Implementing A Software Driven Finance And Accounting Enterprise Resource Planning System In Msme Organizations

Abstract

The advent of information technology has brought a significant transformation in the means and mechanisms by which MSME organisations operate. For example, today the focus has shifted from self-centred cubicles and individual functions to the process of an integrated business model. In other words, the executive business management want to focus on the entire MSME organisations in a holistic manner rather being concentrated on a single business vertical.

 In the process of bringing about this significant transformation Information technology has played a crucial role. With the power of internet and faster processing speed it has ensured that the business verticals in MSME organisations are integrated. Consequently with this integration, the focus of executive management team of MSME organization has gradually moved towards a more robust, stable and data driven finance and accounting system for Enterprise Resource Planning. However, developing an integrated financial and accounting system for Enterprise Resource system for MSME organization is not an easy task. Several constraints, issues and challenges are required to be taken into consideration.

 For example, the problem of standardizing accounting standards and the need to arrive at the common terminology itself pose a big problem. This paper is thus an attempt to develop a finance accounting system for MSME organization for the smooth functioning of Enterprise Resource Planning. It starts with the process of an extensive literature review followed by determining the gaps in the literature. Based on these findings, an attempt is made to develop software driven accounting system which will meet technological requirements of the executive management in the MSME organization. The sampling used is purposeful sampling and the sample size used is 112 and comprised of people from the Delhi/NCR region. The contribution to the existing literature is that very little attempt has been made in the form of development of software in the MSME organizations.