Information Technology

This study investigates the effect of Information Technology (IT) adoption on the financial reporting quality (FRQ) of Small and Medium-sized Enterprises (SMEs) in Benin City, Edo State, Nigeria. Although SMEs contribute significantly to economic growth and employment, many face challenges in maintaining high-quality financial reports due to poor record-keeping and limited IT usage. A quantitative research design was adopted, and 383 structured questionnaires were distributed to SME owners, managers, accountants, and bookkeepers. A total of 360 were duly completed and analyzed using SPSS and SmartPLS, employing descriptive statistics, Pearson correlation, and multiple regression analysis. Findings indicate that IT adoption— measured through perceived usefulness, perceived ease of use, attitude toward use, behavioral intention, and actual use—significantly improves the accuracy, reliability, relevance, and timeliness of financial reporting. However, high software costs, inadequate infrastructure, and low IT literacy hinder optimal adoption. The study recommends enhanced IT training, capacity building, and affordable technological solutions to improve financial reporting quality and promote transparency andsustainability among SMEs.