Accounting Technology and Financial Decision Making among Small Business Owners in Developing Countries: A Focus on Bangladesh

Abstract

Aims: Although there is growing use of digital technology in financial management, little is known about the impact of accounting technology on financial decision-making in small business enterprises (SBEs) in developing economies such as Bangladesh. This study aimed to investigate how accounting technology is influencing financial decision-making in Bangladeshi small business enterprises (SBEs) based on examination of trends, benefits, and adoption challenges. Study Design:  A mixed-method cross-sectional design using quantitative questionnaires and qualitative interviews. Place and Duration of Study: The study was conducted in Dhaka, Chittagong, and Khulna SBEs of Bangladesh during the period from January 2025 to March 2025. Methodology: Quantitative data were gathered using structured questionnaires to 200 small business owners who were chosen using stratified random sampling. The questionnaire elicited accounting software types used, usage frequency, effectiveness in making financial decisions, and perceived barriers to adoption. In addition, qualitative data were gathered using face-to-face interviews with 20 entrepreneurs, comprising accountants, SME advisors, and technology service providers. Descriptive statistics and thematic analysis were used in examining the findings. Results: Among the 200 respondents, 61% used accounting software like Microsoft Excel (45%), Tally (25%), and QuickBooks (18%). Its use was strongly correlated with better accuracy of finance (72%) and quicker decision-making (68%) (p < 0.05). The key issues were lack of digital literacy (39%), high cost of software (32%), and data security issues (21%). Qualitative findings highlighted that the adoption of technology reduced dependence on outside accounting services and improved transparency in operations. Conclusion: Accounting technology has a profound impact on enhancing the financial decision-making capabilities of small business entrepreneurs in Bangladesh. Yet, focused policy initiatives are required to combat adoptions hindrances such as training, subsidization of costs, and better digital infrastructure to enable equitable access for all areas.