The Influence of Technology on Accounting Practices in India: A Survey of Accounting Software Utilization by Micro Enterprises in Delhi

Abstract

This research paper investigates the impact of technology adoption on accounting practices within micro enterprises in Delhi, India. The primary objectives of this study were to identify the factors influencing the selection of accounting software, examine the relationship between technology adoption and perceived improvements in financial efficiency, and uncover the specific challenges faced by micro enterprises in integrating technology into their accounting processes. To achieve these objectives, a comprehensive survey was conducted among a diverse sample of micro enterprises in Delhi. The survey assessed the criteria used by these businesses to choose accounting software, their level of confidence in data security, and their satisfaction with the software's functionality. It also explored the challenges encountered during software adoption and identified the features that micro enterprises deemed essential for software improvement. The key findings of this research indicate that micro enterprises in Delhi prioritize cost-effectiveness and functionality when selecting accounting software. While technology adoption positively impacts confidence in data security and satisfaction levels, it does not consistently lead to perceived improvements in financial efficiency. Challenges in software adoption are closely related to the nature of the business, emphasizing the need for tailored approaches. Desired software improvements include enhanced tax compliance features, cloud-based access, improved reporting tools, and scalability. The implications of this study extend beyond Delhi's micro enterprises, offering insights for policymakers, business owners, and the accounting profession. Policymakers can use these findings to design initiatives that support digital transformation in small businesses. Business owners can make informed decisions when selecting accounting software, and accountants can adapt their skills to the evolving landscape of technology integration in finance.