Determinants of the use of accounting software among small and medium enterprises in Morogoro Municipality, Tanzania

This study examined the determinants of the use of accounting software among small and medium enterprises (SMEs) in Morogoro Municipality, Tanzania. Despite the growing imperative for digital financial management, the use of accounting software remains limited. Grounded in the Technology Acceptance Model (TAM) and positivism research philosophy, this study assessed the influence of management support, perceived ease of use, and competitive pressure on the use of accounting software among SMEs. A cross-sectional research design was employed, utilizing quantitative techniques. Data for this study were collected through a survey method employing a structured questionnaire administered to a sample of 135 SMEs, selected using stratified random sampling to ensure representativeness across key business sectors. The collected data were subsequently analysed through binary logistic regression in Stata/MP version 17.0. The results show that several variables had statistically significant influence on the use of accounting software. Within management support, training provision (p < 0.01), managerial resources allocation (p < 0.01), and active managerial involvement (p < 0.01) significantly influenced the use of accounting software. Under perceived ease of use, significant factors included ease of learning (p < 0.01), interface clarity (p < 0.01), and user-friendliness (p < 0.05). From the domain of competitive pressure, both competitor adoption (p < 0.05) and external demands (p < 0.01) were statistically significant. These findings confirm that the decision to use accounting software is not merely technical but is shaped by managerial behavior, system design, and environmental dynamics. This study concludes that, effective use of accounting software depends on deliberate leadership, system simplicity, and external incentives. It recommends prioritizing managerial training, promoting intuitive software design, and leveraging peer and institutional support to enhance the financial digital transformation of SMEs. This study contributes to the literature by providing empirical evidence on the determinants of the use of accounting software in the context of SMEs in Morogoro Municipality, a setting that has received limited attention in prior research. From a practical perspective, the findings offer actionable insights for SME owners and policymakers to strengthen digital financial management.