Perceived usefulness, ease of use and financial reporting practices .Perceived usefulness, ease of use and financial reporting practices of small medium Businesses in Uganda.

Abstract

The purpose of this study was to examine the relationship between perceived ease of use, perceived usefulness, attitudes and financial reporting practices. The study was guided by the following objectives. To find out the relationship between perceived ease of use and financial reporting practices, to explain the relationship between perceived usefulness and financial reporting practices, to explain the relationship between perceived ease of use, attitude and financial reporting practices, to explain the relationship between perceived usefulness attitude and financial reporting practices and finally, the relationship between ease of use and usefulness in small medium businesses. Cross- sectional and correlation surveys designs were used to establish the relationship between the study variables. The study used a sample size of 217 SMBs from selected economical sectors that included manufacturing, construction and finally hotels and restaurants in Kampala district. Simple random sampling was used. Findings indicated that the relationship between perceived ease of use and financial reporting practices in SMBs had regression results represented by 32.6% and this implies an increase in ease of use significantly influences financial reporting practices. In addition, the relationship between usefulness and financial reporting practices had regression results of 57.5% which implies that perceived usefulness significantly influences financial reporting practices in SMBs. There was also a significant regression relationship between ease of use, attitude and financial reporting practices in SMBs with results of 24.3% and finally a positive relationship between perceived usefulness, attitude and financial reporting practices with regression results of 64.4%. The study recommends that owners of small medium businesses should adopt the use of financial reporting practices in their businesses as this will help them keep truck and progress of their businesses through the use of book keeping records that can be used to generate financial reports.