INFLUENCE OF ELECTRONIC ACCOUNTING AND INFORMATION SYSTEMS ON FINANCIAL PERFORMANCE OF FIRMS IN ANAMBRA STATE

Abstract

This paper discussed the influence of electronic accounting and information systems on the financial performance of firms in Anambra State. In the current global business environment, electronic accounting has become essential for effective financial management and reporting. The relevance of electronic accounting in enhancing financial performance cannot be overemphasized, as it involves the use of computers and software in acquiring, processing, and reporting financial information. The paper highlighted the concept of electronic accounting, accounting information systems, financial performance, types and tools of electronic accounting, benefits of electronic accounting to firms, and problems affecting its extensive utilization in Anambra State. The paper showcased electronic accounting to involve the use of technologies such as accounting software, cloud-based solutions, automated payroll systems, digital collaboration, video conferencing, and web-based technology. Also, electronic accounting tools suitable for firms include QuickBooks, Sage, SAP, Microsoft Dynamics, Peachtree, Xero, and other accounting software packages. The paper identified that electronic accounting enhances financial performance through improved accuracy, timeliness, reliability, cost reduction, operational efficiency, and better decision-making. However, challenges such as inadequate power supply, poor internet connectivity, high cost of software, lack of trained personnel, and resistance to change hinder its widespread adoption. Conclusion was drawn. The paper recommended that government should improve power supply and internet infrastructure to support e-accounting adoption, firms should invest in modern accounting technologies, and there should be adequate training for accounting personnel on the use of electronic accounting systems.