Abstract
This
study investigates the impact of computerized accounting systems on
organizational performance, focusing on PZ Cussons PLC. The objectives include
assessing the system's positive influence on performance, its effect on
accounting statement preparation, and its enhancement of efficiency and
effectiveness. Conducted as a survey, data was collected from 44 staff members
of PZ Nigeria Plc using questionnaires, supplemented by oral interviews and
personal observations. Data analysis involved simple mean and one-way analyses
of variance (ANOVA).
The
findings indicate a significant positive impact of computerized accounting
systems on organizational performance. Respondents largely agreed on the
system's efficacy in enhancing performance. Hypotheses testing further
confirmed its role in improving efficiency and effectiveness. Therefore, the
adoption of computerized accounting systems is recommended for organizations to
enhance their overall performance.
Based
on the study's findings, several recommendations are proposed. Government
parastatals, public sector organizations, and financial institutions are
encouraged to adopt computerized accounting systems to improve their
performance. Furthermore, business organizations should invest in the training
and development of accounting personnel to leverage technology effectively.
Embracing computer-based accounting systems will facilitate quicker customer
service, generate detailed reports promptly, and provide management with
up-to-date information for informed decision-making, aligning with the demands
of the modern "Computer Age."
TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION
1.1 Background of study
1.2
Statement of the problem
1.3 Objectives of the study
1.4 Research questions
1.5 Research hypotheses
1.6 Significance of the study
1.7 Scope of the study
1.8 Definition of terms
CHAPTER TWO
REVIEW OF RELATED
LITERATURE
2.1 Conceptual framework
2.2 What is accounting system?
2.3 What is computerized accounting system?
2.4 Methods for computerization in accounting
2.4.1 Cash – basis accounting
2.4.2 Accrual – basis accounting
2.5 Principles of computerized accounting
system
2.6 What are computer and computer trends?
2.7 Types and why we use computer system?
2.7.1 Types of computers
2.7.2 Uses of computers
2.8 Accounting packages
2.8.1
Quick books accounting
2.8.2
Peach tree accounting (sage’s software
packages)
2.8.3
Enterprise resources systems (ERPS)
2.9 Application of computer in accounting
system
2.9.1
Word processor
2.9.2
Data base
2.9.3
Spread sheet
2.10 Merits
and demerits of computerized accounting system
2.10.1 Merits of computerized accounting system
2.10.2
Demerits of computerized accounting
system
2.11 Problems and controls of computerized
accounting system
2.12 The effect of computerized accounting system
on the performance of an organization
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research design
3.3 Population of the study
3.4 Sample size
3.6 Data collection instruments and procedure
3.6.1 Personal interview
3.6.2 Questionnaire
3.6.3 Validity and reliability of instrument
3.6.4 Administration of instrument
3.7 Data analysis techniques
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND
DISCUSSION
4.1
Presentation of Data
4.2 Analysis of data
4.3 Hypotheses
testing
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND
RECOMMENDATIONS
5.1 Summary of Findings
5.2 Conclusion
5.3 Recommendations
REFERENCES
APPENDIX:
QUESTIONNAIRE
CHAPTER ONE
INTRODUCTION
1.1 Background of study
Today’s
modern technology brought into use the computer, this technology is the application of science to
gathering, recording, processing and communicating of business information by
means of electronic media. Most common tool for application is the computer,
and it involves all the transaction processing system, management information
system, various business support systems etc. The computer is a central force
in the advancement of various organizations. The historical development of
computer started with Hollerith punched card of 1880. George Alkene’s
calculator and Charles Babbage’s creation of the difference engine, Most of the
first commercial computers were used by business organizations. Before
computers were available, companies hired people to perform manual
calculations. For large companies, the costs were high. While these computers
were expansive, they were more affordable than hiring full-time employees, and
they worked much faster.
The
computer is an electronic machine, operating under the control of instructions
stored in its own memory that can accept data, manipulate the data according to
specified rules, produce results, and store the results for future use.
Computers process data to create information. Data is a collection of raw
unprocessed facts, figures, and symbols. Information is data that is organized,
meaningful, and useful. To process data information, a computer uses hardware
and software. Hardware is the electric, electronic and mechanical equipment
that makes up a computer. Soft is the series of instructions that tells the
hardware how to perform tasks.
Hartzell
(2006) defines computer as an electronic machine for processing information
automatically and very quickly. The important of computers is the ability to
handle vast amount of information and to do other processes with accuracy and
speed which cannot be manually undertaken have been recognized and appreciated
by financial institutions.
Tanembaum
(2010) sees computer as a machine that can solve problems for people by
carrying out instructions given to it.
The
American Accounting Association defines accounting as the process of
identifying, measuring and communicating economic information to permit
informed judgment and decision by users of the information. Accounting is also
the establishment, maintenance, collection and analysis of financial position of
an organization and any changes that
have occurred or may occur overtime.
Omolehinwe
(2009) defines accounting as the collection and recording of financial data
about an organization whether in the private or in the public sector and
analyzing the data so collected to suit the decision that needs to be taken and
reporting the relevant information in a summary form to the user in a form that
is meaningful to him or her.
Chionye
(2003) defines accounting system as the art of identifying, recording, classifying
measuring and interpreting in a significant manner the financial transaction of
an organization for decision making. Summarizing from time to time the
information contained in the record, for its significant presentation and
interpretation to interested parties as an aid to decision making.
Accounting
system is an organized set of manual and computerized accounting methods,
procedures, and controls, established to gather, record, classify, analyze,
summarize interpret, and present accurate and timely financial data for
management decisions.
Computerization
is the act implementing the control of equipment with advanced technology;
usually involving electronic hardware.Management is the organization and
coordination of the activities of a business in order to achieve defined
objectives.
According
to wikionary, performance is the act of performing; carrying into execution or
action; execution; achievement; accomplishment; representation by action.
Organization
is a social unit of people that is structured and managed to meet a need or
pursue collective goals. All organizations have a management structure that
determines relationships between the different activities and the members, and
subdivides and assign roles, responsibilities, and authority to carry out
different tasks. Organizations are open system; they affect and are affected by
their environment.
Some
organizations in Nigeria are prospecting in terms of efficient management in
recent time particularly within the last decade due to the adoption of computerized
accounting system.
1.2 Statement
of the problem
In
spite of the benefits of computerized accounting system on the performance of
organizations and business generally, some problems are still left unsolved and
new ones have been created by the use of computer itself, problems like; an
efficient accounting system is impossible to maintain without the application
of computerized accounting system. Also, the absence of computerized accounting
system leads to inaccurate records keeping, thereby making it difficult to
ascertain the reliability of statement of affairs which shows the position of
the organization at any time. Computerized accounting system should be applied
to ensure automation in accounting record-keeping and preparation of accounts.
High quality products are very rare today because, there are less business
organizations that practice computerized accounting system.
Other
identifiable problems are highlighted as follows;
1) High
cost of maintaining computerized accounting system.
2) High
cost of staff training on computer software.
Due
to these problems identified, it is worth carrying out the project to ascertain
possible solutions to the problems.
1.3 Objectives
of the study
The
general objective of this study is to ascertain the effect of computerized
accounting system on the performance of an organization.
The
specific objectives of the study include:
1)
To find out, whether the
computerized accounting system have positive impact in the performance of an
organization.
2)
To determine the effect of
computerized accounting system on the preparation of accounting statements in
an organization.
3)
To examine whether
computerized accounting system enhance efficiency and effectiveness in the
performance of an organization.
1.4 Research
questions
To
be able to achieve the above purposes, some questions would be asked, which
will help the researcher to gather the necessary information needed, they are:
1)
To what extent has
computerized accounting system been adopted in accounting data processing in an
organization?
2)
To what extent are
accountants/personnel familiar with the trends involved in computerized
accounting?
3)
To what extent has
constant change in computerized accounting system trends affected a good
accounting system?
4)
To what extent has
computerized accounting system been used to ensure speedy and accurate decision
making in the organization?
1.5 Research
hypotheses
Ho1:- computerized accounting system does not have
significant impact in the performance of an organization.
Ho2:-
computerized accounting system does not enhance efficiency and effectiveness in
the performance of an organization.
1.6 Significance
of the study
Most
business organizations have growth and continuity as part of their objective,
and such objectives are best realized by an efficient management, as well as
effective computerized accounting system. This has made it possible for these
organizations to gain inherent advantage while minimizing risks involved in
their daily operations.
This
research project will therefore be of immense advantage or benefit to the
management of business organizations, and banking sector using computerized
accounting system. Hence, the theories and concept contained therein can be
infused into their management system. This research will also contribute to enhance
efficiency in the following ways;
a) Speedy and accurate decision making through
the use of computerized accounting system.
b) Improvement in the delivery and quality
service.
c) The organization’s profitability will be
improved.
Firstly,
in the realm of academic, the project will be very useful to wide audience as
it applies to courses in accountancy, banking and finance as well as executive
development courses, management seminars and supervisory workshop conducted in
colleges and universities.
1.7 Scope
of the study
The
study focuses on the effect of computerized accounting system on the efficient
performance of organizations. It is therefore restricted to business
organizations and other profit making organizations.
1.8 Definition
of terms
Audit trial:-
a technique that made it possible to retrace processing of data in all other to
charge, add or delete records in a file.
Blocking: -
the storage of more than one term in a record.
Complier: -
a programming system applied by a manufacturer to convert a program written in
an automatic language into machine language.
Expert system: -
A computer system which embodies some of the experienced and specialized
knowledge of an expert. It enables a non-expert to achieve comparable
performance to an extent in the field.
Application packages: -
These are computer programmes written for the purpose of carrying out specific
task for individuals or organizations with similar or related needs.
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