The software selection and review processes for an accounting information system by Maltese firms

Abstract

Purpose: Most firms make use of computerised software as part of their accounting information system. The accounting information system processes data into meaningful information for decision making and financial reporting purposes. Choosing the appropriate accounting software which allows a firm to achieve its business objectives is thus a very important decision. The purpose of this study is thus to evaluate the software selection and review processes for accounting information systems by Maltese firms. Design: The objectives of this study were achieved by conducting semistructured interviews with a number of firms and administering a questionnaire to a large sample of companies of all sizes. Findings: The results obtained indicate that the vast majority of Maltese firms make use of computerised accounting systems, purchased off-the-shelf as stand-alone accounting software. Senior management and accounting personnel are nearly always involved in the software selection process, with the functionality of the software being the most important software category taken into consideration in the final decision. After purchasing the software, few firms review their accounting systems on a regular basis - most prefer to wait for business requirements to change or until problems start arising. Conclusions: The software selection process is generally given significant attention, and businesses tend to spend a lot of time at this decision stage. Most firms are satisfied with their software choice, although a number of improvements to the accounting software and systems have been identified, as problems inevitably always emerge. However, firms are reluctant to change over to new systems due to the uncertainty and disruptions change brings with it. Value: Due to the significance of having a well functioning and robust accounting system, this study recommends using software tools to aid in the final software purchasing decision, as well as performing frequenting accounting system reviews to ensure the system's relevance in the competitive business environment.