Role of Analytics and Accounting Information Systems in Profitability

The use of accounting information systems by small businesses has resulted in time savings, as well as increased reliability and security due to the availability of backups. This has allowed for the recognition of profits in both the short and long term, ensuring the continued operation of the business. However, small businesses often neglect profitability ratios, such as returns on product sales or profit margins, due to a lack of technical knowledge. Additionally, they struggle with performance comparisons and assessing their competitiveness with other companies. Standard costing methods and financial order inventory models have also been found to be ineffective for small businesses. Policy and government decision makers will need to devise policies and regulations that will facilitate the introduction of these devices into the corporate environment. This type of policy could include tax exemptions or even tax relief for devices used in these ways