Masters Degrees (School of Accountancy)

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Browsing Masters Degrees (School of Accountancy) by Subject "Accounting -- Computer programs"

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    Addressing some of the challenges faced by small and medium-sized entities during the selection and implementation of accounting software packages
    (Stellenbosch : Stellenbosch University, 2016-03) Bishop, William Arthur; Steenkamp, Len P.; Stellenbosch University. Faculty of Economic and Management Sciences. School of Accountancy.
    ENGLISH SUMMARY : Alignment between an entity’s strategic business objectives and its information system (IS) has been a popular research area over the last couple of years. There is a considerable amount of literature on how to solve this alignment issue in larger entities, but limited research is available on the challenges that small and medium-sized entities (SMEs) face when having to align their strategic business objectives with their ISs. Various small generic accounting software packages are available for purchase by SMEs. These accounting packages all have functionalities that enable SMEs to keep proper accounting records; however, due to their generic nature, these accounting packages do not always have sufficient functionalities to drive the SMEs’ strategic business objectives, resulting in IS misalignment. Newly established SMEs face the challenge of both selecting the correct accounting software package at the start of their establishment and proper implementation of the selected package. The same challenge is faced by growing SMEs that are planning to replace, improve or expand their current accounting software. Not selecting the correct accounting software package and not managing the package installation and configuration processes properly will result in the accounting software not addressing the strategic business needs of the SME. These are two of the main reasons why small generic accounting software packages often fail to drive the entire business system of SMEs. The purpose of this research assignment was to review and discuss the two main challenges faced by SMEs when selecting and implementing generic accounting packages. The purpose was further to develop a mapping between strategic business objectives commonly found within SMEs and software package functionalities that SMEs can refer to during the selection and implementation of new accounting software packages. It also examined the potential of (PRINCE2) Projects in Controlled Environments as a project-management framework for application by SMEs during the implementation of new accounting software. A non-empirical approach was followed throughout this assignment, whereby a literature review was performed on strategic alignment issues faced by SMEs, the strategic business objectives of SMEs, the functionalities required for strategic alignment within SMEs and the tailoring potential of PRINCE2. It was found that in order for an SME to select the correct accounting software package, it is important that it invests time and effort in considering the software functionalities provided by the software package and maps it against its strategic business drivers to prevent failure of the package. It was further concluded that the level of innovation the SME strives towards has a direct impact on the software package functionality requirement. PRINCE2 was found to be a suitable framework for use by SMEs in the implementation of accounting software packages only if tailored properly to incorporate the specific needs of the SME and adjusted to specifically address strategic alignment issues.