Factors Affecting the Adoption of Computerized Accounting Systems: Case Study of Private Hospitals in Sulaymaniyah

An accounting information system may be computerized and based on information technology, manually operated, or it may be in the middle. Regardless of the method chosen; the process remains the same. Financial data must be gathered, entered, processed, stored, and reported via an accounting information system. The Information is produced using technology and software that might be either manual or computerized (Hamasalih et al., 2025). Computerized accounting software is designed to track a company's financial activities and provide annual, quarterly, or monthly financial reports based on the company's preferences. It can also be used to generate tax returns and other reporting options (Salih, 2020). Evaluate, analyze, and evaluate the profitability and operational performance of the business (Abdullah et al., 2020). The environment in developed and developing countries varies greatly. Furthermore, each developing nation's cultural, political, and economic realities are frequently very different from one another. Thus, it is preferable to refrain from creating a standard. prescription and offer suggestions without first considering the unique characteristics of every country. Consequently, it is imperative that we deepen our comprehension of the decision-making and execution processes involved in the adoption of computerized accounting information systems in particular developing countries such as Iraq. Private hospitals in Sulaymaniyah have started to implement computerized accounting systems (CAS) as the awareness about its benefits is growing, which includes better access to financial data, increased productivity and accurate reporting (Hameed et al., 2025). However, due to several obstacles including high implementation cost, staff with limited technical knowledge, reluctance to change manual procedures and data security concerns the impact on hospital operations is still unknown. To reap the benefits of CAS these obstacles must be addressed. Data security, organizational culture, staff readiness, training and financial resources must be considered. Private hospitals can improve financial management and fully enjoy the benefits of CAS by overcoming these challenges proactively (Hamasalih et al., 2025). To see what the status of computerized accounting systems is in private hospitals in Sulaimaniyah, type of system, features, and benefits. To identify the main challenges and barriers in adopting and implementing computerized accounting systems in private hospitals, such as staff training. Hence, to evaluate the effectiveness and efficiency of computerized accounting systems in financial management practices, data accuracy, reporting timeliness and financial information transparency. Further, to determine the variables affecting private hospitals in Sulaimaniyah in adopting and deploying computerized accounting systems. To inform recommendations for system improvement and customization for private hospital settings, this involves seeing the status, identifying major challenges and barriers, evaluating the systems and gathering information from finance staff, administrators and healthcare experts (Salih, 2021).

2. Theoretical framework and literature review

The healthcare sector is paying more attention to computerized accounting systems (CAS), especially in private hospitals, because of their potential to enhance operational effectiveness and financial management. With an emphasis on the special opportunities and challenges these facilities face, this chapter examines the factors influencing the adoption of CAS in Sulaimanyah's private hospital sector. The accounting system is a prerequisite for this environment. The hardware and software that make up the operating environment are what the accounting system uses to function. The hardware structure is determined by the software. The number of users, hardware preferences, privacy requirements, and the types of operations carried out by functional departments all influence the choice of hardware.  As a result, computerized accounting systems are built with several interconnected structural elements or subsystems that cooperate to carry out the accounting function as effectively and efficiently as possible, including gathering, recording, arranging, compiling, and evaluating business transactions, as well as providing stakeholders with financial data. A Computerized Accounting System (CAS) is a must-have for businesses looking to simplify financial management. With its user-friendly design, it handles everything from data entry and reporting to compliance with legal standards. Whether you're tracking bills, managing payroll, or planning budgets, a CAS ensures everything runs smoothly (ALshbiel, and Al-Awaqleh, 2011). It’s easy to install, doesn’t require a large IT team, and provides essential tools for managing assets, projects, and supply chains. By automating repetitive tasks and providing real-time insights, a CAS saves time, reduces errors, and keeps your finances organized. A computerized accounting system, according to systems theory, is the result of the integration of several parts or subsystems. The system's structural characteristics are represented by the architectural framework that these components comprise. Software architecture is the logical division of a program into several components with the goal of improving system dependability and performance. In his book, Development of Computerized, he stated that the hospital's computerized accounting system, as well as the creation and deployment of the network, not only altered the hospital's previous accounting management but also followed prevailing trends. The hospital's leadership must accurately recognize the benefits of the computerized accounting network system and provide strong support for its establishment and implementation. This is because the computerized accounting system, its establishment, and its implementation enhance the hospital's management level and market competitiveness to some extent. Western nations are certain that the adoption of computerized accounting systems will have positive social and economic effects. Automated accounting systems face challenges like data protection from viruses, power outages, and hacking. Control over access, particularly for customer data, are crucial. Management may be held accountable for data theft. Accurate data entry is essential, as a single error can cause data loss (Abdullah et al., 2025).   This segment incorporated studies by scholars, internationally, on how independent variable related to the dependent variable (Salih, 2025). Concepts influencing computerized system adoption and concepts affecting those systems' applicability differ from one another. Some researchers examined more general adoption concepts, like the theory of reasoned action or its relationship to the variables in the TAM model. Fatah, and Amin, (2023) carried out a study with the goal of implementing the Hospital Information System (HIS) in Malaysian tertiary hospitals. They investigated the factors that prevent implementation as lack of dedication, incapacity to supply a large information technology infrastructure, difficulty locating appropriate software and hardware, and shortage of qualified IT staff. Palani et al, (2025) conducted a study focusing on the journey towards creating a paperless hospital environment, using the Arusha Lutheran Medical Centre as a case study. He identified challenges hindering this transition, particularly the shortage of skilled personnel. According to Omar et al, (2025), costs, in the broadest sense, are the actual or probable sacrifices of financial resources expressed in monetary units that take place to achieve specific goals. Costs, in their strict sense, can be seen as the giving up of financial resources to acquire assets. The cost of a computerized accounting system consists of equipment costs, assembly costs, installation costs, and testing costs. Specially trained staff is needed to operate the system. Therefore, large training costs are incurred to understand hardware and software usage continuously because newer types of hardware and software are needed to ensure the effectiveness and efficiency of the use of computerized accounting systems. Qadir, & Fatah, (2023) reported on the factors influencing small businesses to use computerized accounting systems. The findings indicated that non-users of the accounting software (CAS) cited two main reasons: one was related to innovation, and the other was related to the decision-makers characteristics within the organization. The first justification (innovation element) was that a CAS would not benefit the company and was not necessary. The owner manager's lack of IT expertise was the second factor (a feature of the organizational decision maker). Based on the literature review mentioned above, the researcher came up with the following theory:

H1: There is a statistically significant relationship between foundation and computerization of the accounting system.

H2: The computerization of the accounting system and human resources has a statistically significant link.

H3: The cost and computerization of the accounting system are correlated in a statistically meaningful way.

H4: The computerization of the accounting system and administrative performance has a statistically significant correlation.

RESEARCH METHODOLOGY

This section explains the different approaches used to investigate the suggested research question (Rashidand Fatah, 2022). It outlines the sampling strategies, data collection procedures, kinds of data to be gathered, and data analysis strategies to be used throughout the entire investigation (Albright and Ingram, 2007). In this study, dependent variables are the adoption of CAS in private hospitals while independent variables are factors which affect adoption CAS in private hospitals (Yaqub et al., 2024). The relationship between and among these variables are presented diagrammatically for supplementary understanding of the factors affecting applicability of CAS in private hospitals.