The impact of accounting information system on the performance of small and medium sized enterprises (smes); A case study of selected smes in kampala

The study focused on the impact of accounting information system on the performance of small and medium sized enterprise. The objectives of the study were; to examine whether SMEs keep proper books of accounts, to examine the quality of financial statements produced by SMEs and to find out the relationship between accounting information and performance of SMEs. The study employed descriptive, cross sectional and associational research designs. The study was carried out in Kampala Central on the management and accounting departments in small and medium businesses in Kampala Centra. Both primary and secondary data was collected from existing journals and management reports. The findings revealed that accounting information is vital for small and medium sized enterprises as it enables to improve decision making. It also reveals that computerized information is at a low level in SMEs. It is revealed that there is a positive relationship between accounting information and small and medium sized enterprises and therefore managers should consider the use of accounting reports to manage their enterprises.Finally, the study recommends that SMEs need a well-designed and operating accounting information system to enable them manage its most valuable resource which is information and moving forward, based on the AIS chosen emphasis should be put on system threats in a firm. Where accountants and business owners must put in place security measures like anti viruses, training and creating a culture of security so as to avoid attacks on the AIS which leads to loss of data and valuable accounting information.