Factors Influencing the Adoption of Accounting Information in Decision Making among Microfinance Institutions in Tanzania; A Case Study of Ecumenical Church Loan Fund Arusha

Accounting Information has helped at a great extent the organization management to know their financial position, financial performance and changes in financial position of a company that is useful to a wide range of users in making budget decisions. The purpose of the study was to determine factors influencing the adoption of accounting information in decision making among microfinance institutions in Tanzania, covering Ecumenical Church Loan Fund in Arusha. The study was conducted through a descriptive design covering a sample of 61 respondents drawn from 150 employees. Questionnaire and interviews were used for data collection. The collected data was analyzed using descriptive statistics mainly frequencies and percentages. The findings show that quality of accounting information was influenced by the compatibility of the accounting with budgeting information systems in use, presentation of accounting reports, early/timely submission of the financial and accounting reports to the decision-makers, independent internal audit unit, and the availability of qualified accountants, and the user capability was influenced by working experience, the culture of reading, general knowledge of ICT and knowledge of the ECLOF accounting systems, knowledge of the organization accounting and job position. The study revealed the benefits of using accounting information as improved decision-making, improved productivity, increased sales, cost reductions, improved profits, market efficiency, and competition, ease the analysis and control of accounts, show the direction of the organization and identify business opportunities to the organization. The study recommends that all staff in the accounting department is well trained. Sufficient funds should be set aside to provide for staff training in order to have accurate records of transactions for decision making.