TABLE OF CONTENTS
1.1 BACKGROUND OF THE STUDY.. 1
1.2 STATEMENT OF THE PROBLEM… 3
1.3.1 OBJECTIVES OF THE STUDY.. 4
1.6 SIGNIFICANCE OF THE STUDY.. 5
1.7 JUSTIFIATION OF THE STUDY.. 5
2.1 The role of computerized accounting system on service delivery in financial institutions. 8
- The challenges associated with the use of computerized accounting system in financial institutions 8
2.2 Relationship between computerized accounting and service delivery in financial institutions. 9
3.4 Sources of data and data collection tools. 12
3.4.2 Data collection procedure. 13
3.6 Limitations of the Study. 13
PRESENTATION, INTTERPRETATION AND DISCUSSION.. 14
4.1 Characteristics of the respondents. 14
SUMMARY RECOMMENDATIONS AND CONCLUSIONS. 23
5.4 Areas for further research. 24
ABSTRACT
The study looked at “Computerized Accounting Systems and service delivery in Financial Institutions- a study of bank of Africa Uganda main branch”. The purpose was to find out whether application of Computerized Accounting Systems supersedes that of manual Accounting system and that if Computerized Accounting Systems enhance higher turnover and profitability and also whether a Computerized Accounting System is an effective means in terms of service delivery.
The study population was 55 people who were members and staff of Bank Of Africa Uganda and the sample size calculated was 35 selected randomly.
The researcher also made use of primary methods of data collection which included questionnaires and scheduled interviews. Also the secondary method of data collection used gotten from official documents of BOA, various research work on Computerized accounting system, accounting journals, textbooks and Uganda Christian University Library. Now based on these, the researcher recommended that Financial Institutions channel most of their resources in training Accountants personnel in Computerized Accounting System related technology such as I.C.T to boost service delivery.
According to the findings, it was also concluded that Computerized Accounting System contribute much to the development of the organization whereby all revenues and accountabilities are provided by the data stored.
Basing on the study results, also the following recommendations were made; Organizations should employ Computerized Accounting System for accounting work and also execution of accounting work.
CHAPTER ONE
1.0 INTRODUCTION
This is basically to discuss the background of the study, statement of the problem, main objective of the study, the specific objectives of the study, the research questions, scope of the study, significance of the study, the limitations of the study, and the solutions to the limitations of the study.
1.1 BACKGROUND OF THE STUDY
BOA is a registered limited liability company and a Bank of Uganda (BOU) regulated financial institution. It is a Non Government Organization (NGO) in Uganda whose head office is located at Jinja road plot 45 Kampala. BOA is also a member of the Bank of Africa Group and the Group operates through a network of 11 commercial Banks in Africa and has been in existence since 1982.
In addition to commercial Banking activities, the institution is also active in the fields of insurance, mortgage, leasing and stock brokerage.
The Bank has had an impact on the social scene through a number of corporate social responsibilities including;
- Support to displaced people in northern Uganda
- Support to flood victims in Eastern Uganda
In 2013, the Bank of Africa Uganda ltd launched her inaugural CRS flagship in support of sickle cell treatment and it is still continuing in this commitment and hopes to make it annual.
In order for bank of Africa to achieve its objectives, it has to employ an effective and efficient accounting system with computerized accounting systems.
Accounting is an intrinsic part of any business, large or small. Owners and their interested parties always want to know whether they are making profits or not. Many small businesses do their accounting manually and others have considered having computerized accounting systems since accounting software is so affordable these days for example SPSS, STATA, IGOR,EXCEL and many other accounting systems. Manual accounting systems and computerized accounting systems perform basically the same processes, the difference laying in the mechanics of the process for example their speed, cost, back up of transactions, accuracy of operation and perhaps most importantly is the ability to see the real time state of company’s financial position.
Since the advent stewardship accounting, maintaining, preparation and presentation of accounts to stakeholders through financial reports for efficiency and effectiveness has become paramount in all financial institutions. This is the value of an accurate and efficient accounting system demonstrated in its ability to aid all transaction activities especially by contributing to the service delivery improvement, reducing on costs, and eliminating resource wastage and thus computerized accounting systems have been adopted as the way to go.
In Uganda, prior to introduction of computerized accounting systems, the manual systems were used but as businesses grew and the number of transactions increased, the manual methods of keeping and maintaining records was found to be quite cumbersome and un manageable. Coupled with technology changes which has dramatically changed the accounting profession, one response to this change being development of accounting programs that emphasize accounting information [Stron, et al 2006] which advancements have been followed with great desire of several financial institutions to acquire and implement up to date computerized accounting systems Bank Of Africa being no by stander.
According to the comparative survey which was conducted which was conducted by Indira [2008], the results indicated that Financial Institutions have greatly improved on service delivery especially with the switch to Computerized Accounting Systems. Computerized accounting systems are software programs that gather various accounting information related to sales, purchases, receivables, Computerized Accounting Systems disbursements, and payroll.[Islam 2010].
According to Fowzia and Nasrin [2011], computerized accounting systems are considered as important organizational mechanisms that are critical for effectiveness of decision management and control in the organization especially when 9information provided is used effectively I decision making process by users.
Hussein [2004], puts it that the definition of accounting information systems can be deduced that the system involves collected financial data which comes with benefits of speed in carrying out routine transaction, timeliness, quick analysis accuracy and reporting.
However, even with the benefits that come with Computerized Accounting System, many financial institutions like BOA have not enjoyed benefits and have had continued Computerized Accounting Systems of misappropriations, inaccuracy due to interruptions or failure in the system which has left questions of computerization reliability in question as per the European Union Audit of 6th March.
1.2 STATEMENT OF THE PROBLEM
Prior to technological advancement, manual accounting system were used which was often erroneous, time consuming and quite cumbersome filled with a lot of paper work. Advancement over the years has enabled computerization of accounting systems. Now confronted with the fierce competition and accounting challenges, today’s Financial Institutions have come up with several strategies ranging from improvement on customer care, advertisement, improvement on technology and also application of other means in order to improve on service delivery and achieve a competitive advantage but all these have left service delivery still demanding. There has also been an increase in accounting challenges associated with service delivery hence killing most businesses that fall victims of this circumstance. It is upon this background that financial institutions have to also go ahead and apply computerized accounting systems in order to be able to survive such competition and challenges and for the purposes of this research, Computerized Accounting Systems shall be discussed. The motivating factor for adoption of Computerized Accounting Systems in Financial Institutions is because there has been a positive link identified between the use of computerized accounting systems and service delivery [Reid and Smith 2002].
1.3 PURPOSE OF THE STUDY
The study aimed at finding out the role of computerized accounting systems on service delivery in financial institutions.
1.3.1 OBJECTIVES OF THE STUDY
- i) To find out the role of computerized accounting systems on service delivery in financial institutions.
- ii) To find out the challenges associated with the use of Computerized accounting Systems in financial institutions.
- iii) To find out the relationship between computerized accounting systems and service delivery in financial institutions
1.4 RESEARCH QUESTIONS
- i) How has Computerized Accounting Systems improved on efficiency in financial institutions?
- ii) What are the challenges associated with the application of computerized accounting systems in financial institution?
- iii) What is the relationship between computerized accounting systems and service delivery in financial institutions?
1.5 SCOPE OF THESTUDY
1.5.1 Geographical scope
The research was carried out at the Bank of Africa Uganda Headquarters [BOA] located at Jinja road Kampala plot 45, this was because of the availability of the required data and a good sample size and also the convenience of obtaining data about the topic of study and accessibility is easy.
1.5.2 Content scope
The research was mainly based on two variables and these are computerized accounting system which is comprised of definitions, components, software, benefits, limitations and service delivery.
1.5.3 Time scope
The study was based on information about variables ranging from 2000 to 2015.The researcher was able to use the information to come up with a coherent information from respondents and literature that was relevant to the study. The research took three months effective 1st January to April 2015
1.6 SIGNIFICANCE OF THE STUDY
The findings of the study will be significant in the following ways;
The study will further identify the weakness in the existing knowledge of computerized accounting systems
The study will contribute and provide a reference to the ongoing research by scholars and financial institutions to improve on service delivery through the application of computerized accounting systems
It will identify opportunities for real gain in the knowledge base and raise issues and questions about the implications of computerized accounting systems on service delivery.
The study will also provide researchers, scholars and other interested parties with a direction for improvement in design and implementation of computerized accounting systems.
1.7 JUSTIFIATION OF THE STUDY
Little attention seems to have been put to the role of computerized accounting systems towards service delivery and yet from the past experience, it shows that the financial institutions have greatly improved on their service delivery following the introduction of computerized accounting systems. Reuters [2005] is in agreement with the above idea.[www.wrbrpapers.com/stastic/ documents]. It is therefore upon this background that the research should be carried out to create awareness about the role of computerized accounting systems in relation to service delivery
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