Analysis of E-Accounting System's Impact on Financial Performance

This report examines the influence of e-accounting systems on financial performance, focusing on businesses listed in the Dubai Financial Market (DFM) and Abu Dhabi Securities Exchange (ADX), under the federal government of the United Arab Emirates (UAE). The study utilizes data collected from 128 companies through questionnaires with Likert-type scales. The research investigates the impact of e-accounting on internal control systems and operational risk, aiming to improve financial performance. The findings suggest that e-accounting significantly enhances efficiency, profitability, and liquidity. The report highlights the importance of e-accounting in modern business operations and its positive effects on financial management and decision-making processes. The research also emphasizes the importance of a robust internal control system to mitigate risks and ensure the effective use of e-accounting systems.

Running Head: Effect of e-accounting system on financial performance
Effect of e-accounting system on financial performance
Name of the Student
Name of the University
Author Note

1Effect of e-accounting system on financial performance
Nowadays a technology is playing an important role in the business world. According
to Soudani, there are plenty of accounting software which have been developed for the
purpose of performing the accounting work with efficiency and effectively. Therefore, the
business organizations rely largely on the computers and it is important for the organizations
to incorporate the solutions of information technology for its smooth running of the
operations. The performance as well as the profitability of the business organizations of both
the industries, manufacturing and service depend largely on the systems of information
technology. However, it is difficult to detect the flaws in the accounting software until there
is the option of an effective as well as efficient internal control system.
A new comprehensive financial management and the accounting system has been
introduced by the Ministry of Finance and Industry as one of the key priorities to be used in
the USE e-government strategic project. The adoption of the of the e-accounting system will
help the accounting system to gain recognition in the international levels and at the same time
it will aim to strengthen the management reporting while improving the process of planning
and control with proper decision making ability of crucial financial data. The research has
been conducted undertaking only one type of industry and the reason for choosing the same is
to limit the ability of generalising the results. Thus, for the purpose of conducting this
research the data have been collected with the help of questionnaires from 128 companies
which are listed in the Dubai Financial Market (DFM) and Abu Dhabi Securities Exchange
(ADX) and led by the federal government of the United Arab Emirates (UAE). The
questionnaires which have been sent to the respondents have the questions in the format of
five point Likert-types scales for the purpose of measuring the data with the choice of
strongly agree to strongly disagree. Furthermore, the questionnaire is divided into two
sections in which the first section talks about the demographics of the targeted audiences,
whereas the second section is composed of the main questions and there are total 19

2Effect of e-accounting system on financial performance
questions in the questionnaire. On the other hand, the data which have been collected consists
of both primary data along with the secondary data with the help of questionnaires and
journals, books respectively. The hypothesis with which the research is concerned includes
the increase of the financial performance with the help of E-accounting system. The system
of e-accounting helps in the improvement of the internal control system. The improvement in
the internal control system will help in the reduction of the operational risk and lastly it talks
about the significant impact of the internal control system on the financial performance.
Therefore, for the purpose of testing the hypothesis of the conducted research, an analysis of
multiple regression has been applied for the purpose of the investigation about the
implementation of the electronic accounting system on the financial performance of business
entities.
Thus it can be concluded from the above discussion that a study has been carried out
for finding out the impact of implementation and usage of electronic accounting system on
the financial performance of the business organizations which in a way affects the internal
control system of the business organizations. The study shows that the electronic accounting
has a significant impact on the efficiency, profitability and liquidity of the organization.

3Effect of e-accounting system on financial performance
References
Soudani, S.N., 2013. The impact of implementation of e-accounting system on financial
performance with effects of internal control systems. Research Journal of Finance and
Accounting, 4(11), pp.17-28.