IMPACT OF ACCOUNTING SOFTWARE PACKAGES ON EFFECTIVE OPERATION OF SMALL AND MEDIUM-SCALE ENTERPRISES IN EKITI STATE, NIGERIA

This study examined the impact of accounting software packages on the effective operation of SMEs in Ekiti State, Nigeria. Specifically, it investigated the level of software adoption, types of packages used, perceived benefits, and challenges faced by SMEs. A descriptive survey design was employed, and data were collected from 150 respondents, including SME owners, managers, and accountants, using a validated and reliable structured questionnaire. Data were analyzed using descriptive and inferential statistics with the help of SPSS software. The results showed that Sage (51%) and QuickBooks (25%) were the most commonly used accounting software among SMEs in Ekiti State, indicating a preference for affordable and easy-to-use tools. Respondents overwhelmingly agreed that accounting software improved financial accuracy (80%), time management (80%), and financial reporting (68%), with weighted mean scores ranging from 3.83 to 4.78. Fewer respondents linked software use to tax compliance (57%) or general business impact (53%), pointing to gaps in full utilization of software features. Major challenges identified included high costs (59%), lack of technical expertise (76%), and maintenance issues (69%), while data security concerns (56%) also emerged as an increasing concern. Regression analysis showed a positive and significant relationship between accounting software use and SME performance (p < 0.05), confirming that adoption enhances operational efficiency, decision-making, and profitability. The study concludes that accounting software acts as both an operational and strategic asset that improves financial transparency and performance among SMEs in Ekiti State. It recommends that government agencies, software developers, and financial institutions work together to promote affordable software options, provide ongoing technical training, and support cybersecurity awareness programs. By integrating digital accounting solutions, SMEs can achieve improved accuracy, compliance, and competitiveness in Nigeria’s evolving business landscape.