The purpose of this study is to examine the mediating role of an internal control system in adopting a computerized accounting system and SMEs performance. Data were collected by sending structured five points Likert scale online questionnaires to the Accounting Professionals of SMEs from the Textile industry of Pakistan. The data was analyzed by using Smart PLS 3.2.8 software. The findings of the research show that the Internal Control system partially mediates between computerized accounting systems and organizational performance. Results also indicate that computerized accounting system and internal control system has a significant role to improve organizational performance. The findings support the positive relationship of computerized accounting systems and internal control systems in SMEs of the Textile Industry of Pakistan. Limited research is available on Computerized Accounting Systems in SMEs with mediating role of internal control in emerging economies Managerial Implication, limitations, and future research directions are also discussed.