Mobile Accounting Software and Financial Performance of Small-Scale Hotels in Mombasa, Kenya

Abstract

This research explores the effects of mobile accounting software on the financial performance of Small and Medium Enterprises (SMEs) in Kenya, specifically focusing on the hotel industry. The utilization of accounting software, which includes various modules like trial balances, payroll, accounts receivable, and accounts payable, improves efficiency through task automation and error reduction. Mobile applications, accessible via platforms such as Google Play Store and Apple Store, further enhance financial processes for SME proprietors, providing instant access to financial data and aiding in precise record-keeping. The study emphasizes the categories of mobile accounting applications—bookkeeping, expense tracking, and invoice tracking—and their combined impact on financial performance. Empirical data from different nations, such as Indonesia and Germany, highlights the advantages of these apps in enhancing financial literacy and management capabilities among SME owners. Particularly in areas like Tudor Ward, Mombasa, Kenya, the awareness and utilization of mobile accounting applications exhibit promising outcomes in elevating financial performance significantly. The study concludes that integrating mobile accounting software is crucial for attaining heightened efficiency, transparency, and financial advancement for SMEs. As technology progresses, its role in bolstering the financial well-being and endurance of small enterprises will grow increasingly pivotal.