FACTORS AFFECTING THE ADOPTION OF COMPUTERIZED ACCOUNTING SYSTEM (CAS) AMONG SMEs IN JAFFNA DISTRICT

Small and Medium Enterprises (SMEs) have been recognized as an important strategic sector for promoting growth and social development in Sri Lanka. It is necessary to use computerized reporting system instead of manual recording system for recording business transaction to run business smoothly and achieve growth and profitability. However, many of these enterprises have not adopted to the Computerized Accounting System (CAS) despite the benefits of this system. This study was designed to identify the factors affecting to the adoption of CAS among Small and Medium Enterprises in Jaffna district. It will be caused to recognize constraints which affect to the adoption of CAS among SMEs and assist to growth and social development of SMEs in Sri Lanka. Primary data were used as the data source of this study. Data were collected using a questionnaire and analyzed those using descriptive statistics, correlation and regression analysis. Government of Sri Lanka should encourage SMEs for adoption of CASs. Finally, SMEs should understand benefits and value of CAS when they adopt it to their organizations. We can confirm that adoption of CAS will lead to growth of SMEs in Jaffna district.