Impact of Computerized Accounting Systems on the Financial Performance of Small and Medium Enterprises (Smes) in Cross River State

The study examined the impact of Computerized Accounting Systems (CAS) on the financial performance of Small and Medium Enterprises (SMEs) in Cross River State. It was guided by three specific objectives: to assess the impact of Automatic Transaction Recording (ATR), to evaluate the effect of Automatic Financial Report Generation (AFRG), and to determine the influence of Automatic Income and Expense Tracking (AIET) on the financial performance of SMEs in the state. A survey research design was adopted for the study. The population comprised 4,289 registered SMEs operating in Cross River State, from which a sample size of 351 respondents was drawn. Primary data were collected using a structured questionnaire. The internal consistency of the instrument was tested using Cronbach’s alpha, yielding reliability coefficients of 0.78, 0.81, and 0.84 for the respective sections of the questionnaire. Data were analyzed descriptively using frequency tables, percentages, means, and standard deviations, while linear regression analysis was employed to test the hypotheses at the 0.05 level of significance. The findings revealed that automatic transaction recording has a positive and significant effect on the financial performance of SMEs in Cross River State. Similarly, automatic financial report generation also significantly and positively influences financial performance. Furthermore, automatic income and expense tracking was found to have a significant positive impact on SMEs' financial performance in the state. Based on these findings, it was recommended that government agencies and business development organizations promote the use of automatic transaction recording and income and expense tracking software among SMEs. The implication of the study is that SMEs should adopt automated financial systems to enhance accuracy, support informed decision-making, and boost profitability. Received: 24 April 2025 / Accepted: 27 June 2025 / Published: 15 July 2025