EVALUATING THE EFFECTIVENESS OF ACCOUNTING SOFTWARE IN ADDRESSING FINANCIAL MANAGEMENT CHALLENGES OF MEDIUM ENTERPRISES IN INDIA

Abstract

Medium-sized enterprises in India often encounter numerous financial management challenges that can hinder profitability, stability, and long-term growth. This study investigates the effectiveness of accounting software in mitigating these financial management difficulties among medium enterprises operating in India. The scope of the study is confined to medium-sized firms, excluding small and large enterprises. Adopting a descriptive-correlational research design, the study utilized a 4-point Likert scale questionnaire validated by three experts, and data were collected from 24 accounting personnel selected through convenience sampling. The analysis explores the relationship between the adoption of accounting software and the management of financial issues such as expense tracking, reporting accuracy, and cash flow management. Findings indicate that accounting software significantly improves financial management practices and is highly effective in reducing challenges faced by medium-sized firms. However, due to the limited sample size, no statistically significant correlation was observed between the effectiveness of accounting software, demographic profiles, and firm-related characteristics. The study recommends that medium enterprises in India adopt advanced accounting software solutions to streamline processes, enhance data security, and improve decision-making efficiency.