International Journal of Academic Management Science Research (IJAMSR) ISSN: 2643-900X Vol. 5 Issue 10, October - 2021, Pages: 41-55 www.ijeais.org/ijamsr 41 Effects of Accounting Information System on Performance of Small and Medium Scale Business in Nigeria Olajire, Isaiah Olawole 1 , Olaleye, Olalekan Olumide 2 , Kolade, Akinpelu Ayobami 3 , Ayoade, Abayomi Adewuyi 4 1 Department of Banking and Finance, Osun State College of Technology, Esa-Oke, Osun State, Nigeria E mail: jire2k9@gmail.com 2 Department of Business Administration and Management, Osun State College of Technology, Esa-Oke, Osun State, Nigeria E mail: mide.olalekan@gmail.com 3 Department of Business Administration and Management, Osun State College of Technology, Esa-Oke, Osun State, Nigeria E mail: akinpelu06@yahoo.com 4 Osun State House of Assembly, Osogbo, Osun State, Nigeria E mail: abayomiayoade@gmail.com Corresponding Author: Name; Kolade, Akinpelu Ayobami, Phone; +2348034641211, E-mail; akinpelu06@yahoo.com Abstract: The purpose of this study is to assess the impact of accounting information systems on small and medium enterprises (SMEs) in Nigeria, using Osun State as a case study. The research method used in this study was descriptive research. Ten (10) SMEs with a population (staffs) of 780 were chosen for sample size from the thirty-seven (37) registered SMEs in Osun State. A total of 264 people were chosen from ten SMEs with a total population of 780 people. For this study, primary data was employed, and 264 questionnaires were distributed to SMEs in Osun State. The frequency distribution, percentages, mean, and standard deviation were used to examine the data. The chi-square test was used to examine hypotheses. The study discovered that using an accounting information system leads to better financial reports and decision-making. The study discovered a link between the deployment of an accounting information system and better credit access. According to the findings, there is a strong link between present accounting methods and the performance of SMEs. In addition, accounting information systems have a substantial impact on SMEs' performance, and the usage of accounting data has a considerable impact on SMEs' access to credit. Keywords: Accounting Information System, Credit facility, Small and medium scale enterprises, financial reports 1. INTRODUCTION In today's business environment, the constant demand for business development, growth, and expansion has forced managers to embrace more advanced management tactics aimed at improving organizational decision-making. The majority of these methods are geared toward keeping firms afloat in the face of rapid technological advancements, increased awareness, and increasingly demanding client demands. Adoption of information systems within commercial organizations is one of these tactics (Davoren, 2019). The arrangement of logical and physical items, data, procedures, policies, protocols, skill sets, hardware, software, responsibilities, and other components that determine a company's capabilities is referred to as information systems (Borhan and Bader; 2018). An information system is one that delivers important information for better decision-making through planning, organizing, directing, leading, and controlling activities inside an organization. Accounting Information System is a system that provides people with necessary data about an organization's actions in order to assist employees, owners, customers, and other stakeholders in their operations (Kashif, 2018). It's vital to remember that decision-makers rely heavily on the efficient and effective use of the organization's limited resources, which is reliant on the availability of high- quality accounting data (Agboola et al., 2020). Accounting Information System (AIS) is a structured system that businesses use to store, organize, process, and report financial data in order to assist accountants, financial officers, consultants, auditors, regulators, and tax authorities in making informed choices (Agboola et al., 2020). Increased functionality where the timeliness of providing AIS is significantly improved, improved accuracy of internal checks and balances, the system ensures that accounts are properly balanced and with efficient processing times, and providing an improved external reporting interface are just a few of the advantages of AIS adoption for organizations (Tilahun, 2019). AIS digitize records like as financial statements and performance reviews, making it easy for investors and shareholders to see how well their investments are performing in today's market. These investors can be used to provide equity funding for the organization's expansion (Tilahun, 2019; Szczepaska-Woszczyna, 2018). According to Al-Dalaien and Dalayeen (2018), information systems refers to the process of arranging a firm's resources, such as data, procedures, rules, protocol, skills software, hardware, and other components, to improve the firm's capabilities and