The use of different accounting packages in Malta and an evaluation of changing an accounting package as a cost reduction exercise

Abstract

For better or for worse, computers have infiltrated every aspect of our society. Businesses must adapt to the continuous changing environment to survive. Accounting is constantly adapting to this changing environment, by examining carefully the types of financial information needed in this fast-paced environment. To prepare the required financial information, different firms make use of different accounting packages available on the market. Aim: The objective of this dissertation is to evaluate which type of accounting packages are used in Malta and the factors which are taken into consideration when one is selecting an accounting system. The study also evaluates cost reduction that may occur when one changes an accounting package. Method: After reviewing literature available on the subject, a questionnaire was sent to 100 local firms from different business activities to collect information on the local scenario. By means of a case study an analysis of the cost reduction experienced in keeping accounts is considered. The case study also deals with payback period, a capital investment technique, used to evaluate the number of days and years required to recover the investment outlay of the new accounting package from the returns attributable to that investment.