Chapter 5

Findings, Conclusions, and Recommendations

All things considered, this chapter will evidently show all

the findings, conclusions, and recommendations for all the

problems identified in this research. Findings will focus on the

summarization of the statistical figures of the results extracted

in the survey. Conclusions will briefly discuss statements

concerning to the main reasons relating to the findings dig out.

It will show if this results have a significant impact and

relation in solving the related problems in this study. For the

recommendation, it will focus on improving the performance of the

Small and Medium-Sized Enterprises by targeting the one with the

lowest weighted mean.

Problem 1A: What is the impact of implementation of Accounting

Information Systems to business growth and productivity of Small

and Medium-Sized Enterprises in Naga City in terms of reduction

of employee, technical error and processing time?

Findings

1. The result shown that the implementation of Accounting

Information System has an impact in terms of employee

reduction. The highest percentage change shown in the

results is the increased of Accounting Staff with an average

of 107%, while the lowest percentage change is the Budget

Officer which has an average of 38%. Therefore, Small and

 Medium-Sized Enterprises need more Accounting Staff under

Accounting Information System.

2. As to technical errors, the result shown that there is a

highest decreased is in the erroneous account used of 3.73

with an equivalent average of 66% after the implementation

of Accounting Information System, while the lowest

percentage change is the omission of transactions with a

decrease of 2.97 having an equivalent average of 54%.

Therefore, the impact of Accounting Information System in

terms of technical errors is more on decrease in the

erroneous account used by Small and Medium-Sized

Enterprises.

3. In terms of processing time, majority of Small and Medium-

Sized Enterprises records transaction per day, both for

Manual Accounting System and for Accounting Information

System. The results shown that Small and Medium-Sized

Enterprises have the highest decreased in processing time of

67% both in transactions relating to sales and collection of

receivables. Meanwhile, the results shown that the lowest

decreased in processing time is under payment of expenses

having an average of 1%. Therefore, the implementation of

Accounting Information System aids more in terms of

processing sales and collection of receivables.

Conclusion
 1. Majority of the Small and Medium-Sized Enterprises hires

additional employees, especially accounting staffs who plays

the vital role in accounting the transaction of the

Enterprise after implementing Accounting Information System,

for the reason that the company has the capability of

holding more transactions.

2. The researcher concluded that Small and Medium-Sized

Enterprises who implements Accounting Information System

diminishes the errors that they come across in processing

transactions, especially in terms erroneous account used.

Since it was programmed, they can easily detect incorrect

data that are being entered from the system. Furthermore,

they can easily identify if there are data or information

which are being omitted with the help of a duplicate copy of

pre-numbered official receipts, sales invoice and purchase

order receipts.

3. Accounting Information Systems plays a vital role in every

Small and Medium-Sized Enterprises. The researcher concluded

that it provides a positive effect since they can be more

productive compared when they are using Manual Accounting

System. It primarily aids the Enterprise in them in

processing transactions, such as sales and collection of

receivables. They are more capable of producing desired

results without wasting materials, time and energy.

Recommendation
 1. As to number of employee, the researchers recommend that

they must segregate the duties when it comes to recording

various transactions. They must evaluate the capability of

each employee so that they can identify whether or not

she/he can accept various or complex transaction, therefore

there is no need for them to hire more employee since it is

costly. Moreover, they must hire only those who are needed

by the enterprise.

2. In terms of technical errors, the researcher recommends that

Small and Medium-Sized Enterprises must only use one method

of accounting and recording transactions, which is by using

Accounting Information System in all areas of their

operations, because based on some respondents they

simultaneously use manual and automated and it might result

to disarrangement of data and information and it would be

hard for them to trace incorrect transaction.

Problem 1B: What is the impact of implementation of Accounting

Information Systems to business growth and productivity of Small

and Medium-Sized Enterprises in Naga City in growth in terms of

expansion and employee competency?

Findings

1. Based on the foregoing data, implementation of Accounting

Information System has no substantial relationship in the

business’ market since as per results of the survey, there

 is a minimal increase in the branch and market share of the

enterprises.

2. Based on the result, it was found out that Small and Medium-

Sized Enterprises who have increased the frequency of

sending employees to seminars by 141% after the

implementation of Accounting Information System. Meanwhile,

there is a decreased in the promotion time of the employees

by 10%. Therefore, Small and Medium-Sized owners focus more

on enhancing its employee competency after the

implementation of Accounting Information System.

Conclusion

1. The researchers concluded that expansion is one of the major

result of implementing Accounting Information System.

Herewith, Small and Medium-Sized Enterprises’ market share

grow as their business expands.

2. The result shown that employees must possess the basic

skills and knowledge in using Accounting Information System

for them to be able to perform task productively.

Furthermore, the researcher also concluded based on the

foregoing data that owners Small and Medium-Sized

Enterprises engaged more in sending their employees in a

work related seminars that would probably help their

employees in enhancing their knowledge in using the system

especially those who handles majority of the entity’s

 transactions. This seminar and trainings are of great help

for them to cope up with the changing needs of the society.

Recommendation

1. In terms of business expansion, Small and Medium-Sized

Enterprises must assure to choose the appropriate place with

appropriate target market for them to continuously increase

their market shares.

2. In terms of employee competency, the researcher recommends

that Small and Medium-Sized Enterprises must continuously

require their employees to attend work related seminars that

can help them in developing their skills and knowledge about

the system such as the accountants. This will help them

achieve a more reliable results regarding their duties.

Another reason is that, it can help them do their duties in

a more efficient and effective way especially to those

employees who handles the major transaction of the

enterprise.

Problem 1C. What is the impact of Implementation of Accounting

Information System to business growth and productivity of Small

and Medium Sized Enterprises in Naga City in terms of operational

cost reduction?

Findings

1. Base on the results tallied from the survey conducted, it

was found out that there is an impact on the operational

 cost concerning to the implementation of the Accounting

Information System. The highest percentage change shown in

the results is the increase in the salaries expense and as

the lowest percentage change is the decrease in the supplies

expense. In terms of utilities expense it was found out that

there is an increase of 1, 611.11 equivalent to 22% increase

in the average cost incurred and in terms of the supplies

expense results showed that there is a reduction of cost

amounting to 1,777.98 equivalent to a negative percentage of

35%. Therefore, the reduction of cost relating to its

operations relates mainly to the supplies expense incurred.

Conclusion

1. The implementation of Accounting Information System applied

by Small and Medium-Sized Enterprises has a direct effect as

to the operational cost relating to salaries of the

employees and in the utilities expense of the entity. As

they implement the use of Accounting Information System,

there is a possibility that employees’ salary will increase

because the entity can hold more transactions and as a

result they need to hire additional employees, especially if

the entity’s business is expanded. On the other hand, the

only reduction relating to the entities operational cost is

the supplies expense, there is no need for them to purchase

additional supplies used in recording transaction similar to

what they used to do in Manual Accounting System.

Recommendation

1. Base on the findings it was shown that there is a high value

relating to the increase in the salaries expense. Some

entities in the first glance might say it has a negative

effect in the business but looking in a deep view of it the

increase in the cost has also a corresponding increase in

the revenue of the business. To recommend, the business

should not consider this increase in cost as a burden for

the reason that this increase in the cost is a normal

response in the growth of the business, since the business

is holding an increase number of business transactions they

also need to employ an increase number of employees to

perform the business activities. In connection with this an

increase in the number of business transactions will also

result in an increase in the profitability rate. The cost of

additional employees will be offset by the corresponding

additional income that will be carried because of the

increase of the transactions the business is involving.

Problem 2: What are the challenges in using Accounting

Information System?

Findings

1. There are three major classification of challenges faced by

Accounting Information System users namely; cost related

challenges, information technology related challenges and

human resource related challenges. Among these three major

 challenges and the most faced challenges is the cost related

challenges which is strongly agreed by the respondents

having the highest mean of 4.25. And the lowest result, was

the challenges relating to information technology having the

lowest of mean 3.51.

2. Under the cost related challenges, the main factor that

affects the Accounting Information System user to be more

challenging is the high investment cost requirement having

the highest mean of 4.33. And for the lowest mean of 4.17

for the high system installation and maintenance cost.

3. For the human resource related challenges, factor relating

to employees that must learn new technological skills is the

main contributor to these challenges having the mean of

4.43. and the possibility of unemployment especially low

skilled works resulted as the least faced challenge relating

to human resource having the lowest mean of 3.37.

4. Another challenge relating to the implementation of

Accounting Information System is the Information Technology

related challenges, under this it was found out that the

main indicator contributing to the challenge is the

resistant to technological change having the highest mean of

3.87. and for the least faced challenge relating to

Information Technology disagreed by the respondents is the

hackers may breach the system to steal information having

the lowest mean of 2.60.

Conclusion
 1. Challenges are normal for every business. Small and Medium-

Sized Enterprises also face different challenges such as

cost related challenges, information technology related

challenges and human resource related challenges.

2. Based on the findings above, the researchers end up with a

conclusion that implementation of Accounting Information

System may be costly, but this will be used in the long run

and in effect, the cost invested in the implementation would

be returned through the development and improvement it gives

to the performance of the entity.

3. As for the human resource related challenges, the researcher

concluded that employees’ technological skills and knowledge

is the primary qualifications that they must possess. It

would serve as a foundation for them to do their tasks

properly. Furthermore, there is also a need for Small and

Medium-Sized Enterprises to employ Information Technology

Staff since technical errors are inevitable.

4. One of the challenges above is Information Technology

related challenges. Based on the result, the researcher

concluded that the most challenging part is the resistance

to technological change. Struggles are not common for every

business however; they need to put further effort to surpass

the rapid changes in the business environment.

Recommendation
1. Even though cost is one of the major challenges faced by the

Accounting Information System user it is very important to

put in mind that still it is not consider as a hindrance to

implement a computerized system. Looking forward in its long

term effect, implementation of Accounting Information System

will help a lot in terms of the overall growth and

productivity of the business implementing it. These costs

can be considered as a long term investment that will

benefit the business in the long run if properly manage,

therefore it is highly recommended for the business to

implement an Accounting Information System regardless of its

cost because above all it is all about the benefit over the

cost.

2. Another thing that challenges the business is the need for

new learnings of technological skills. To avoid this human

resource related challenges, it is recommended that the

business must send their employees to attend to trainings

and seminar related to updated Accounting Information System

practices to upgrade their knowledge and skills relating to

the proper adoption of the Accounting Information System. By

this kind of activities, the business will not only be the

one benefiting but also the employees themselves because it

will enhance their skills leading to higher level of

competency.

3. The management must also explain to their employees very

well that the implementation of Accounting Information

System is very useful for them, that there is no need to

resist for the change because implementing this computerized

system will lead to much more convenient and easy processing

of transactions, more secure storing of data, timely

preparation of financial statements and some other benefits.