Adoption of Computerized Accounting Systems (CAS) in SMEs: A Study of Manufacturing Firms in Sri Lanka

This paper intended to investigate and explore the practices in adopting CAS in SMEs specially focusing on practices of manufacturing firms in Sri Lanka. The study mainly focuses on the impact of accounting expertise, technological change, and cost, in relation to the adoption decision regarding adopting CAS. The study design as quantitative research using survey method in data collection connecting to manufacturing oriented SME’s in Sri Lanka using the snowballing sampling method. The study identified that advanced technological capabilities and a higher level of accounting expertise significantly enhance the adoption of Computerized Accounting Systems (CAS) among SMEs in the manufacturing sector in Sri Lanka. Conversely, the high cost of implementation was found to be a major impediment to the adoption process. Additionally, the findings highlighted that adequate training and ongoing support are critical prerequisites for achieving effective CAS integration within SMEs. These insights suggest that targeted interventions, such as subsidized training initiatives, could play a pivotal role in promoting CAS adoption, thereby enhancing decision-making efficiency within these firms. The study further emphasizes the need for future research to explore the impact of varying degrees of governmental support and policy adaptations on fostering widespread CAS implementation across SMEs. This could provide valuable insights into strategies for overcoming existing barriers and leveraging technology for improved organizational outcomes.