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Technology has changed how people and businesses operate globally along with technological, economic, social, and cultural political advancements and challenges. Accounting information has become a vital information and technology tool for financial controls and performance management evaluation (Kurniawan & Diptyana, 2011).

Accounting software was designed in the era of technology and information systems to aid with financial operations, more so in the period of Covid-19, where technology became the sole saviour of some semblance of continuation of activities working and studying from home became possible that had been unthought of (Aziz et al., 2021).

Progress has been made, such as using accounting data strategically. Small and medium-sized businesses (SMEs) are an integral part of any society, contributing considerably to economic development (Ahmed et al., 2021). According to Ismael et al., small and medium-sized businesses (SMEs) contribute significantly to industry employment (2021). According to Ali et al. (2021), developing nations must have a sector to support growth and social development. The research emphasized that the SME sector has emerged as a significant element and a substantial portion of the private sector in emerging countries.

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Moreover, according to Sabir et al. (2021), small and medium-sized enterprises (SMEs) account for around 65 percent of a nation’s gross domestic product (GDP). Accounting software has significantly impacted modern businesses, encouraging companies to be more efficient (Aziz et al., 2021). It saved money and time on commuting and petrol, and the extra time was spent working.

It blurred the lines between work and life and allowed for work-life balance. Advanced statistical processing systems and accounting software may be used to analyze the risk of certain operations and anticipate future income (Ahmed et al., 2021). The advantages of using accounting software have been developed and tested by larger organizations and should be transferrable to small and medium-sized enterprises.

However, it has been observed that effective expansion in accounting software is constrained less by the availability of suitable infrastructure than by the influence of corporate attitudes about accounting software usage (Scapens and Jazayeri, 2003; Scapens et al., 1998). As a result, this research aims to look into the potential impact of accounting software on SME performance in Pakistan. It will also quantify the added value of accounting software and its impact on key performance measures like quality, cost, and decision-making.

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