The study focused on establishing the level of usage, effects, benefits and challenges of Computerized Accounting Systems (CAS) by Small and Medium Scale Enterprises (SMEs) operating in the Yagba East Local Government Area of Kogi State. Systematic sampling techniques were used to select 370 SMEs for the study. Descriptive statistics and inferential statistics were used to analyze the data. Thus, the results of the study revealed that only a few SMEs are using computerized accounting software. The low level of usage is attributed to cost, personnel, and lack of information on the benefits of using CAS. Those using computerized accounting indicated that the systems play important roles in the success of their business objectives including timely information management, large data storage capacity, reduction on clerical works, and enhanced customer satisfaction/needs. Conclusively, usage of computerized accounting system by small and medium scale enterprises have the impact to improve their performance; meanwhile, lack of information on the benefits of the usage and knowledgeable personnel are negatively affecting the usage of the software. Therefore, it is recommended that small scale enterprises (SMEs) be enlightened on the benefits of using CAS.