OAMEN PHILIP OSAGIE

This study examined the impact of information technology (IT) on accounting systems in selected organizations in Edo State, Nigeria. Specifically, it assessed the effects of technological innovation, technological skills, technological drawbacks, and labour cost reduction on accounting system performance, including efficiency, accuracy, and reliability of financial reporting. The study adopted a quantitative research design, utilizing structured questionnaires administered to 384 accountants, auditors, and finance officers. Data were analyzed using descriptive statistics and multiple regression analysis. The findings revealed that technological innovation and technological skills positively and significantly enhance the performance of accounting systems, while technological drawbacks, such as system failures and cyber threats, negatively influence system efficiency. Additionally, automation and IT integration were found to significantly reduce labour costs, thereby improving productivity and operational efficiency. The regression results indicated that approximately 65.9% of the variation in accounting system performance is explained by the combined effects of the IT-related factors studied. The study concludes that information technology plays a crucial role in modernizing accounting operations, improving data accuracy, and facilitating decision-making.