The Application of Accounting Information Systems by Small and Medium- Sized Enterprises: Evidence from Saudi Arabia

Abstract

The aim of this study is to explore the extent of accounting information system application in small- and medium- size enterprises in Saudi Arabia to assess its ability to record and report their financial capacity. The study used two methods: The first was a theoretical approach through proposing a seven elements model of accounting information system including goals, standards of accounting systems, inputs, processing, outputs, resources, control, and feasibility of the acquisition of accounting system. The second method was a field test of the hypotheses. The outcome of this study indicated the presence of significant differences between the accounting system elements of smalland medium- size enterprises. However, the differences did not affect the ability of the accounting system to prove and disclose enough information about the financial capacity of those enterprises. This study is important for those interested in small- and mediumsize enterprises in academia and profession as well. The study also contributes to bridging the apparent lack of accounting studies on small- and medium- size enterprises, particularly in Saudi Arabia.