Impact of Accounting Information Systems on Profitability of Small Scale Businesses: A Case of Kampala City in Uganda

The purpose of the study was to examine the impact of accounting information systems on profitability level of small scale businesses in Kampala city. Uganda, East Africa. The Major problem identified was that, most small scale businesses do not have accounting information systems which result into continuous low performance levels. Descriptive method was used where qualitative data was collected. Secondary data was collected to analyze the impact of accounting information systems on profitability level of small scale businesses. Research findings revealed that most small scale businesses do not apply accounting information systems which result into low profits. In addition to that, the findings show that there is a positive relationship between accounting information systems and profitability level of small scale businesses. Accounting plays an important role in our economic and social systems especially in its management and great work it does in facilitating management decision making process. This study therefore recommends that small scale businesses should adopt these systems in their business management. The Government and policy makers should come up with policies and guidelines that will facilitate the implementation of these systems in the business environment. Such policies could include tax waivers or tax reductions on equipment to be used in these systems.