Influence of Automated Accounting System on Payroll Preparation of Small and Medium Scale Enterprises in Rivers State

Abstract

This study investigated the impact of automated accounting systems on payroll preparation among Small and Medium-sized Enterprises (SMEs) in Port Harcourt. Three research questions guided the study, and three null hypotheses were tested at a 0.05 significance level. A descriptive survey design was employed, with a population of 6,838 registered SMEs in Port Harcourt. A sample of 400 SMEs was selected for the study. Data was collected using a research instrument with a 4-point scale: Very High Extent (VHE-4), High Extent (HE-3), Moderate Extent (ME-2), and Low Extent (LE-1). The instrument's reliability was confirmed with a Cronbach Alpha coefficient of 0.81. Three experts in Business Education and Measurement and Evaluation validated the instrument. Mean and Standard Deviation were used to answer the research questions, while t-test inferential statistics were employed to test the hypotheses. The findings revealed that automated accounting systems, specifically Square Payroll, QuickBooks Payroll, and Data Processing Payroll, significantly influence payroll preparation among SMEs to a very high extent. Based on the findings, it is recommended that employers of labor should prioritize payroll preparation by ensuring that all organizational employees possess the necessary skills for efficient payroll processing.