Accounting Information Systems Usage and Financial Performance of the Hospitality Sector in Uganda: A Review Paper of the Hotels Industry in Fort Portal City

This study examines how Accounting Information Systems (AISs) Usage accounts for financial performance of the hospitality sector in Uganda and adopted a systematic review method of the hotel sector with focus on Fort Portal City. To assess financial performance of hotels in Fort Portal City, literature and published reports about financial performance of the sector were reviewed for a period of 7 years from 2017 – 20224. This period provided a trend in performance of the sector in the city. The study included studies focusing on the overall financial performance of the hotels sector on one hand as well as those that have had detailed focus on either adoption or use of accounting information systems to manage business information with intent of informing decisions. Data were sourced from Google Scholar and Science Direct databases for the period under review. The collected data were synthesized and findings summarized in a thematic manner to aid discussions. Results indicate that accounting information systems usage positively and significantly predict financial performance of Hotels through aiding timely capturing and processing of information which informs decisions that are important to enhance profitability, liquidity and return on assets. Further still, AISs usage results into: higher transparency, better risk management, and stronger financial controls translating into better investment decisions and portfolio allocations. Based on the findings, researchers conclude that AISs usage positively and significantly predict financial performance of firms. The study thus recommends that firms/ hotels should consider investing in more advanced and efficient systems to improve their financial performance.