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Accrual Accounting Systems

Write a 10 page essay on Accrual Accounting Systems. Project subject area and Angle description – Small to medium enterprises are major components of developed economies as they constitute 99% of the total number of business operations in these countries. Given the space that SMEs occupying within developed economies and their importance therein studying the methods by which these enterprises can utilize IT tools to maximize organizational efficiency and effectiveness, and enhance organizational performance, is extremely crucial. In direct relation to the aforementioned, accounting and organizational management scholars have determined that the right accounting software package can substantially contribute to organizational performance and the maximization of efficiency and effectiveness (Hirst and Hopkins, 1998). Choosing the right accounting software is perceived to be one of the most challenging tasks that an entrepreneur faces in his professional career (Johnston 2003). This is especially true for small scale business operations where owners often lack the resources and expertise beyond their core activities to the point that other functions are overlooked. However, the selection process is problematic, as is the subsequent implementation process. Problem to be Solved and Worth – Although, in this highly developed economy, there is hardly an SME which does not manage its accounts through the use of accounting software, few understand the imperatives of selecting the right package or the benefits of doing so.

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