IMPACT OF THE ADOPTION OF DIGITALISED ACCOUNTING INFORMATIONON COST REDUCTION OF MSMEs IN NIGERIA

Accounting information system had been extensively utilized by numerous companies to integrate and automate their business processes, increasing productivity and competitive advantages. This paper examined the impact of the adoption of digitalized accounting information on cost reduction of MSMEs in Nigeria. The research design employed for this study was survey research design. The primary data was collected from respondents through structured questionnaire instrument. Both descriptive and regression analysis were employed to analyze the data. The findings revealed that digitalization of accounting information proxied by digitalized accounting software (Microsoft Excel, Quick-book and Zoho-books) have positive and significant impact on Cost Reduction. It is therefore, concluded that digitalization of accounting information have come to stay to solve accounting problems and improve performance of businesses. It was recommended that MSMEs should adopt automated and cost-effective digital accounting tools to streamline processes such as bookkeeping, payroll, and expense tracking. Also there is a need to create awareness about the availability of accounting software for micro, small, and medium business owners, enlighten them about the benefits of using and to train the workers on how to use accounting software effectively. Furthermore, software developers should consider creating cost-effective, localized software to reduce the dependency on foreign solutions with high subscription fees, especially for Nigerian small businesses.