Software in the Micro, Small and

Medium Businesses

Recommending Approval:

_________________________ February 23, 2021

Dr. Porfirio Catolico Jr. Date
Adviser

Approved by:

_________________________ __________
Dr. Glen De Leon Date
Chairperson

_________________________ February 25, 2021

Mr. Adolf Josef Yao Date
Member

_________________________ __________
Dr. Irene Dalog Date
Member

Recorded by:

_________________________ __________
PIC, Registrar’s Office Date
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Approval Sheet

This Thesis entitled THE EFFECTIVENESS OF ACCOUNTING SOFTWARE IN

THE MICRO, SMALL AND MEDIUM BUSINESSES by HAZEL JOY D. CHUA AND
KYLA JOYCE C. LEE, in partial fulfillment of the requirements for the degree of
BACHELOR OF SCIENCE IN ACCOUNTANCY, has been examined and is
recommended for acceptance and approval for ORAL EXAMINATION.

________________________
Dr. Porfirio Catolico Jr.
Adviser

Panel of Examiners

Approved by the COMMITTEE ON ORAL EXAMINATION with a grade of

________ on _____________________.

________________________
Dr. Glen De Leon
Chairperson

________________________ ________________________
Mr. Adolf Josef Yao Dr. Irene Dalog
Panel Member Panel Member

Accepted and approved as partial fulfillment of the requirements for the degree of
BACHELOR OF SCIENCE IN ACCOUNTANCY.

____________________ _______________________
Dr. Bernardo N. Sepeda Dr. Glen De Leon
VCAR Dean, CBMA
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Certification of Originality

This is to certify that the research work presented in this Thesis entitled “THE

EFFECTIVENESS OF ACCOUNTING SOFTWARE IN THE MICRO, SMALL AND

MEDIUM BUSINESSES” was prepared and submitted by the researchers to the College

of Business and Management-De La Salle Araneta University in partial fulfillment of the

requirements for the degree, Bachelor of Science in Accountancy. This study contains the

original work of the researchers except for those data and information that were taken from

other sources with proper referencing and acknowledgment.

. .

HAZEL JOY D. CHUA

Researcher

. .

KYLA JOYCE C. LEE

Researcher
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Acknowledgment

First and foremost, we give our thanks to our almighty God for You have

provided us wisdom, knowledge, and strength to go through the challenges and

hardships as we conduct this research. Through this, you have given us a lot of

opportunities to discover learn new things. To our dearest families, thank you for your

unending love and support and for providing us everything we need. We are much

grateful for your encouragement as it helped us a lot. To our supportive adviser,

professor, Dr. Porfirio Catolico Jr., your guidance through the past months helped us

a lot. Thank you for giving time to provide insights on our paper. We appreciate

greatly the knowledge and support that you have given us throughout the journey in

finishing our thesis. To our professor, dean, and program chair, Dr. Glen De Leon for

always gently reminding us of the deadline, guiding us through the process, and

helping us improve our thesis. Thank you for believing in us since day one of our

journey. To our research paper panels, Dr. Irene Dalog and Mr. Adolf Josef Yao, thank

you for sharing your insights to improve our research paper. We learned a lot from

you. To our classmates, thank you for reminding us that we are never alone in this

journey towards being certified public accountants. Thank you for helping us to reach

our target respondents on social media by showing your support and sharing the link

to our questionnaires. Your efforts showed us how great a team works. Lastly, to all

the people we may not be able to mention, thank you for playing a big part in our

journey. Your words give us the strength to keep on and continue reaching our dreams.
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Table of Contents

Page

TITLE PAGE .................................................................................................................1

RECOMMENDATION SHEET ....................................................................................2

APPROVAL SHEET .....................................................................................................3

CERTIFICATION OF ORIGINALITY ........................................................................4

ACKNOWLEDGMENT................................................................................................5

TABLE OF CONTENTS ...............................................................................................6

LIST OF TABLES .........................................................................................................8

LIST OF FIGURES .......................................................................................................9

LIST OF APPENDICES ..............................................................................................10

ABSTRACT.................................................................................................................11

CHAPTER

1 The Problem and a Review of Related Literature

Introduction .....................................................................................................13

Review of Related Literature ...........................................................................15

Synthesis ..........................................................................................................29

Theoretical Framework ....................................................................................29

Conceptual Framework ....................................................................................30

Statement of the Problem .................................................................................31

Hypothesis........................................................................................................31
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Scope and Limitation of the Study...................................................................32

Significance of the Study .................................................................................32

Definition of Terms..........................................................................................33

Acronyms .........................................................................................................36

2 Methods

Research Locale ...............................................................................................37

Research Design...............................................................................................38

Sampling Technique ........................................................................................38

Respondents of the Study.................................................................................38

Research Instrument.........................................................................................39

Data Gathering Procedure ................................................................................40

Statistical Treatment of the Data......................................................................41

3 Results and Discussion

Results and Analysis ........................................................................................42

4 Summary, Conclusion and Recommendation

Summary ..........................................................................................................57

Conclusion .......................................................................................................60

Recommendation .............................................................................................61

REFERENCES ............................................................................................................62

APPENDICES .............................................................................................................65

CURRICULUM VITAE ..............................................................................................95

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List of Tables

Table Page

1 Table 1. Distribution of Respondents by Business Category ..........................42

2 Table 2. Distribution of Respondents by MSME Sector .................................43

3 Table 3. Distribution of Respondents by Years in Operation ..........................44

4 Table 4. Distribution of Respondents by Years of Service Industry ...............44

5 Table 5. Perceived Financial Framework.........................................................45

6 Table 6. Perceived System Management .........................................................46

7 Table 7. Perceived System Integration and Data Recovery .............................47

8 Table 8. Perceived Resource Utility ................................................................49

9 Table 9. Differences in Mean on Respondents ................................................50

10 Table 10. Differences in Mean on Business Category .....................................52

11 Table 11. Differences in Mean on Years in Operation ....................................54

12 Table 12. Differences in Mean on Years of Service ........................................55

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List of Figures

Figure Page

1 Figure 1. Theoretical Framework ....................................................................29

2 Figure 2. Conceptual Framework ....................................................................30

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List of Appendices

Appendix Page

A Appendix A. Survey Questionnaire .................................................................65

B Appendix B. Letter to Respondents .................................................................78

C Appendix C. Letter of Intent ............................................................................79

D Appendix D. IP Registry Form ........................................................................80

E Appendix E. Instrument Validity Verification Certificate ...............................81

F Appendix F. Research Ethics Review ..............................................................82

G Appendix G. Research Ethics Review Application Form ...............................86

H Appendix H. General Research Ethics Checklist ............................................89

I Appendix I. Research Ethics Clearance Form .................................................92

J Appendix J. Turnitin Results ...........................................................................93

K Appendix K. Certificate of Statistical Treatment ............................................94

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Abstract

TITLE : The Effectiveness of Accounting Software in the Micro,

Small and Medium Businesses January 2021

RESEARCHER : HAZEL JOY D. CHUA AND KYLA JOYCE C. LEE

ADVISER : DR. PORFIRIO CATOLICO JR.

SCHOOL : De La Salle Araneta University

DEGREE CONFERRED : Bachelor of Science in Accountancy

This research studies the effectiveness of accounting software in micro, small and

medium enterprises in Quezon City. Businesses that are categorized as small, medium, and

large enterprises are the target participants in this study. Employees coming from

accounting departments are asked to participate in this study. This study seeks to determine

the efficiency of using accounting software for businesses such as manufacturing, service,

and merchandising on Micro, Small, Medium Enterprises around Quezon City. As

technology evolves, accounting also takes part in the improvement brought by it. The

researchers aim to determine how accounting software helps in the ordinary course of

business.

The respondents of the study are from the accounting department of different

MSME enterprises around Quezon City who are using Accounting Software for their

everyday transactions. The study used convenience sampling and the nonprobability

method. We used an adapted questionnaire from the School of Management Ethics

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committee, Cardiff Metropolitan University entitled “The impact of online accounting

software as a credit management tool on small business cash flow”. The statistical

treatment that is used in this study to analyze the data is frequency and percentage in for

the demographic profile of the respondents, weighted mean to find the effectiveness of

Accounting Software in MSME around Quezon city and five-point Likert Scale to

determine the mean of the results.

To determine the significant difference between the variables ANOVA was used.

The data were carefully analyzed and processed. Hence, we concluded that the Accounting

Software is indeed effective for everyday transaction.

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Chapter 1

The Problem and a Review of Related Literature

Introduction

The history of business can be traced from the early centuries where simple trading

and exchange of goods started. However, due to the loss of proper market value, it is hard

to know which goods are equivalent to the other goods. According to an article entitled:

History of Trade by Machiwala, I. (n.d.), “The money at first was a fundamental value or

commodity money, the examples are whale’s teeth, cattle, rare seashells and in Iraq, bread

was used as a form of money. The use of tools started when abacus was invented, it was

used to calculate the exchange of money or taxes by the empires or kingdoms.”

Businesses have experienced growth over the years with the help of technology and

innovations to supplement existing operational practices. Through time, machines were

created to carry out tasks and help in the efficiency of work. Eventually, these continued

to further improve, leading the modern-day businesses to experience a higher quality of

performance with the help of artificial systems such as software and tools. A lot of

businesses nowadays prefer investing in updated technology advances. As time went by a

lot of changes happened especially in the accountancy profession as stated by Pepe, A.A.

(2011) in an article entitled: The Evolution of Technology for the Accounting Profession

before the mere use of abacus helps a lot in computations that help accountants. Then the

invention of calculators came that made mathematical computation more accurate. An

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accountant should be a methodical and detail-oriented person and before the process of

identifying, measuring, and communicating financial information was being documented

by the use of paper records, columns of numbers, and handwritten statements.

As the twentieth century ended, the use of computers and accounting software

became popular. An electronic spreadsheet or Microsoft Excel is one of the examples of

these programs. The Accounting Software helps them to have more efficient and reliable

information. It increases the enhancement of traditional operations and production. Though

accounting software has different specialized features which can be customized according

to the business operations. Reports can be done immediately by entering the raw data.

These data also can be deciphered faster because of the systemized way of presenting.

There can be less error or oversight because computer systems do not allow journal entries

to be unequal.

As the population grew, the business also has increased its transaction from their

day-to-day operation. In sales and big transactions, they must record it without any errors.

According to Cameron, A. (2016) in an article entitled: Why Use Accounting Software for

Your Small Business, “Accounting Software improves efficiency, it is also easier for the

bookkeeper to record and adjust data and information. It automates accounting, by simply

encoding the data, it can automate its statement of position and generate invoices. It can

also simplify tax payment and filing; it keeps your transaction organized. It is protection

during auditing, it shows complete and accurate information. Lastly, it gives you the

running history of your business, it keeps track of your records.”

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Accounting software now became a trend and will be for the next following years.

With the continuous emergence of new improvisations and new equipment, businesses will

surely benefit from them. Software, on the other hand, ensures precision and accuracy to

deliver quality performance for the clients. The researchers choose this study to emphasize

the fast changes in the business world regarding automation. For someone who is about to

enter and who is currently under the transition of these changes, it is important to be

updated and to be on guard regarding this topic. Before officially entering the accounting

profession, an applicant needs to be computer literate and adaptive for future adjustments.

Technology has brought great changes and those had a positive impact on business

enterprises. One of the beneficial improvements brought by technology is accounting

software. Many researchers globally have studied accounting software and its impact on

businesses. However, there are still insufficient studies in the Philippines to provide

information on its effectiveness in the operations.

Review of Related Literature

History of Accounting

Accounting started at an early age; as the need of developing things and exchanging

goods arises, so is accounting and bookkeeping. According to an article entitled Financial

History: The Evolution of Accounting by Investopedia, “Accounting is known as the

Business language that has been used worldwide. Accountants are the translators of the

numerical information seen in financial statements. When the barter system started the need
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for the recording of information and data regarding the transaction and operation was also

discovered.”

As stated in the article entitled History of Accounting by the Strategic CFO.

“Accounting records are shown as found that it started in 2500 B.C. in an ancient

civilization like the Egyptian, Roman and Greek Empires as well as Arabia. It records the

taxation and public works. In 1000 B.C., Phoenicians made an alphabet with accounting to

avoid cheating in trades. The first bead and wire abacus invented was in the year 500 B.C.

Double Checking of Inventory started in 423 B.C. they were called ‘auditor’. Recording of

day-to-day operations started in the year 1200 to 1493 when businesses were required to

keep their records across the Italian Republic”. The year 1494 when Luca Pacioli wrote the

paper entitled “Everything about Arithmetic, Geometry, and Proportion”. This tackles the

debit which means “He owns” and credits “He trusts”. Showing the double-entry method

that improves the efficiency of the businesses. Primitive income and balance sheet

statements were made to summarize the transactions made. Innovations added in the

double-entry, the year 1500 to 1700 the East India Company develops capital and dividend

distribution. Financial accounting was used to gain investors, while managerial accounting

was used for business efficiencies.

The Industrial Revolution happened during the year 1700 to 1900 accounting was

used to gain financing and maintain efficiency. 1887, the first accounting organization was

developed in New York. 1896, the title and license as Certified Public Accountant

followed. The year 1920 to 1940 accounting was used to reduce fraud and scandals,
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(GAAP) Generally Accepted Accounting Principles together with (AICPA) American

Institute of Certified Public and FASB (Financial Accounting Standards Board). Lastly,

from 1940 to the Present AICPA and FASB worked together with the (SEC) Security

Exchange Commission to develop accounting standards. Codification is the current

practice and standards and the developing areas of accounting, this includes the use of

accounting software like Peachtree and Quickbooks.

Evolution of Technology

Accounting is known to be the language of business and accountants are the

interpreter of the records from the daily operation. These records are at risk from the error

of omission, transposition errors, rounding errors, error of commission, and many more.

Technology advancement makes the work of accountants easier and helps them to achieve

reliable, efficient, and effective data. Pepe, A.A. (2011) showed the changes in accounting

throughout the ages. The invention of abacus, although the abacus was not known to be

technology.

It was the start of research and development of technology, it triggers the people

back then to know how to make life easier. Then, the first calculator was invented to help

accountants with mathematical solutions. As technology advanced so did the accountant’s

expertness. At this point, a paper trail was used to keep the records of the everyday

transaction, by using columnar, journals, and many more. Accountants are known to be

detail-oriented people. In the twentieth-century programs such as Microsoft Excel as an

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accounting software were invented. There is no need for papers such as ledger, journal, and

calculators. The job became easier and less risky from errors. Information became available

in just a click. Accountants are now not just focused on the transactions but as an advisor

and IT staff. It became faster to input the data, process the data, and get an output that is

efficient and organized. There is also cloud computing, wherein the data is saved over the

internet and use software to be able to view. It saves space from accounting firm’s computer

hard drives. Due to the advancement accountants need also to be computer literate and gain

technical skills. It is the start of the age where accounting merges with the information

system.

Advantages of a Traditional Accounting System

The traditional accounting system is useful in the daily course of businesses. It

allows owners to record the transactions and keep track of their operations. One of the

advantages of this system refers to its availability. Pribanic (2020) said that another huge

benefit of a traditional accounting system is that when the power or internet goes out, this

won’t prevent users from accessing and working on account data. Since its dependency on

electric power is low, a traditional accounting system allows people to be productive even

in the case of a power shortage. This gives areas that are prone to electrical problems an

advantage since accountants can continue to process their data despite such shortcomings.

Another advantage pointed out by Pribanic (2020) is regarding system errors. Since

traditional accounting systems use manual documentation and preparation of files, users
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do not have to deal with systems crashing or file corruption. Since the new accounting

systems make use of technology, users who are not familiar with the user may experience

trouble using it. This could lead to potential data loss and inefficiency in work.

Lastly, the traditional accounting system caters to the functionality of double-entry.

According to Pribanic (2020), this “provides a way for users to eliminate data entry errors.

With a traditional accounting system, each transaction is entered as a debit, as well as a

credit in two separate accounts.” This creates a safeguard to make sure entries are recorded

properly.

Disadvantages of a Traditional Accounting System

While the traditional accounting system offers a lot of functionalities to help in

business operations, it still has its downsides. Users might still experience minor issues

regarding the manual system. “A major disadvantage of a traditional accounting system is

how expensive it can be. Completing accounting tasks with a traditional accounting system

takes lots of time and is labor-intensive. An automated accounting system not only saves

users time that could be spent on making the business more successful but also saves the

company money. While a traditional accounting system is less expensive as far as up-front

cost is concerned, in the long run, an automated accounting system is much less expensive

and time-consuming while at the same time being much safer to store critical business data

(Pribanic (2020).”
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A traditional accounting system is still vulnerable to erroneous data. Considering

how much data is entered every single day, the chances of committing errors are nearly not

impossible. Pribanic (2020) also says that while a traditional accounting system seeks to

improve data entry errors with its multiple entry processes, data entry errors are still much

more likely with a manual system. With a traditional accounting system, users are forced

to enter data twice which is labor-intensive and time-consuming. This creates additional

working hours and delays in the workplace. Correcting each entry and updating them will

take a long time.

Lastly, since manual systems use hard copies of data, they might only have one to

three copies. In case of loss, it is difficult to trace back or provide evidence of transactions

and files. Companies must keep a physical copy of the data, which can easily be stolen or

destroyed in a fire or flood (Pribanic, 2020). Natural disasters could easily wipe out all the

files in an instant and never be able to recover any of them. There might also be fortuitous

events that could occur which could cause data loss for the company. The files might be

less secure since there is no way to retrieve a file in case it permanently gets lost.

Modern Accounting System

With the help of technology, accountants started using software to enable faster and

more efficient recording and retrieving of data. To simply put, modern accounting systems

deal with accounting related transactions that make use of software such as QuickBooks or

Microsoft Excel in computing and recording data.

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Advantages of a Modern Accounting System

Accounting software programs give users a variety of functionalities that are

helpful in the business. Its simplicity is one of the advantages of the modern accounting

system. “A wide variety of accounting software programs are consumer-friendly. Business

owners can shop around to find a program that is easy to install, learn and use. Once the

system is established with bank accounts, debts, and vendors, the business owner only

needs to update information as it comes in (Leonard, 2019).” With this at hand,

bookkeeping and accounting-related activities will be much easier since the accounting

software already has a built-in system aligned with accounting processes. Users only need

to enter the data and store the information in the software.

The traditional accounting system made use of calculators and abacus in computing

the amounts present in the process. With the help of modern technology, there will be fewer

mathematical errors since these programs are designed to provide “accurate and reliable

information (Leonard, 2019).” The erroneous amounts might be lessened, and it will surely

be more efficient to use.

A special ability of the modern accounting system is its ability to collaborate.

“Many software programs allow business owners to set permissions that give an outside

bookkeeper or accountant access to the data. Business owners can sync information with

bank and credit accounts and import data with a click of a mouse. This allows business
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owners to quickly reconcile accounts and import the correct information that needs to be

reviewed by key advisors. (Leonard, 2019).”

When it comes to professional services, “Hiring an in-house bookkeeper or

outsourcing the work to a bookkeeper or accounting firm can be costly. (Leonard, 2019).”

With that, accounting software might be a better option, especially for small businesses.

“The software program has an upfront cost and might require contracting a bookkeeper to

set up the accounts and coach the business owner on using the program, but it quickly

becomes cost-effective. The owner doesn't need to pay for anything beyond the software

purchase and setup. Most programs work with operating systems for years and only

occasionally require an inexpensive upgrade. (Leonard, 2019).” Therefore, modern

accounting systems provide cost-effectiveness to their users.

Disadvantages of a Modern Accounting System

Despite the variety of functionalities modern accounting could offer, it is still

susceptible to issues. One of those is the potential fraud. Computerization of data is a great

option but it allows more opportunities for hackers to creep into the data of a company

(Leonard, 2019). If cybersecurity is weak, it might deal serious damage by overwriting

files and gaining access to confidential data. Leonard (2019) adds, “This puts assets at risk

and creates potential liability if hackers use employer tax identification to open credit cards

and business loans. There is also the risk of someone within the business accessing the
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information, perhaps pilfering money from daily deposits and altering the data in the

program.”

While the traditional accounting system is less dependent on electric availability,

the modern accounting system highly relies on it. Users may experience data loss due to

sudden power outages. Technical issues are also pretty common in this type of system.

“Computers might acquire a virus and fail. There is also the potential of users incorrectly

performing software tasks that they are not familiar with. If a user tries to do one thing but

inadvertently does something else, it might take some work to undo the error (Leonard,

2019).”

No matter how efficient the software is, there might still be underlying potential

errors. Data entered must be correct, otherwise, it will still reflect as erroneous transactions.

“Bookkeeping records are only as good as the data put into the system (Leonard, 2019).”

This might lead to misstatements in financial reporting.

Accounting Software

Improvement in technology brought changes in the Accounting profession. As it

evolves, software for accounting purposes was developed to help practitioners in their jobs.

According to Ghasemi (2011), “Accounting Software contains the basic accounting

functions such as input, processing, and output. There are two classifications of accounting

software as low-end and high-end.” (p.116) Low-End is All-in-One software, which means

all of the functions of the accounting system are performed within one software. Therefore,
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low-end software is used for small companies, these are the sample Low-End Accounting

Software: BusinessVision 32, MAS 90 & MAS 200 (Best Software), QuickBooks Pro 2003

(Intuit), ACCPAC Pro Series (ACCPAC International), and Vision Point 2000 (Best

Software). High-End Accounting Software is complex and expensive business accounting

software that is also known as Enterprise Resource Planning or ERP software, these are

the sample High-End Accounting software: Axapta (Microsoft Software), e-Business Suite

(Oracle), MAS 500 (Best Software), Solomon (Microsoft), ACCPAC Advantage Series

Enterprise Edition (Best Software). This enables users to digitize services in different fields

of industry, particularly in business. It was also stated by Kenton (2020) in an Article from

Accounting Software, Accounting Software is the assistants of the bookkeeper and

accountants in recording transactions and preparing financial statements.

Different firms need different accounting software, some may need generic, off-

the-shelf accounting software while others need customized and complex accounting

software that would fit their business needs. Accounting software allows businesses to

backtrack easier to old accounting data and is helpful to internal and external auditing.

These tasks before are done and performed by hand. Accounting Software also allows

businesses to keep records without taking up physical space that makes it more cost-

friendly especially in businesses that are renting their office spaces.

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Advantages of Accounting Software

Though accounting technology threatens the accounting profession according to

Gordon, S. (2018). In his study entitled Technology Advancement Influence in Accounting

and Information System Fields (p.9)., Gordon (2018) says “Accounting fields are projected

to grow more as technology advances due to it helping the accounting profession to be

easier and precise. (p.12) But the truth is that it’s not so much that the career itself is good

or bad, but rather that it’s the right fit for certain people and not for others” the growth in

accounting profession of accounting technology are expected to be favorable by the help

of Information System the job of accountants are more easy and efficient.

Disadvantages of Accounting Software

Acevedo (2017) mentions five disadvantages of accounting software. The first one

is the loss of data or service. “When a business is reliant on accounting software, any loss

of service due to a power or computer outage could cause a work disruption. Work

disruptions can prevent the input of new information as well as prevent access to stored

information. Additionally, if the information is not properly backed up, a computer outage

could result in lost financial data. (Acevedo, 2017).” Since computers are reliant on

electricity sources, unpredictable events that may cause shortages will disrupt their

processes.

The second disadvantage deals with incorrect information. According to Acevedo

(2017), “The information in an accounting system is only as valid as the information put
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into the system. Since most accounting systems require some manual input of data,

financial results could be incorrect unless all input data is reviewed. If there is a tendency

to only review the final reports or output of an accounting system, it may be difficult to

find faulty information.”

Users might also come across system configuration. “Every business has unique

aspects that may cause difficulties when it tries to tailor a generic accounting software

package to its needs. While customization is available for many programs, it may cause

downtime and potential inaccuracies if not done correctly. Also, as a business grows, there

may be a need to change accounting software packages; this could cause a large disruption,

as information must be migrated and new training is needed for personnel (Acevedo,

2017).”

“A disadvantage of accounting software is the cost involved. Beyond the initial

outlay to purchase the software, there is the cost of maintenance, customization, training,

and computer hardware. While time savings may justify the cost, for some businesses it

may take years before an accounting software investment pays for itself (Acevedo, 2017).”

Lastly, Acevedo (2017), “Information stored electronically can be manipulated and

accessed if proper controls and security measures are not in place. Strict controls are needed

to make sure only authorized personnel use the accounting software and have access to

reports. Since financial data can be sensitive and confidential, using accounting software

creates the potential for fraud.”

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Accounting Information System

An accounting information system (AIS) is a structure that a business uses to

collect, store, manage, process, retrieve, and report its financial data so it can be used by

accountants, consultants, business analysts, managers, chief financial officers (CFOs),

auditors, regulators, and tax agencies (Fontinelle, 2020.) An accounting information

system (AIS) refers to tools and systems designed for the collection and display of

accounting information so accountants and executives can make informed decisions. It is

considered a pivotal component of finance offices throughout the world. The systems are

largely software-based and can be deployed as a part of a company’s IT solutions

(Accounting Information System (AIS)).

Accounting Information Systems (AIS) are tools that, when incorporated into the

field of Information and Technology systems (IT), are designed to help in the management

and control of topics related to an organization's economic-financial area. But the stunning

advance in technology opened the possibility of generating and using accounting

information from a strategic viewpoint (El Louadi, 1998, as cited in Soudani, 2012).

Accounting Information System (AIS) is vital to all organizations (Borthick and Clark,

1990; Curtis, 1995; Rahman et al., 1988; Wilkinson, 1993; Wilkinson et al., 2000, as cited

in Soudani, 2012) and perhaps, each organization either profit or non-profit-oriented need

to maintain the AISs (Wilkinson, 2000: 3-4, as cited in Soudani, 2012). On the other hand,

an AIS is a whole of the related components that are put together to collect information,

raw data and transform them into financial data to report them to decision-makers (Mahdi
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Salehi, Vahab Rostami and Abdolkarim Mogadam, 2010, as cited in Soudani, 2012). To

better understand the term ‘Accounting Information System’, the three words that

constitute AIS would be elaborated separately. Firstly, literature documented that

accounting could be identified into three components, namely information system,

“language of business” and source of financial information (Wilkinson, 1993: 6-7, as cited

in Soudani, 2012). Secondly, information is valuable data processing that provides a basis

for making decisions, taking action, and fulfilling a legal obligation. Finally, the system is

an integrated entity, where the framework is focused on a set of objectives (Bhatt, 2001;

Thomas and Kleiner, 1995, as cited in Soudani, 2012).

Roles of Accounting Information Systems (AIS)

According to Romney & Steinbart (2018), these six components enable an AIS to

fulfill three important business functions: (1) Collect and store data about organizational

activities, resources, and personnel. Organizations have some business processes, such as

making a sale or purchasing raw materials, which are repeated frequently; (2) Transform

data into information so management can plan, execute, control, and evaluate activities,

resources, and personnel; (3) Provide adequate controls to safeguard the organization’s

assets and data; (4) Efficiency increases, as manual entries are prone to errors, with the

help of accounting software it can be lessened; (5) Simplifying taxes helps the businesses

to track all transactions and to file returns. (6) Reduce data loss, it helps businesses to back

up their data and keep important files especially in using cloud accounting systems.
 29

In a study entitled Implementing Accounting Software In Small Businesses In New

Zealand: An Exploratory Investigation, authors Pulakanam & Suraweera in 2010 stated

that the accounting software, which comes under the broad definition of Accounting

Information Systems (AIS), is computer software that records and processes accounting

transactions within functional modules such as accounts payable, accounts receivable,

payroll and trial balance. It may be developed in-house by the organization using it, may

be purchased from a third party (off-the-shelf packaged software such as MYOB and

QuickBooks), or maybe a combination of a third-party application software package with

local modifications. It varies greatly in its complexity and cost. Today’s packaged

accounting software not only records financial transactions and produces accounting

reports, but they include functionality for managerial decision-making aimed at gaining a

competitive advantage.

Synthesis

The literature review presented an overview of accounting software and businesses.

Studies showed the roles of accounting information on accounting software, as well as its

processes. Each business may be different in types but all of them must consider accounting

software as a key tool in their operations.

Theoretical Framework

This study looks into the correlation of accounting software, accountants,

accounting information systems, and MSMEs. These factors affect each other in the
 30

process. The first illustration contains the users who mainly carry out tasks in the

accounting information system. It is followed by the Accounting Information System

(AIS). The arrow is followed by the Accounting Software. The third arrow is the

Accounting Software which is the main tool that is used in AIS. The fourth arrow is

Business Operations (MSMEs) which is the main premise of the whole process.

This study will examine the impact of these factors on MSMEs.

Accounting Business
Accounting
User Information Operations
Software
System (AIS) (MSMEs)

Figure 1. Theoretical Framework

Conceptual Framework

MSME Sector

Business category
Effectiveness of
accounting software
Years in operation

Years of service in
the current firm

Figure 2. Conceptual Framework

 31

Statement of the Problem

This study will assess the effectiveness of accounting software in micro, small,

medium businesses. Specifically, the following questions will be answered:

1. What is the demographic profile of the respondents as to:

1.1 MSME Sector

1.2 Business category

1.3 Years in operation

1.4 Years of service in the current firm

2. How do respondents assess the effectiveness of the accounting software on the

MSME in their business operation in terms of the following category?

2.1. Financial Framework

2.2. System Management

2.3. System Integration & Data Recovery

2.4. Resource Utility

3. Is there a significant difference in the respondent's assessment of the effectiveness

of the accounting software in the business operation of the MSME based on the category

when the profile of the respondent is considered?

Hypothesis

Hence, the study hypothesis is as follows:

 32

1. There is no significant difference in the respondent's assessment of the

effectiveness of the accounting software in the business operation of the MSME

based on the category when the profile of the respondent is considered.

Scope and Limitation of the Study

The respondents of this study are owners or employees from accounting

departments from small-medium enterprises in Quezon City. Micro enterprises are those

of which capital does not exceed Php 3,000,000 (three million pesos). Small enterprises

are those of which capital ranges from Php 3,000,001 to Php 15,000,000 (three million and

one peso to fifteen million pesos). Medium enterprises are those of which capital ranges

from Php 15,000,001 to Php 100,000,000). The effectiveness of the accounting software

will be confined to sector category, the efficiency of Accounting Technology, Financial

Framework, System Integration & Data Recovery, Resource Utility, and the standard

where online accounting software helped the firm.

This study will be confined only to three industry sector categories such as

manufacturing, service, and merchandising. This study will not include online stores as

they do not particularly pay direct taxes to the government and most of their capital is

below three million pesos. It will be conducted this 2021.

Significance of the Study

The findings of this study will mainly benefit the following:

 33

Businesses that are not yet using accounting software will be informed about the

benefits of using accounting software.

Businesses that are using accounting software will be more knowledgeable about

its usage.

The Accounting Department will further discover the effect on its department.

Accounting Profession and linked job description will know the effects to the

profession if there are jobs that will not be necessary if accounting software will be used.

Accounting Information students will gain insights into how the concept of the

accounting information system works in the actual business environment.

Accounting Information Professors will gain insights on the improvement of the

accounting information systems and accounting software in businesses.

Future researchers who shall study the further expansion and improvement of

accounting information software will gain insights on the background and effectiveness of

accounting software.

Definition of Terms

Accountants. The term accountant refers to a professional who performs

accounting functions such as account analysis, auditing, or financial statement analysis.

Accountants work with accounting firms or internal account departments with large

companies. They may also set up their own, individual practices. After meeting state-
 34

specific educational and testing requirements, these professionals are certified by national

professional associations.

Accounting Information System (AIS). An Accounting Information System

(AIS) is generally a computer-based method for tracking accounting activity in conjunction

with information technology resources (Fontinelle, 2011, as cited in Belfo and Trigo,

2013).

Automation. Automation is the creation and application of technologies to produce

and deliver goods and services with minimal human intervention. The implementation of

automation technologies, techniques and processes improve the efficiency, reliability,

and/or speed of many tasks that were previously performed by humans. Automation is

being used in several areas such as manufacturing, transport, utilities, defense, facilities,

operations, and lately, information technology (Automation).

Double-entry System. Double-entry system refers to the concept used in

accounting to record transactions. It states that every financial transaction has equal and

opposite effects in at least two different accounts. (Hayes, 2020). This results in an entry

on two sides: debit and credit. The Debit side is on the left side of the ledger while credit

is on the right side. It is an inherent rule to have at least one entry on the other side when

one increases or decreases.

Micro, Small, Medium Enterprises (MSMEs). The Magna Carta for MSMEs

defines MSMEs (using asset size) as follows: (1) Micro: Up to Php 3,000,000; (2) Small:
 35

Php 3,000,001 – 15,000,000; (3) Medium: Php 15,000,0001 – 100,000,000. (P.2) (MSME

Development in the Philippines). Based on these categories, it is classified as micro, small,

or medium regardless of the type of business ownership (i.e., single proprietorship,

cooperative, partnership, or corporation) (The MSME Sector).

Accounting Department. It is part of a company's administration that is

responsible for preparing the financial statements, maintaining the general ledger, paying

bills, billing customers, payroll, cost accounting, financial analysis, and more. The head of

the accounting department often has the title of the controller (Averkamp, H. (n.d.)).

The Error of Omission. Forgetting to enter transactions to the journals or input

data to excel or any accounting software. Errors of Omission are hard to find and one way

to check it is by checking if the debits are equal to credits.

Transposition Errors. It is when two digits are reversed or also called

typographical errors in numbers. It can be checked by checking the trial balance with the

totals in your bank statements.

Rounding Errors. It is when wrong rounding can make a great impact and make

future errors. It can be fixed when reconciling the books more often.

The Error of Commission. It is when the input process was correct, but the value

is wrong instead of adding it was subtracted and vice versa. It could be checked by checking

the trial balance.

 36

Acronyms

AICPA. American Institute of Certified Public Accountant

AIS. Accounting Information System

CPA. Certified Public Accountant

FASB. Financial Accounting Standards Board

GAAP. Generally Accepted Accounting Principles

MSME. Micro, Small, Medium Enterprises

SEC. Security of Exchange Commission

 37

Chapter 2

Methods

In this chapter, the research methodology used in the study is described. The

geographical area where the study was conducted, the study design, and the population and

sample are described. The instrument used to collect the data, including methods

implemented to maintain the validity and reliability of the instrument, are described.

Research Locale

This study is conducted in Quezon City, Philippines. The place selected is in the

National Capital Region. In 2013, it had a working-age population of 63.5 % and applied

to the city, it is estimated to be 1,348,546, making the non-working approximately 36.5%

who are the housewives, students, PWD, and retirees (Quezon City Government).

Quezon City is the largest city in the Philippines in terms of population size as it

contributes 23.19% to the 11.8 million population of the NCR. On a national level, it shared

2.8% of the total population of 76.5 million. The Quezon City is located on the northeast

portion of Metro Manila and bounded on the north by Caloocan City and San Jose del

Monte City, Bulacan, on its east San Mateo and Marikina, on the south by Pasig,

Mandaluyong, San Juan and Manila and on the west by Valenzuela, Caloocan, and Manila.

Quezon City has six districts and 142 barangays. Over 73,227 business enterprises are
 38

registered in Quezon City as of the year 2020 which are engaged in financial services,

wholesale/retail services, real estate, and many more (Quezon City Government).

Research Design

To determine the effectiveness of Accounting Software in micro, small and medium

enterprises, a descriptive research design will be used with quantitative methods. The

survey method will be utilized to evaluate the extent of use of accounting software in

different enterprises’ daily transactions. Correlation methods will also be used to measure,

understand and assess the statistical relationship between the variables.

Sampling Technique

The researchers used the convenience sampling technique. This is a nonprobability

method where respondents chose are the ones who are available by the time of the study.

In this sampling method, the researchers are targeting to distribute the survey

questionnaires to the employees working at an accounting department coming from

different companies who use accounting software for their day-to-day transaction. The

scope of the area is Quezon City. The researchers target to acquire a sample size of four

hundred (400) respondents.

Respondents of the Study

The respondents of the study are qualified Filipinos who are using accounting

software in recording their day-to-day operations. Four hundred (400) respondents shall be
 39

chosen to participate in the study. Each respondent shall be given time to answer the

questionnaires. After collecting the responses, the data collected shall be computed,

analyzed, and recorded. The data shall be destroyed three months after the submission of

the responses.

Research Instrument

This study will use an adapted survey questionnaire from a study by Olamide

Osinowo entitled, “The impact of online accounting software as a credit management tool

on small business cash flow.” The adapted questionnaire received its ethical approval from

the School of Management Ethics committee, Cardiff Metropolitan University.

The survey questionnaire consists of three parts. The first part shows the

demographic profile of the respondents as well as their workplace. The Demographic

profile includes the business category, MSME sector, years in operation, and years of

service in the current firm. Questions regarding the firm being a taxpayer and accounting

software user are also included.

The second part of the questionnaire seeks the respondent’s evaluation of the

effectiveness of the accounting software. This part is divided into four subparts, namely,

(1) Financial Framework; (2) System Management; (3) System Integration & Data

Recovery; and (4) Resource Utility. Each subpart is measured using a five-point Likert

scale labeled as, “Very Inefficient (1),” “Inefficient (2),” “Moderate (3),” “Efficient (4),”
 40

and “Very Efficient (5).” Higher scores relate to the higher effectiveness of the accounting

software.

The third part is an assessment of the respondent’s regarding the usage of

accounting software. It is also measured using a five-point Likert scale labeled as, “Not at

all,” "Low extent," "Moderate Extent," "High Extent," and "Very High Extent.” The higher

the respondent scores, the more satisfaction shows upon using accounting software. The

link used in the survey questionnaire is provided in the references section.

Data Gathering Procedure

Before the survey proper, the researchers asked for the permission of the

respondents to participate in the study. They shall be given a consent form to be filled up

before answering the survey. This is to ensure that their data shall only be used for

academic purposes only. After three months, the collected data shall be destroyed.

The researchers created an online survey questionnaire using Google Forms to be

sent to respondents who agreed to participate in the study. The survey questionnaire shall

be answered by either employee in an accounting department or the owner of the firm.

Participants shall be given time to respond, and their responses shall be collected once they

finished submitting the questionnaire.

 41

Statistical Treatment of the Data

ANOVA test shall be used to determine whether there is a significant difference

between respondent’s profile and the effectiveness of accounting software. The following

measures will be used to analyze the data gathered from the survey responses:

1. Frequency and percentage will be used to describe the demographic profile of the

respondents.

2. Weighted mean and median will be used to determine the level of effectiveness of

the accounting software.

3. ANOVA will be used to compare between two independent groups to determine

whether there is a significant difference.

 42

Chapter 3

Results and Discussion

This chapter provides a summary of results, presentation, analysis, and

representation of the topic “The Effectiveness of Accounting Software in the Micro, Small

and Medium Businesses” based on the data gathered through survey questionnaires.

Demographic Profile of the Respondents

The demographic profile of the respondent includes the Business Category, MSME

Sector, Years in Operation, and years of service industry of the respondent’s firm. The data

are analyzed using frequency, percentage, and weighted mean.

1.1 Business Category

Table 1

Distribution of Respondents by Business Category

Category Frequency Percentage

Manufacturing Industry 60 15.0

Service Industry 225 56.3

Merchandising Industry 115 28.7

Total 400 100.0

 43

Table 1 shows the distribution of respondent’s as to their business category.

Majority of the respondents were in the service industry (f = 225, % = 56.3), followed by

merchandising industry with (f = 115, % = 28.7.) and the least sector is manufacturing with

(f = 60, % = 15).

1.2 MSME Sector

Table 2

Distribution of Respondents by MSME Sector

Sector Frequency Percentage

Micro: not more than Php

107 26.8
3,000,000
Small: Php 3,000,001 –
122 30.5
Php 15,000,000
Medium: Php 15,000,001 –
171 42.8
Php 100,000,000
Total 400 100

Table 2 shows the distribution of respondent’s as to their MSME Sector. Majority

of the respondents is Medium Enterprises (f = 171, % = 42.8), followed by Small

Enterprises with (f = 122, % = 30.5) and the least is Micro Enterprises with (f=107,

%=26.8).

1.3 Years in Operation

Table 3
 44

Distribution of Respondents by Years in Operation

Years Frequency Percentage

1 to 5 years 153 38.3

6 to 10 years 119 29.8

11 to 15 years 16 4.0

16 to 20 years 112 28.0

Total 400 100
Table 3 shows the distribution of respondent’s years in operation. Majority of the

respondents were 1 to 5 years (f = 153, % = 38.3), followed by 6 to 10 years with (f = 119,

% = 29.8.), next is 16 to 20 years with (f = 112, %= 28.0) and the least is 11 to 15 years

with (f = 16, % = 4).

1.4 Years of Service Industry

Table 4

Distribution of Respondents by Years of Service Industry

Years Frequency Percentage

1 to 5 years 272 68.0

6 to 10 years 96 24.0

11 to 15 years 16 4.0

16 to 20 years 16 4.0
Total 400 100
 45

Table 4 shows the distribution of respondent’s as to their years of service industry.

Majority of the respondents were in the service industry for 1 to 5 years (f = 272, % =

68.0), followed by 6 to 10 years with (f = 96 % = 24.0) and the least with 11 to 15 and 16

to 20 years with (f = 16, % = 4.0).

Respondents Assessment on the Effectiveness of the Accounting Software on the

MSME in Their Business Operation in Terms of the Following Category

2.1 Financial Framework

Table 5

Perceived Financial Framework

Frequency
Items
VI I M E VE Median Mean
(1) (2) (3) (4) (5) (Md) (M)
1. Provides accurate, reliable and 2 12 59 120 207 5.00 4.30
up-to-date financial information
2. Adheres to the highest 4 8 88 141 159 4.00 4.11
standards of statutory reporting
to the Companies House and
the HMRC
3. Processes financial data in a 7 10 61 141 181 4.00 4.20
reliable and understandable
way
4. Records invoice for orders 0 3 71 145 181 4.00 4.26
using standard billing and
contract terms
5. Calculates tax (including VAT) 0 5 34 160 201 5.00 4.39
and interest payments
accurately
Total 4.4 4.25
 46

(5.00) Very Efficient; (4.00) Efficient; (3.00) Moderate; (2.00) Inefficient; (1.00) Very

Inefficient.

Table 5 shows the frequency distribution of the respondents’ perceived assessment for

the financial framework dimension. Overall, the respondents’ assessment implies that there

is a positive attitude in the respondents’ perception towards financial framework as seen

by the total positive responses. Item number 5 “Calculates tax (including VAT) and interest

payments accurately” has the highest positive attitude score (Md = 5, M = 4.39) compared

to the other items. Item number 2 “Adheres to the highest standards of statutory reporting

to the Companies House and the HMRC” got the least attitude score with (Md = 4, M =

4.11). All indicators under the financial framework dimension got a positive median score

of (Md = 4.4) which implies that the respondents perceived assessment for the financial

framework domain is effective. The mean score for this domain is (M = 4.25) this shows

that in terms of Financial Framework, Accounting Software is Efficient.

Table 6

Perceived System Management

Frequency
Items
VI I M E VE Median Mean
(1) (2) (3) (4) (5) (Md) (M)
1. Provides unlimited, free support on 0 5 93 97 205 5.00 4.26
the use of the application
2. Improves time planning, and 0 4 70 113 213 5.00 4.34
procedural skills
3. Improves book-keeping & 0 2 47 113 238 5.00 4.47
accounting, and payroll skills
 47

4. Administers knowledge of the 0 2 64 160 174 4.00 4.27

profitability of the business
5. Reduces the need for in-house IT 0 3 70 153 174 4.00 4.25
expertise
Total 4.32 4.32

Table 6 shows the frequency distribution of the respondents’ perceived assessment

for the system management dimension. Overall, the respondents’ assessment implies that

there is a positive attitude in the respondents’ perception towards system management as

seen by the total positive responses. Item number 3 “Improves book-keeping &

accounting, and payroll skills” has the highest positive attitude score (Md = 5, M = 4.47)

compared to the other items. Item number 5 “Reduces the need for in-house IT expertise” got

the least attitude score with (Md = 4, M = 4.25). All indicators under the system

management dimension got a positive median score of (Md = 4.6) which implies that the

respondents perceived assessment for the system management domain is effective. The

mean score for this domain is (M = 4.32). This shows that in terms of System Management,

Accounting Software is Efficient.

Table 7

Perceived System Integration and Data Recovery

Frequency
Items
VI I M E VE Median Mean
(1) (2) (3) (4) (5) (Md) (M)
1. Sends invoices to customers 0 5 99 80 216 5.00 4.27
quicker and receive payments
quicker
2. Enables the in-built automated 0 4 84 98 214 5.00 4.31
credit control feature to collect
 48

payments from customers within

60 days
3. Simplifies credit control by chasing 0 1 78 131 190 4.00 4.28
payments from customers
4. Enables interaction with other 0 2 77 140 181 4.00 4.25
banking systems and clearing
houses when payments are made
5. Enables modifications with other
software and systems (e.g. 0 1 63 139 197 4.00 4.33
Payment processors, credit
management add-on)
6. Enables speedy data backup with
0 2 55 169 174 4.00 4.29
zero data loss in the event of a
network malfunction.
7. Provides high system uptime as
network servers are always 0 1 70 163 166 4.00 4.24
available whilst customers’ data is
safe
Total 4.29 4.28

Table 7 shows the frequency distribution of the respondents’ perceived assessment

for system integration and data recovery dimension. Overall, the respondents’ assessment

implies that there is a positive attitude in the respondents’ perception towards system

integration and data recovery dimension as seen by the total positive responses. Item

number 5 “Enables modifications with other software and systems (e.g. Payment

processors, credit management add-on)” has the highest positive attitude score (Md =4, M

= 4.33) compared to the other items. Item number 7 “Provides high system uptime as

network servers are always available whilst customers’ data is safe” got the least attitude

score with (Md = 4, M = 4.24). All indicators under the system integration and data

recovery dimension got a positive median score of (Md = 4.29) which implies that the

respondents perceived assessment for the system integration and data recovery domain is
 49

effective. The mean score for this domain is (M = 4.28). This shows that in terms of System

Integration and Data Recovery, Accounting Software is Efficient.

Table 8

Perceived Resource Utility

Frequency
Items
VI I M E VE Median Mean
(1) (2) (3) (4) (5) (Md) (M)
1. Enables software accessibility 0 4 67 123 206 5.00 4.33
anywhere & at any time, and
on a mobile phone
2. Enables software suitability and 0 0 65 137 198 4.00 4.33
appropriateness to meet business
requirements
3. Enables real time management of 0 2 69 123 206 5.00 4.33
cash flow and credit sales
4. Assess the risk of some business 0 0 80 123 197 4.00 4.29
operation and prediction of future
earnings

5. Assess the risk of the safety and

security of business financial 0 0 48 138 214 5.00 4.42
information against hackers.
6. Enables simultaneous access and 0 1 63 156 180 4.00 4.29
engagement with the Accountant
7. Reduces reliance on Traditional 0 10 71 162 157 4.00 4.17
Accountants

Total 4.43 4.31

Table 8 shows the frequency distribution of the respondents’ perceived assessment for

resource utility dimension. Overall, the respondents’ assessment implies that there is a

positive attitude in the respondents’ perception towards resource utility dimension as seen

by the total positive responses. Item number 5 “Assess the risk of the safety and security of

business financial information against hackers” has the highest positive attitude score (Md =5,
 50

M = 4.42) compared to the other items. Item number 7 “Reduces reliance on Traditional

Accountants” got the least attitude score with (Md = 4, M = 4.17). All indicators under the

resource utility dimension got a positive median score of (Md = 4.43) which implies that

the respondents perceived assessment for the resource utility domain is effective. The mean

score for this domain is (M = 4.31). This shows that in terms of Resource Utility,

Accounting Software is Efficient.

Significant difference in the respondent's assessment on the effectiveness of the

accounting software in the business operation of the MSME based on the category

when the profile of the respondent is considered.

3.1 MSME Sector and Perceived Dimensions/Categories

Table 9

Differences in Mean on Respondents Sector with the different Dimensions

F- P-
Micro Small Medium Decision
Value Value
Categories M M M
Financial Framework 4.12 4.11 4.43 13.447 .000* Reject Ho
System Management 4.07 4.21 4.54 20.768 .000* Reject Ho
System Integration 4.03 4.04 4.60 44.328 .000* Reject Ho
Resource Utility 4.04 4.16 4.58 34.062 .000* Reject Ho
*Significant
To determine mean differences the MSME sector and the assessed effectiveness of

the accounting software for the different categories, a one-way ANOVA was performed.
 51

Levene’s test suggests that there was no violation on the test of homogeneity for the

categories System Management (p ≥ .05) therefore equal variances between the groups for

this category are assumed. However, there was a violation on the test of homogeneity

Financial Framework (p < .05), System Integration (p < .05), Resource Utility (p < .05)

therefore equal variances between the groups for these categories are not assumed. The

corresponding results unassumed means were adjusted using WELCH ANOVA.

Table 9 shows that there was a statistically significant difference between MSME

sector and respondents assessment on the assessed effectiveness of the accounting software

for the Financial Framework category [F(2, 226) = 13.447, p < .000], System Management

category [F(2, 397) = 20.768, p < .000], System Integration category [F(2, 231) = 44.328,

p < .000] and Resource Utility category [F(2, 227) = 34.602, p < .000]. This implies that

there is enough evidence to reject the null hypothesis, that is, respondents who belong to

any group under sector variable have a different perceptions on their assessed effectiveness

of the accounting software for the different categories.

With the help of modern technology, there will be fewer mathematical errors since

these programs are designed to provide “accurate and reliable information (Leonard,

2019).” The erroneous amounts might be lessened, and it will surely be more efficient to

use. Regardless of age, accounting software is easy to use and is efficient in daily

operations.

3.2 Business Category and Perceived Dimensions/Categories

Table 10
 52

Differences in Mean on Business Category with the different Dimensions

F- P-
Manufacturing Service Merchandising Decision
Categories Value Value
M M M
Fail to
Financial
4.27 4.25 4.24 .061 .941 Reject
Framework
Ho
System Reject
4.10 4.35 4.36 5.332 .006*
Management Ho

System Reject
4.38 4.32 4.14 4.030 .019*
Integration Ho
Fail to
Resource
4.35 4.31 4.28 .404 .668 Reject
Utility
Ho
*Significant

To determine to mean differences in the Business Category and the assessed

effectiveness of the accounting software for the different categories, a one-way ANOVA

was performed. Levene’s test suggests that there was a violation on the test of homogeneity

for Financial Framework (p < .05), System Management (p < .05), System Integration (p

< .05), and Resource Utility (p < .05) therefore equal variances between the groups for

these categories are not assumed. The corresponding results were adjusted using WELCH

ANOVA.

Table 10 shows that there was a statistically significant difference between business

category and respondents assessment on the assessed effectiveness of the accounting

software for the System Management category [F(2, 162) = 5.332, p < .05], and System

Integration category [F(2, 174) = 4.03, p < .05]. This implies that there is enough evidence
 53

to reject the null hypothesis, that is, respondents who belong to any group under the

business category variable have a different perceptions on their assessed effectiveness of

the accounting software for the different categories. However, there was no statistically

significant difference between business category and respondents assessment on the

assessed effectiveness of the accounting software for the Financial Framework category

[F(2, 176) = 0.061, p ≥ .05], and Resource Utility category [F(2, 180) = .404, p ≥ .05].

This implies that there is not enough evidence to reject the null hypothesis, that is,

respondents who belong to any group under the business category variable have the same

perception on their assessed effectiveness of the accounting software for the different

categories.

“The software program has an upfront cost and might require contracting a

bookkeeper to set up the accounts and coach the business owner on using the program, but

it quickly becomes cost-effective. The owner doesn't need to pay for anything beyond the

software purchase and setup. Most programs work with operating systems for years and

only occasionally require an inexpensive upgrade. (Leonard, 2019).” Therefore, modern

accounting systems provide cost-effectiveness to their users.

3.3 Years in Operation and Perceived Dimensions/Categories

Table 11

Differences in Mean on Years in Operation with the different Dimensions

 54

6 to 11 to
1 to 5 16 to 20 F- P-
10 15 Decision
Categories years years Value Value
years years
M M M M
Financial
4.13 4.31 3.78 4.42 7.919 .000* Reject Ho
Framework
System
4.11 4.41 4.49 4.46 11.755 .000* Reject Ho
Management
System
4.18 4.27 3.71 4.50 50.468 .000* Reject Ho
Integration
Fail to
Resource Utility 4.28 4.29 4.07 4.40 2.731 .050
Reject Ho
*Significant

To determine mean differences in years of operation and the assessed effectiveness

of the accounting software for the different categories, a one-way ANOVA was performed.

Levene’s test suggests that there was a violation on the test of homogeneity for Financial

Framework (p < .05), System Management (p < .05), System Integration (p < .05), and

Resource Utility (p < .05) therefore equal variances between the groups for these categories

are not assumed. The corresponding results were adjusted using WELCH ANOVA.

Table 11 shows that there was a statistically significant difference between years in

operation and respondents assessment on the assessed effectiveness of the accounting

software for the Financial Framework category [F(3, 68) = 7.919, p < .000], System

Management category [F(3, 156) = 11.755, p < .000], and System Integration category

[F(3, 135) = 50.468, p < .000]. This implies that there is enough evidence to reject the null

hypothesis, that is, respondents who belong to any group under years in operation variable

have the different perceptions on their assessed effectiveness of the accounting software

for the different categories. However, there was no statistically significant difference
 55

between years in operation and respondents’ assessment on the assessed effectiveness of

the accounting software for the Resource Utility category [F(3, 77) = 2.731, p ≥ .05]. This

implies that there is not enough evidence to reject the null hypothesis, that is, respondents

who belong to any group under years in operation variable have the same perception on

their assessed effectiveness of the accounting software for the different categories.

With the help of modern technology, there will be fewer mathematical errors since

these programs are designed to provide “accurate and reliable information (Leonard,

2019).” The erroneous amounts might be lessened, and it will surely be more efficient to

use.

3.4 Years of Service and Perceived Dimensions/Categories

Table 12

Differences in Mean on Years of Service with the different Dimensions

6 to 11 to
1 to 5 16 to 20 F- P-
10 15 Decision
Categories years years Value Value
years years
M M M M
Financial
4.20 4.34 4.69 4.11 12.473 .000* Reject Ho
Framework
System
4.29 4.33 4.80 4.18 21.997 .000* Reject Ho
Management
System
4.34 4.17 4.43 3.69 6.609 .000* Reject Ho
Integration

Resource Utility 4.41 4.08 4.69 3.51 25.715 .000* Reject Ho

*Significant
 56

To determine mean differences in years of service and the assessed effectiveness of

the accounting software for the different categories, a one-way ANOVA was performed.

Levene’s test suggests that there was a violation on the test of homogeneity for Financial

Framework (p < .05), System Management (p < .05), System Integration (p < .05), and

Resource Utility (p < .05) therefore equal variances between the groups for these categories

are not assumed. The corresponding results were adjusted using WELCH ANOVA.

Table 12 shows that there was a statistically significant difference between years of

service and respondents assessment on the assessed effectiveness of the accounting

software for the Financial Framework category [F(3, 47) = 12.473, p < .000], System

Management category [F(3, 48) = 21.997, p < .000], System Integration category [F(3,

396) = 6.609, p < .000], and Resource Utility category [F(3, 43) = 25.715, p <.000].. This

implies that there is enough evidence to reject the null hypothesis, that is, respondents who

belong to any group under years of service variable have different perception on their

assessed effectiveness of the accounting software for the different categories.

“A wide variety of accounting software programs are consumer-friendly. Business

owners can shop around to find a program that is easy to install, learn and use. Once the

system is established with bank accounts, debts, and vendors, the business owner only

needs to update information as it comes in (Leonard, 2019).” With the help of modern

technology, there will be fewer mathematical errors since these programs are designed to

provide “accurate and reliable information (Leonard, 2019).” The erroneous amounts

might be lessened, and it will surely be more efficient to use.

 57

Chapter 4

Summary, Conclusion, and Recommendations

This chapter contains the summary of findings and conclusion based on the results

of the study and its corresponding recommendation.

Summary of Findings

The study assessed the Effectiveness of Accounting Software on Micro, Small, and

Medium Businesses located in Quezon City.

The study focused on four different aspects which are Financial Framework, System

Management, System Integration and Data Recovery and Resource Utility.

This study is concentrated on the following areas: the profile of the respondents in

terms of Business Category, which pertains to Manufacturing, Service, Merchandising

Industry. Next is MSME Sector which is divided into three sectors namely Micro, Small

and Medium Enterprises. Next is Years in Operation which ranges from 1 to 5 years, 6 to

10 years, 11 to 15 years, and 16 to 20 years. Lastly, Years of Service in the current firm

also range from 1 to 5 years, 6 to 10 years, 11 to 15 years, and 16 to 20 years.

The method utilized in this study is the nonprobability method. The convenience

sampling technique was utilized because of the availability of the respondents. The survey

was conducted to gather and analyze data. The population consists of 400 respondents from
 58

different companies located in Quezon City, who are willing to be involved in the study.

The respondents are users of accounting software. Survey Questions were adapted from a

study entitled, “The impact of online accounting software as a credit management tool on

small business cash flow” conducted by Olamide Osinowo.

The statistical treatment utilized in analyzing and interpreting the data gathered is

Descriptive Analysis and ANOVA test to determine if there is a significant difference.

Likert Scale was also used in the survey questionnaire.

From the previous analysis and interpretation based on the problem shown in Chapter

1, these findings are drawn and presented:

1. The participant of the study has the following demographic profile: in terms of

Business Category, 56.3% (225) are from service industry while Merchandising

Industry had 28.7% (115) and Manufacturing Industry with 15% (60) with a total

of 100% (400). In terms of the MSME Sector, 42.8% (171) are Medium

Enterprises while Small Enterprises had 30.5% (122) and Micro 26.8% (107) with

a total of 100% (400). In terms of Years in Operation, 38.3% (153) are 1 to 5 years

operating while 6 to 10 years had 29.8% (119), 16 to 20 years had 28% (112) and

11 to 15 had 4% (16) operating with a total of 100% (400). In terms of Years of

Service Industry 68% (272) respondents are employed for 1 to 5 years while 6 to

10 years had 24% (96) and 11 to 15, 16 to 20 years had both 4% (16) with a total

of 100% (400).
 59

2. The assessed level of the effectiveness of accounting software in terms of the given

categories. The survey conducted with the accounting software users indicated that

the companies in Quezon city see that the accounting software is efficient in terms

of Financial Framework, System Management, System Integration and Data

Recovery, and Resource Utility.

3. The effectiveness of accounting software in terms of the following categories.

1. Financial Framework. Overall, the respondents’ assessment implies that

there is a positive attitude in the respondents’ perception towards financial

framework as seen by the total positive responses.

2. System Management. Overall, the respondents’ assessment implies that

there is a positive attitude in the respondents’ perception towards system

management as seen by the total positive responses.

3. System Integration and Data Recovery. Overall, the respondents’

assessment implies that there is a positive attitude in the respondents’

perception towards system integration and data recovery as seen by the total

positive responses.

4. Resource Utility. Overall, the respondents’ assessment implies that there is a

positive attitude in the respondents’ perception towards resource utility as

seen by the total positive responses.

 60

4. There is a significant difference in the respondent's assessment of the effectiveness

of the accounting software in the business operation of the MSME based on the

category when the profile of the respondent is considered.

5. There is a significant relationship between the effectiveness of the accounting

software when MSME Sector and Years or Service is considered, but the factors

Business Category and Years of Operation may affect its significant difference in

some ways.

Conclusion

Based on the findings of this research study, the following are the conclusion made

by the researchers pertinent to the Effectiveness of Accounting software.

The researchers conclude that users of accounting software find it effective in their

day-to-day operation. They have adjusted to the new accounting information systems and

this made the transaction faster and recorded information securely.

The result also shows that the respondent's assessment of the effectiveness of the

accounting software in the business operation of the MSME based on the category is

positive. Therefore, accounting software is effective in MSME businesses even when Years

of Service is considered. On the other hand, factors such as Business Category and Years

of Operation have yielded the majority of positive results. Accounting software might be

effective, but still has room for improvement to suit each business’s needs.
 61

Recommendation

The researcher recommends the following:

1. Accounting software should be emphasized in any kind of business especially it

can provide vital information from the available report which was already in the

system with more ease and reliability, that can be used in analyzing data in

making some critical decision.

2. To future researchers who consider expanding the study by selecting a larger

population and a different location so that the collective contribution of the

studies will help the accountants, auditors, and students regarding the usage of

accounting software.

3. To future researchers who consider conducting a specific study regarding online

versus offline accounting software to determine their differences and advantages

and disadvantages.

4. To future researchers who consider making a comparative study among different

accounting software in a larger area considering a different type of business.

5. To future researchers who consider classifying MSME into more specific

groupings to test the differences of effectiveness of accounting software in

different sectors.
 62

References

A Survey on the Effectiveness of Accounting Software in the Micro, Small And Medium
Businesses. Retrieved from https://docs.google.com/forms/d/e/1FAIpQLSdE6W7
Ks5pRsjmwEMXnWjYdT_RQBMASvomQuGyUOljiPjjskg/viewform

Accounting Information System (AIS). Retrieved from https://corporatefinanceinstitute

.com/resources/knowledge/accounting/accounting-information-system-ais/

Acevedo, L. (2017). Disadvantages of Accounting Software. Retrieved from https://biz

fluent.com/about-5106557-disadvantages-accounting-software.html

Automation. Retrieved from https://www.techopedia.com/definition/32099/automation

Averkamp, H. (n.d.). Accounting Coach. Retrieved from https://www.accountingcoach

.com/terms/A/accounting-department#:~:text=Part%20of%20a%20company's%
20administration,%2C%20financial%20analysis%2C%20and%20more

Belfo, F. & Trigo, A. (2013). Accounting Information Systems: Tradition and Future
Directions. Procedia Technology 9 ( 2013 ) [PP. 536 – 546]. Retrieved from
http://doi: 10.1016/j.protcy.2013.12.060

Cameron, A. (2016). Why Use Accounting Software for Your Small Business. Retrieved
from https://www.patriotsoftware.com/blog/accounting/why-use-accounting-
software/

Economy. Quezon City Government. Retrieved from https://quezoncity.gov.ph/about-

the-city-government/economy/

Financial History: The Evolution of Accounting. Retrieved from https://www.invest

opedia.com/articles/08/accounting-history.asp

Fontinelle, A. 2020. Introduction to Accounting Information Systems (AIS). Corporate

 63

Finance and Accounting. Retrieved from https://www.investopedia.com/articles/

professionaleducation/11/accounting-information-systems.asp

Ghasemi, et. al, 2011. The impact of Information Technology (IT) on modern accounting
Systems. Retrieved from http://doi:10.1016/j.sbspro.2011.11.023

Gordon, S. R. (2018). Technology Advancement Influence in Accounting and

Information System Fields. Retrieved from https://scholarworks.uark.edu/cgi/
viewcontent.cgi?article=1032&context=acctuht

Hayes, A. (2020). Double Entry Definition. Retrieved from https://www.investopedia.

com/terms/d/double-entry.asp

History. Quezon City Government. Retrieved from https://quezoncity.gov.ph/about-the-

city-government/history/

History of Accounting. Retrieved from https://strategiccfo.com/history-of-accounting/

Kento, W. (2020). Accounting Software. Retrieved from https://www.investopedia.com/

terms/a/accounting-software.asp

Leonard, K. (2019). Advantages & Disadvantages of Computerized Accounting.

Retrieved from https://smallbusiness.chron.com/advantages-disadvantages-
computerized-accounting-4911.html

Machiwala, I. (n.d.). History of Trade. Retrieved from https://www.streetdirectory.com

/travel_guide/141653/trading/history_of_trade.html

Osinowo, O. (2018). The Impact of Online Accounting Software as a Credit Management

Tool on Small Business Cash Flow. Retrieved from http://hdl.handle.net/10369
/10060
 64

Pepe, Agnes A. (2011). The Evolution of Technology for the Accounting Profession.
Retrieved from https://www.cpapracticeadvisor.com/home/article/10263076/the-
evolution-of-technology-for-the-accounting-profession

Pribanic, E. (2020). Advantages and Disadvantages of a Traditional Accounting System.

Retrieved from https://www.techfunnel.com/fintech/advantages-and-disadvan
tages-of-a-traditional-accounting-system/

Pulakanam, V. & Suraweera, T. (2010). Implementing Accounting Software In Small

Businesses In New Zealand: An Exploratory Investigation. Retrieved from
Accountancy Business and the Public Interest, Vol. 9, 2010.

Quezon City: The Philippines' Largest City. Philippine Statistics Office. Retrieved from
https://psa.gov.ph/content/quezon-city-philippines-largest-city

Romney, M.B. & Steinbart, P.J. (2018). Accounting Information Systems. Pearson
Education.

Soudani, S.N. (2012). The Usefulness of an Accounting Information System for Effective
Organizational Performance. International Journal of Economics and Finance.
Retrieved from http://dx.doi.org/10.5539/ijef.v4n5p136

2012. The MSME Sector. Senate of the Philippines. Retrieved from http://legacy.
senate.gov.ph/publications/AG%202012-03%20-%20MSME.pdf

2016. MSME Development in the Philippines [P. 2]. Retrieved from https://dict.gov.
ph/wp-content/uploads/2016/07/8.-SMEs-in-the-Philippines-_Empowering-
LGUs-through-ICT-Partnership-with-SUCs.pdf
 65

Appendix A

Survey Questionnaire

THE EFFECTIVENESS OF ACCOUNTING SOFTWARE IN THE MICRO,

SMALL AND MEDIUM BUSINESSES

In this survey, you will be asked a few questions about your business background

and how accounting software helped you. The whole process should not take more than 20

minutes to complete.

Part 1. Profile

Name of the respondent: (optional) ______________________________

Business Category: ☐ manufacturing ☐ service ☐ merchandising

MSME Sector: ☐ micro (not more than Php 3,000,000) ☐ small (Php 3,000,001 –

Php 15,000,000) ☐ medium (Php 15,000,001 – Php 100,000,000)

Years in Operation: ☐ 1yr to 5yrs ☐ 6yrs to 10yrs

☐ 11yrs to 15 years ☐ 16yrs to 20yrs

Years of service in the current firm: ☐ 1yr to 5yrs ☐ 6yrs to 10yrs

☐ 11yrs to 15 years ☐ 16yrs to 20yrs

1. Is your current firm or workplace a taxpayer?

☐ Yes ☐ No

2. Does this firm or workplace use an accounting software?

☐ Yes ☐ No
 66

On a scale of 'Very Inefficient (1)' to 'Very Efficient' (5), please indicate the extent

to which the Accounting Software does the following: (kindly check the

corresponding boxes)

Answer Options: Very Inefficient Moderate Efficient Very

(2)
Inefficie (3) (4) Efficient

nt
(5)

(1)

i) FINANCIAL FRAMEWORK

1. Provides

accurate,

reliable and

up-to-date

financial

information

2. Adheres to

the highest

standards of
 67

statutory

reporting to

the

Companies

House and

the HMRC

3. Processes

financial data

in a reliable

and

understandab

le way

4. Records

invoice for

orders using

standard

billing and

contract

terms
 68

5. Calculates

tax

(including

VAT) and

interest

payments

accurately

ii) SYSTEMS MANAGEMENT

1. Provides

unlimited,

free support

on the use the

application

2. Improves

time

planning, and

procedural

skills
 69

3. Improves

book-keeping

&

accounting,

and payroll

skills

4. Administers

knowledge of

the

profitability

of the

business

5. Reduces the

need for in-

house IT

expertise

iii) SYSTEMS INTEGRATION & DATA RECOVERY

1. Sends

invoices to
 70

customers

quicker and

receive

payments

quicker

2. Enables the

in-built

automated

credit control

feature to

collect

payments

from

customers

within 60

days

3. Simplifies

credit control

by chasing

payments
 71

from

customers

4. Enables

interaction

with other

banking

systems and

clearing

houses when

payments are

made

5. Enables

modifications

with other

software and

systems (e.g.

Payment

processors,

credit
 72

management

add-on)

6. Enables

speedy data

backup with

zero data loss

in the event

of a network

malfunction

7. Provides high

system

uptime as

network

servers are

always

available

whilst

customers’

data is safe
 73

iv) RESOURCE UTILITY

1. Enables

software

accessibility

anywhere &

at any time,

and on a

mobile phone

2. Enables

software

suitability

and

appropriatene

ss to meet

business

requirements

3. Enables real

time

management
 74

of cash flow

and credit

sales

4. Assess the

risk of some

business

operation and

prediction of

future

earnings

5. Assess the

risk of the

safety and

security of

business

financial

information

against

hackers
 75

6. Enables

simultaneous

access and

engagement

with the

Accountant

7. Reduces

reliance on

Traditional

Accountants

To what extent has the... (kindly check the corresponding boxes)

Answer Options Not at Low Moderate High Very High

all extent Extent Extent Extent

1. ...traditional

accounting

information

system

effectively
 76

helped the

firm in

realizing

financial

gains?

2. ..Accounting

Software

effectively

helped the

firm in

realizing

financial

gains?

The following questions are related to your business experience after the use of the

Accounting Software:

1. Would you

recommend

the

Accounting
 77

Software to a

business

colleague?

2. Are you full

of optimism

on the future

outlook for

CAMANAV

A / QC small

businesses

with the use

of the

Accounting

Software?
 78

Appendix B

Letter to Respondents

Greetings in Peace!

We are 3rd year BS in Accountancy students, currently conducting a study entitled

"Effectiveness of Accounting Software in the Micro, Small and Medium Businesses." In

this survey, you will be asked a few questions about your business background and how

accounting software has helped you. The whole process should not take more than 20

minutes to complete. By checking the box bellow, you hereby agree to participate in this

survey.

□ I agree to participate in this survey

Shall there be any concerns regarding the survey questionnaire, feel free to contact Hazel

Joy Chua at hazel.chua@dlsau.edu.ph or +639568834613 or Kyla Joyce Lee at

kyla.lee@dlsau.edu.ph. or +639770196029 Data collected will be used for educational

purposes only.

Thank you!

Regards,

Hazel Joy Chua

Kyla Joyce Lee

 79

Appendix C

Letter of Intent

Business Permit Licensing Office

City of Quezon,

To whom it may concern,

We are 3rd year BS in Accountancy students, currently conducting a study entitled

"Effectiveness of Accounting Software in the Micro, Small And Medium Businesses." As
part of the study, we were required to inquire about the population of MSME sectors for
accuracy. Prior to our survey, we will need the statistics of businesses located in Caloocan
City (South) which are Micro, Small and Medium Enterprises. With this, we would like to
ask your good office to allow us to inquire data regarding the said population.

Shall there be any concerns regarding the survey questionnaire, feel free to contact Hazel
Joy Chua at hazel.chua@dlsau.edu.ph or +639568834613 or Kyla Joyce Lee at
kyla.lee@dlsau.edu.ph. or +639770196029 Data collected will be used for educational
purposes only.

Thank you!

Regards,

Hazel Joy Chua

Kyla Joyce Lee

 80

Appendix D

IP Registry Form

09568834613
09770196029

February 10, 2021

This research studies the effectiveness of accounting software in micro, small and medium enterprises
.
in Quezon City. Businesses which are categorized as small, medium and large enterprises are the target
participants in this study. Employees coming from accounting departments are asked to participate for this
study. This study seeks to determine the efficiency of using accounting software for businesses such as
manufacturing, service, and merchandising. As technology evolves, accounting also takes part in the
.
improvement brought by it. The researchers aim to determine how accounting software helps in the ordinary
course of business.
 81

Appendix E

Instrument Validity Verification Certificate

 82

Appendix F

Research Ethics Review

DE LA SALLE ARANETA UNIVERSITY

Research Ethics Review

CHECKLIST A
Research Ethics Checklist for Investigations Involving Human Participants

This checklist must be completed before gathering data. The same is accomplished after the
research proponent fills out the General Checklist Form.

Answer this checklist ONLY if you answered YES on question 1 of the General Checklist.

Name of Researcher/s : Hazel Joy D. Chua and Kyla Joyce C. Lee

College / Department : [ ] CAST [ ✓ ] CBMA [ ] CED [ ] CVMAS [

] Others

Term / AY enrolled : S.Y. 2020-2021-2

______________________________________________________________________________
Provide a brief description of the data collection procedure to be undertaken in the research.

This research studies the effectiveness of accounting software in micro, small and
medium enterprises in Quezon City. Businesses which are categorized as small, medium and large
enterprises are the target participants in this study. Employees coming from accounting
departments are asked to participate for this study. This study seeks to determine the efficiency
of using accounting software for businesses such as manufacturing, service, and merchandising.
As technology evolves, accounting also takes part in the improvement brought by it. The
researchers aim to determine how accounting software helps in the ordinary course of business.

The following should be attached to the checklist:

• A copy of the informed consent form to be used in the study
• A copy of the instrument/tool that will be administered to the participants
• If applicable, a copy of the letter seeking permission to collect data from participants
who are under the supervision of an agency, institution, department, or office.
• If applicable, a copy of the parental consent form for participants below 18 years old.
_____________________________________________________________________________
 83

The following items refer to important ethical considerations in the conduct of research with
human participants. Provide a check for the appropriate answer to each question.

Source of Data: Please check all that apply

1. New data will be collected from human participants. How will the new data be gathered?
Please check all that apply. After this question, proceed to page 2
Experimental Procedures/Intervention/Treatment
Focus Group
Personal Interviews
Self-administered questionnaire
✓ Researcher-administered questionnaire
✓ Internet survey
Observation
Telephone survey
Other, please specify:

2. Pre-existing data from human participants. i.e., from a dataset. If this item #2 applies,
proceed to page 4

Note: Answer this portion if NEW DATA will be collected

Sampling Details
1. Number of target participants/subjects 50
2. Location where participants will be Quezon City
recruited/obtained
3. Duration or number of days of data collection 90 days
4. Person/s who will perform collection of data Hazel Joy D. Chua
and Kyla Joyce C. Lee
5. Specific location/place of data collection Quezon City
6. The procedure/s to be employed to ensure survey form
participants’ voluntary consent
Data Retention
1. How long will the gathered data with 3 months
participant identifiers be kept after publication?
2. How long will anonymized data be kept after 3 months
publication?
Informed Consent Procedure
1. How will consent be recorded?
[ ]Written consent [ ]Audio-recoded consent [ ✓ ]online/email recorded consent
[ ]Other, please specify ___________________________________________________
2. If informed consent will not be recorded, how Ensuring this is purely for academic
would this not pose a threat to the welfare and purposes only
rights of the participants?
 84

3. If informed consent will not be recorded, why For documentation purposes

is it impractical to have it recorded?

1. Will the research involve students who will be receiving course credits for their
participation?
[ ] YES [ ] NO [ ✓ ] Not Applicable
If YES, please attach a copy of the consent form and a summary of the debriefing process that
will help participants understand how their participation in the research has provided a
relevant learning experience to the crediting course.
2. Does the study involve participants below 18 y/o or those who are unable to give their
informed consent?
[ ] YES [ ✓ ] NO [ ] Not Applicable
If YES, please attache a copy of the parental consent form.
3. Is there a possibility that the research can induce physical and/or psychological harm to
the participants? Will they experience pain or some discomfort as a result from their
participation in the research?
[ ] YES [ ✓ ] NO [ ] Not Applicable
If YES, please attach an acceptable argument that outlines the benefits of doing the research
and how they outweigh the cost of harming the participants.
4. Will the participants be deliberately falsely informed or made unaware that they are being
observed? Will they be misled in a way that they will possibly object to or show unease when
told of the real purpose of the study?
[ ] YES [ ✓ ] NO [ ] Not Applicable
If YES, please attach an acceptable argument that outlines the benefits of doing the research
and how they outweigh the cost of harming the participants.
5. Will the research involve the discussion of, or questions on, sensitive topics (e.g. sexual
activity, substance abuse, or mental health)?
[ ] YES [ ✓ ] NO [ ] Not Applicable
If YES, please make sure that the informed consent form explicitly states that sensitive
questions will be posed and that you will safeguard the anonymity of the participants and
ensure confidentiality. Please attach a copy of your informed consent form and your
instrument.
6. Will the research involve the administration of drugs, or other substances to the
participants?
[ ] YES [ ✓ ] NO [ ] Not Applicable
If YES, please attach an acceptable argument that outlines the benefits of doing the research
and how they outweigh the cost of harming the participants.

Please also attach a description of the procedure that will ensure that the participants will be
brought back to their physical and psychological states prior to their participation in the
research
7. Will biological samples (e.g. blood, saliva, urine) be obtained from the participants?
 85

[ ] YES [ ✓ ] NO [ ] Not Applicable

If YES, will this involve invasive procedures? Please attach a description of these procedures.
8. Will genetic materials be obtained from the biological samples?
[ ] YES [ ✓ ] NO [ ] Not Applicable
If YES, please attach a description of the procedures that will ensure confidentiality. Please
attach the informed consent form.
9. Will financial inducements (other than reasonable expenses, like transportation or meal
allowances) be offered to the participants for their participation in their research?
[ ] YES [ ] NO [ ✓ ] Not Applicable
If YES, the researcher(s) should be mindful of how the inducements can influence the
participants’ responses or behaviors during the research. Indicate the financial inducements
offered to the participants: ____________________
10. Is there a possibility for groups or communities to be harmed by the dissemination of the
research findings?
[ ] YES [ ✓ ] NO [ ] Not Applicable
If YES, please attach a description of procedures to ensure the anonymity and confidentiality
of the research findings.
Note: Answering YES to most of the above items signals an ethical issue that needs to be
addressed. Some actions that will allow adherence to research ethical principles are provided
with each item. The researcher is advised to refer to the University’s Guide to the Responsible
Conduct of Research for the appropriate procedures to ensure adherence to ethical principles in
the conduct of research.

DECLARATION

I certify that I have read and understood the De La Salle Araneta University Code for the
Responsible Conduct of Research and will abide by the ethical principles in this document.
I will submit a final report of the proposed study to the DLSAU-Research Ethics Office. I will
not commence with data collection until I receive an ethics review approval from the
University Research Ethics Review Committee.
Hazel Joy D. Chua
________Kyla Joyce C. Lee__________________ ____February 23, 2021_____
Name and Signature of Researcher/s Date
______________________________________________________________________________

FOR GRADUATE and UNDERGRADUATE DLSAU STUDENTS

I confirm that the student(s) is/are capable of undertaking this research in a safe and ethical
manner.

_______Dr. Porfirio Catolico Jr.________________ February 23, 2021_______

Adviser’s Name and Signature Date
 86

Appendix G

Research Ethics Review APPLICATION FORM

DE LA SALLE ARANETA UNIVERSITY

Research Ethics Review

APPLICATION FORM

Research / Project Title : The Effectiveness of Accounting Software in The Micro, Small
and Medium Businesses

____________________________________________________________________

Section 1. ADMINISTRATIVE INFORMATION

Name of Researcher/s : Chua, Hazel Joy D. and Lee, Kyla Joyce C.

College / Department : [ ] CAST [ ✓ ] CBM [ ] CED [ ] CVMAS [ ]

Others

Research Adviser : Dr. Porfirio Catolico Jr.

Term / AY enrolled : S.Y. 2020-2021-2

Section 2. RESEARCH / PROJECT DESCRIPTION

2.1. Introduction
Background and Purpose of the Study (maximum of 250 words)
This research studies the effectiveness of accounting software in micro, small
and medium enterprises in Quezon City. Businesses which are categorized as small,
medium and large enterprises are the target participants in this study. Employees
coming from accounting departments are asked to participate for this study. This study
seeks to determine the efficiency of using accounting software for businesses such as
manufacturing, service, trading and merchandising. As technology evolves, accounting
also takes part in the improvement brought by it. The researchers aim to determine how
accounting software helps in the ordinary course of business.
2.2. Study Design
 87

The research question or objectives

In order to determine the effectiveness of accounting software, descriptive
research design will be used with quantitative methods. The survey questionnaire was
adapted from a study by Olamide Osinowo entitled “The impact of online accounting
software as a credit management tool on small business cash flow”. It consists of three
parts, the demographic, the evaluation of the effectiveness divided in four subparts
namely, Financial Framework, System Management, System Integration & Data
recovery, and Resource Utility. Lastly, the third part which is an assessment of the
respondents. it will be measured by a five-point Likert scale.
Justification of the study
Technology has brought great changes and those had a positive impact on
business enterprises. One of the beneficial improvements brought by technology is
accounting software. Many researchers globally have studied accounting software and
its impact to businesses. However, there are still insufficient studies in the Philippines
to provide information on its effectiveness in the operations.

Plan for data collection and analysis

The plan for the data collection is to ask for consent to the respondents,
perform survey online through google forms. Next is to produce summary of the
responses using excel then use Statistical Package for the Social Science to analyze the
data and variables to test the significant difference, ANOVA will be used.

2.3. Detailed description of the methodology

Design, Procedure for Gathering Data, Research Locale, Respondents/Participants

In order to determine the effectiveness of accounting software in micro, small

and medium enterprises, a descriptive research will be used. The Research Locale
would be Quezon City, Philippines. The respondents would be the 50 accountants or
users of accounting software from the MSME’s located in Quezon City.

Required Attachment for this Application

Attachment Checklist (check if the following documents are attached)
✓ Research Proposal (statement of the problem, definition of terms, instruments

✓ Informed Consent Form for adult participants

Parental or Guardian Consent Form for participants below 18 or considered not
competent to provide consent
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✓ Accomplished General Research Ethics Checklist

Accomplished specific checklist (only those applicable to the proposal)

Declaration
I certify that I understood the Code for the Responsible Conduct of Research and will abide by
the research ethical principles. I will submit a final report of the proposed study to the DLASU
Research Ethics Office. I will not commence with data collection until I receive an ethics review
approval from the University Research Ethics Review Committee.
Hazel Joy D. Chua
__ Kyla Joyce C. Lee______________________ _____February 23, 2021_____
Name and signature of Principal Investigator Date

Mentor’s Approval
(For graduate and undergraduate DLSAU students only)

I confirm that the student(s) is/are capable of undertaking this research is a safe and ethical
manner.

______Dr. Porfirio Catolico Jr._______ _________________ __February 23, 2021___

Adviser’s Name & Signature Signature Date
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Appendix H

General Research Ethics Checklist

DE LA SALLE ARANETA UNIVERSITY

GENERAL RESEARCH ETHICS CHECKLIST

This checklist is to ensure that the research conducted by the faculty members and students of
De La Salle Araneta University is carried out according to the guiding principles outlined in the
Code of Research Ethics of the University. The investigator is advised to refer to the De La Salle
Araneta University Code of Research Ethics and Guide to Responsible Conduct of Research before
completing this checklist. Statements pertinent to ethical issues in research should be addressed
below. The checklist will help the researcher/s and advisers/readers/evaluators determine
whether procedures should be undertaken during the course of the research to maintain ethical
standards. The University’s Guide to the Responsible Conduct of Research provides details on
these appropriate procedures.

GENERAL INFORMATION:

Name of Researcher/s : Chua, Hazel Joy D. and Lee, Kyla Joyce C.

College / Department : [ ] CAST [ ✓ ] CBM [ ] CED [ ] CVMAS [ ]

Others

Term / AY enrolled : S.Y. 2020-2021-2

Name of Adviser : Dr. Porfirio Catolico Jr.

College / Department : [ ] CAST [ ✓ ] CBM [ ] CED [ ] CVMAS [ ]

Others
____________________________________________________________________________
Note: This checklist must be completed AFTER the De La Salle Araneta University Code of
Ethics has been read and BEFORE gathering data.
QUESTIONS YES NO
1. Does your research involve human participants (this includes new data
gathered or using pre-existing data)? If your answer is yes, please answer
Checklist A (Human Participants).

Please specify if the kind of research you will be conducting falls under any
of the following Human Participants sub-categories:
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1.A. Will you be conducting Action Research in an existing business,

company, or school? If your answer is yes, please answer Checklist F (Action ✓
Research).
1.B. Does your research involve online communities (this includes
culling data from social media platforms, online forums and blogs)? If your ✓
answer is yes, please answer Checklist G (Internet Research
1.C. Does your research involve human participants who are situated
in a community and may necessitate permission to acquire access to them? If your ✓
answer is yes, please answer Checklist H (Community Research).
2. Will your research make use of documents which are not in the public domain
and, thus, require permission for use from the custodian of such documents?
✓
If YES, please provide certification that permission from the custodian of
the data was sought and granted
3. Will your research make use of secondary data (e.g., surveys, inventories,
plans, official documents, etc.) from an institution, organization, or agency, which
are not in the public domain and, thus, require permission for use from the
custodian of such documents? ✓

If YES, please provide certification that permission to use the data was
sought from the institution, organization, or agency and approval was granted.
4. Does your research involve animals (non-human subjects)? If your answer is
✓
yes, please answer Checklist B (Animal Subjects).
5. Does your research involve Wildlife? If your answer is yes, please answer
✓
Checklist C (Wildlife).
QUESTIONS YES NO
6. Does your research involve microorganisms that are infectious, disease causing
or harmful to health? If your answer is yes, please answer Checklist D (Infectious ✓
Agents).
7. Does your research involve toxic/chemicals/ substances/materials? If your
✓
answer is yes, please answer Checklist E (Toxic Agents).

Research with Ethical Issues to address:

If you have a YES answer to any of the above categories, you will be required to complete a
detailed checklist for that particular category. A YES answer does not mean the disapproval of
your research proposal. By providing you with a more detailed checklist, it is ensured that the
ethical concerns are identified so these can be addressed in adherence to the University Code of
Ethics.

Declaration of Conflict of Interest

[ ✓ ] I do not have a conflict of interest in any form (personal, financial, proprietary,
or professional)
with the sponsor/grant-giving organization, the study, the co-
investigators/personnel, or the site.
 91

[ ] I do have a conflict of interest, specifically:

[ ] I have a personal/family or professional interest in the results of the
study (family members who are co-proponents or personnel in the study,
membership in relevant professional associations/organizations). Please
describe the personal/family or professional interest:
_________________________________________________________________
_________________________________________________________________

[ ] I have propriety interest vested in this proposal (with the intent to apply
for a patent, trademark, copyright, or license) Please describe propriety interest:
_________________________________________________________________
_________________________________________________________________

[ ] I have significant financial interest vested in this proposal (remuneration

that exceeds P250,000.00 each year or equity interest in the form of stock, stock
options or other ownership interests). Please describe financial interest:
_________________________________________________________________
_________________________________________________________________

Note: Researchers are requested to provide a copy of their Curriculum Vitae, or any document
that provides information on the researchers’ history of research activities or professional
experience (including past publications, presentations, other project involvements, volunteer
work, etc.).

DECLARATION
I certify that I have read and understood the De La Salle Araneta University Code for the
Responsible Conduct of Research and will abide by the ethical principles in this document. I will
submit a final report of the proposed study to the DLSAU-Research Ethics Office. I will not
commence with data collection until I receive an ethics review approval from the University
Research Ethics Review Committee.
Hazel Joy D. Chua
Kyla Joyce C. Lee February 23, 2021
.
Name and Signature of Researcher/s Date

FOR GRADUATE and UNDERGRADUATE DLSAU STUDENTS

I confirm that the student(s) is/are capable of undertaking this research in a safe and ethical
manner.

Dr. Porfirio Catolico Jr. February 23, 2021

.
Adviser’s Name and Signature Date
 92

Appendix I

Research Ethics Clearance Form

RESEARCH ETHICS CLEARANCE

FORM1
Names of Student Researcher(s):
Hazel Joy D. Chua and Kyla Joyce C. Lee

College: Business, Management and Accountancy

Department: Accountancy
Course: Bachelor of Science in Accountancy
Expected Duration of the Project: from: March 2021 to: June 2021
Ethical considerations

(The Ethics Checklists may be used as guides in determining areas for ethical
concern/consideration)

To the best of my knowledge, the ethical issues listed above have been addressed in the
research.

Dr. Porifirio Catolico Jr.

Name and Signature of
Adviser/Mentor: Date:
February 23, 2021
Noted by:

Dr. Glen De Leon, CPA.

Name and Signature of the Department
Chairperson:
Date: June 21, 2021

1 The same form can be used for the reports of completed projects. The appropriate heading need only be used.
 93

Appendix J

Turnitin Results
 94

Appendix K

Certificate of Statistical Treatment

 95

Curriculum Vitae

HAZEL JOY D. CHUA

Address: 11 Ortega St. Tonsuya Malabon City

Contact No. +639568834613

Email: hazel.chua@dlsau.edu.ph

EDUCATIONAL BACKGROUND

2018-Present DE LA SALLE ARANETA UNIVERSITY

Victoneta Ave., Malabon City

Bachelor of Science in Accountancy

2016-2018 UNIVERSITY OF THE EAST- CALOOCAN

Caloocan City

Senior High School Education

2012-2016 UNIVERSITY OF THE EAST- CALOOCAN

Caloocan City

Junior High School Education

 96

2006-2012 PHILIPPINE MALABON CULTURAL INSTITUTE

Malabon City

Primary Education

AFFILIATIONS

2020-Present UNIVERSITY STUDENT COUNCIL

De La Salle Araneta University

2020-Present Alyansang Lasalyano Aktibo at Makabago

De La Salle Araneta University

2018-Present DLSAU Animo Serenata Chorale

De La Salle Araneta University

2018-Present De La Salle Araneta University – Junior Philippine Institute of

Accountants

De La Salle Araneta University

 97

Curriculum Vitae

NAME: KYLA JOYCE C. LEE

Address: 409 Candido St. Nadurata 9th Ave. West, Caloocan City

Contact No.: +639770196029

Email Address: kyla.lee@dlsau.edu.ph

EDUCATIONAL BACKGROUND

2018-Present DE LA SALLE ARANETA UNIVERSITY

Victoneta Ave., Malabon City

Bachelor of Science in Accountancy

2017-2018 DE LA SALLE ARANETA UNIVERSITY

Victoneta Ave., Malabon City

Senior High School Education

2013-2017 NORTHERN RIZAL YORKLIN SCHOOL

5th and 6th Ave., Caloocan City

Junior High School Education

 98

2004-2013 NORTHERN RIZAL YORKLIN SCHOOL

5th and 6th Ave., Caloocan City

Primary Education

AFFILIATIONS

2020-Present UNIVERSITY STUDENT COUNCIL

De La Salle Araneta University

2018-Present DLSAU Animo Serenata Chorale

De La Salle Araneta University

2018-Present De La Salle Araneta University – Junior Philippine Institute of

Accountants

De La Salle Araneta University