This paper assesses the stakeholder-related factors which influence Accounting Information Systems (AIS) effectiveness in Tanzania’s Local Authorities (LAs). Using data collected from 19 LAs in Tanzania, we tested six factors: management support, qualification of accounting staff, education of councilors, and availability of AIS consultants, external auditor specialization and councilors’ involvement in AIS matters using canonical correlation analysis (CCA). The results from CCA show that management support, external auditors’ specialization and councilors’ involvement are the most critical factors in ensuring AIS effectiveness in the country’s local authorities. Next were the qualifications of accounting staff and the education level of councilors, which were established as strong factors for AIS effectiveness in LAs. The study, therefore, concludes that for LAs to have effective AIS they need to take measures such as recognizing the importance of AIS effectiveness in organizational operations, allocate sufficient resources and time for the development and implementation of AIS, provide training on computerized AIS, attract qualified personnel as well as raise the mandatory minimum education level requirement for LA councilors.