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Research Paper | Accounting | Volume 15 Issue 5, May 2026 | Pages: 794 - 801 | India
Adoption and Impact of Accounting Software on Financial Efficiency in MSMEs: A Study with Special Reference to Tumkur District, Karnataka
Abstract: Micro, Small, and Medium Enterprises (MSMEs) form a core component of Karnataka?s economic structure, and the adoption of digital accounting tools has become increasingly essential for improving financial accuracy, transparency, and operational efficiency. This study examines the adoption and impact of accounting software among MSMEs in Tumakuru District, focusing on its role in enhancing financial efficiency. A quantitative research approach was adopted, using structured questionnaires administered to 115 MSMEs that utilize accounting software. Descriptive statistics and one-way ANOVA were used to evaluate variables such as financial accuracy, error reduction, cash-flow management, decision-making insights, tax compliance, operational cost reduction, and ease of use. Results indicate strong positive perceptions, with high mean scores across most variables, demonstrating improvements in financial efficiency. ANOVA findings revealed statistically significant differences across noticed benefits and satisfaction factors, leading to the rejection of both hypotheses. Study confirms that accounting software positively influences financial efficiency in MSMEs and highlights the requirement for strong support mechanisms, periodic system enhancements, and comprehensive awareness programs to facilitate higher adoption and sustained efficiency gains.
Keywords: Accounting software, MSMEs, Financial performance, Cloud-based accounting
How to Cite?: Lathesh C R, "Adoption and Impact of Accounting Software on Financial Efficiency in MSMEs: A Study with Special Reference to Tumkur District, Karnataka", Volume 15 Issue 5, May 2026, International Journal of Science and Research (IJSR), Pages: 794-801, https://www.ijsr.net/getabstract.php?paperid=SR26508153127, DOI: https://dx.dx.doi.org/10.21275/SR26508153127