This project is
focused on the impact of computerization of accounting function as related to
organisational productivity using Beta Glass Plc – A manufacturing company - as
a case study.
study aim is to provide a simplified, but thorough approach to understanding of
computer utilization as a tool for enhancing effectiveness and efficiency in
accounting functions and improvement in the overall organisational
the fact that we are in computer age, and for the fact that volume of
activities in our various organisation has being on increase which manual data
processing operation cannot cope with.
Hence, the need
for more efficient and effective means of data processing is required, which
the advent of computer squarely fit in to address.
TABLE OF CONTENTS
of Contents v
Problem Statement 2
Objective of the Study 3
Relevance of the Study 4
Research Hypothesis 6
Scope and Limitation 7
Definition of Terms 8
The Company Beta Glass Plc 11
Conceptual Framework 11
Computer and the Documents 31
The manual Book-keeping Compared with EDP System 38
Internal Control Computerization 41
Effect of Computerization of Accounting Function
on Beta Glass Plc, Productivity 45
Nature and Sources of Data 48
Research Population/Sampling Plan 49
and Administration of Data Collection 50
Data Collection Instruments 51
Choice of Data Analysis 53
Constraints in Data Collection. 54
of Data and Interpretation
Content of the Questionnaire 56
Simple Parentage data Analysis Techniques 56
Summary, Conclusion and Recommendation 74
Technology development in many countries is evolving,
different scientific ideas, one of which is the invention and use of computer
for information processing system in both private and public organisational
environments including governmental establishments.
The recent increase in demand and usage of computer
testifies that we are in computer age. The modern day business atmosphere
requires any organization intending to compete effectively and efficiently to
optimize its objective, to have its system vis-à-vis its integral components
computerized. Hence, the need for computerizing the accounting system which
form a part of these components with the functions of recording, classifying,
summarizing financial transactions and interpreting the result thereof to
various users, as well as establishing internal control system to safeguard and
protect the assets of the business is quiet obvious.
The ability of computer is to receive input (raw data)
process and transform it to useful and desirable output (information) has
gained credibility in various aspect or human endeavour. Therefore,
computerization of accounting function has post as an
indispensable tool by which organizational productivity
could be enhanced. This is achieved by eliminating the cumbersome manual
processing and time wastage associated with manual method of accounting
The computer is of great benefit to everyone. They save
time and drudgery. They enlighten and educate. The list of uses and advantages
of computer seem endless, yet they are not devoid of some shortcoming ranging
from health and environment problem as a result of toxic dumps emanating from
their production to retardation effect on human thinking faculty, making many
In all, when the advantages and disadvantages are compared
one could conclude that, the use of computer is justify.
1.1 PROBLEM STATEMENT
It is generally agreed that output is a, function of
input, The efficiency of any system depends largely on the method of operation
and approach adopted. So considering the potential benefits of computerization
and its expanded advantages over manual operation, one can raise a question if
computerization or operation has impact on the efficiency which task are
carried out. That is, does computerization has impact on the organizational
functions, precisely accounting function?
In addition to the above stated points, development
wireless communication software so that mobile computer can transform itself to
have computer or office computer. There is commercial software available which
will transform a home computer into an office computer or vice-versa.
A familiar but unemphasized fact is that strong
manipulation of the four Maxwell’s equation is what allowed to predict
electromagnetic waves. From this we can summaries that proper use of language
can be a powerful tool to gain information and knowledge about nature.
1.2 OBJECTIVE OF
The objective of this study can conveniently be classified
into two, primarily to fulfil the requirement of the award of Higher National
Diploma (HND) Certificate in Yaba College of Technology while its secondary
objective is to contribute to scientific knowledge. The project will be much
informate as to understanding of computer utilization as a tool in enhancing
efficiency and effective practice of accounting functions to improve
Maintain reliable, up to date technology infrastructure
and position support organisations to meet changing service demands. Function
as a strategic arm of technology to support strategic goal an business plans.
1.3 RELEVANCE OF
The main significance of the study is to enlighten the
companies on benefits associated with proper computerization of their
accounting system. Also, assist those companies that have already computerized
their system in order to improve their efficiency in the accounting system of
such organization. The importance of having the accounting activities of an organization
computerized are numerous and for the limit of this study could be briefly
discuss as follows:
1.3.1 Cost Benefit
The objective of any business organization is to maximize
profit, which could be easily done through cost minimization. The use of computer
has helped a lot in minimizing and/or eliminate completely some cost which are
peculiar to manual process of accounting. Such cost as labour cost which are
reduced drastically as many personnel are not required when computer operations
are adopted. The cost associated with use of ledger as a means of entries and
recording transactions may also be eliminated and so on. Thus, the aggregate of
these reductions in cost boost the profitability and increases shareholder
Inspiration of Employee
Computer usage is the order of the day. Everybody is
yearning to be computer literate. Having’ the employees trained and allowed to
use computer gives them a sense of belonging, and they find themselves fit into
the social norm. This will go an extra mile in motivating them and perform
their normal duty effectively and in efficient manner. In addition, computer
eliminates fatigue, save time and drudgery and make user learn more about their
job requirement as information are easily derivable.
Information processing is common to both manual and
computer base system of accounting, but when the process of these two methods
are compared, obviously the computer‑base system enhance quick and. easier
information processing system. In addition, it eliminates errors associated
with manual processing due to human defect.
1.3.4 System Control
Computerization of accounting activities give room, for
establishing difference type of control on the accounting entries and principle
such control are the application or procedural control and the system control.
The former is developed to ensure completeness, accuracy correctness and
validity of input, while the latter ensure that the activities on the system
development are authorized, approved and amended if necessary.
1.3.5 Centralization of Activities
Computerization also brings about integration of the
operations and accounting system so as to achieve better cohesion in
registration of data and in reporting.
1.3.6 Flow of
Information is easily disseminated in computer base system
and delay in flow of information is highly avoided. Therefore promoting prompt
and easy exchange of information within the accounting department as well as to
and from connected department.
1.3.7 Utilization or Capacity
Optimal utilization of available capacity is achievable
through the application of distributed data processing technique, hence
ensuring efficient use of facilities.
QUESTION AND HYPOTHESIS
For the purpose of this research, the following hypothesis
will be tested.
H0: Computerization of accounting function
improves organisations productivity.
HA: Computerization of accounting function does not
improve organisations productivity.
H0: Introduction of computer increased
efficiency in the accounting activities of an organisation.
HA: Introduction of computer does not increase
efficiency in the accounting activities of an organisation.
1.5 SCOPE AND LIMITATION
This study is intended to know the impact of
computerization of accounting functions on organisational productivity. The
study covers procedure taking in developing a system, the control and
precautions to the system, the various methods to be adopted and how best to
handle computer to ensure efficiency and effective achievement of
The major constraints of this project work are none
availability of sufficient time and material resources required for a more in‑dept
research. However, inspite of all these constraints, an attempt has been, made
to maximize the available resources to come out with tangible findings and
1.6 DEFINITION OF
The need of this section of the project is to enable the
users of the work to understand certain technical terms which need to be
defined and thereby appreciating the value of the whole exercise. The terms
associated with this work are numerous hence effort was made to define some
technical ones here and those not defined were being defined as the course
i. Computer: This is an electronics
device, which on receipt of input is capable of processing it (input) according
to a preset instructions and making the result (output) available when
ii. Instruction: An instruction is a
statement, which defines a basic operation to be performed, identifies the
address of the data to be processed, the location of the data affected by the
operation and the input or output device to be used.
iii. Computer Program: It is a sequence of
simple instructions or statements into which a given problem is reduced and
that which is in a form the computer can understand i.e. in programming
iv. Computer Operator: This is a person
who is responsible for both loading and unloading the input and output devices
and for monitoring the computer during operation.
v. Programmer: This is a person
responsible in writing those set of institutions of which computer acts to
perform or solve a problem.
vi. Data: These are raw facts about the
organisation or individuals that can be processed to obtain useful information.
vii. Information: Refers to processed
data useful for making organisational decisions
viii. Mini‑Computer: This is medium in size
and memory. It hold considerable amount of data which are less than that of
mainframe and supports more than one terminal between 20‑35 terminals within a
large extent on a normal environment.
ix. Micro Computer: These are personal
computer (PC) which are usually single user system. They are suitable for small
organization and individual profession. They are portable and handy to operate
x. Mainframe: They are physically
large system with corresponding large memory capacity. They usually have a wide
variety of attachable peripheral (i.e. input/output devices). Mainframe
computer may be constructed as a single integral devices or a group of machine,
remotely connected but functioning as a set
xi. Hardware: This refers to the
physical units ‘or machines, which make, up computer configuration namely, The
Central Processing Unit (CPU) and the Peripheral Units or Electrical Gargets.
xii. Software: This refers to the
programs, which are processed by the hardware,
xiii. On-Line: This is a situation whereby
input/output devices are connected directly to the computer memory under the
control of the Central Processing Unit (CPU) bringing about a direct
communication between the computer and its various users.
xiv. Off-Line: This is n situation where
input/Output devices are not directly connected to the computer memory. The
communication under this model is usually indirect.
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