Abstract:

This paper reports the results of a descriptive study which investigates the usage of accounting information and computerized accounting information system (AIS) among small and medium sized firms (SMEs). Using mail questionnaire, data was collected from 136 non-manufacturing bumiputra SMEs in Malaysia. Findings from this study suggest that uses of accounting information among non-manufacturing bumiputra SMEs are varied. Furthermore, while about half of the firms sought advice from accounting firms, most of them visited accounting firms only once a year. Only a very small percentage of firms that prepared accounting information internally use computerized AIS. This study has made important contributions by providing important insights into the financial management practices of non-manufacturing bumiputra SMEs, which has received little attention thus far from academic, governmental and professional bodies. In conclusion, this study suggests that the usage of accounting information and computerized AIS among non-manufacturing bumiputra SMEs is still minimal. Therefore, relevant government agencies need to play a more active role in creating awareness of the importance of accounting information among bumiputra SMEs.