A Evaluation of Effective Financial Management in a Computerized Accounting System
CHAPTER ONE
OBJECTIVE OF THE STUDY
The need to minimized fraud and improve service to customers is one of the primary important today, due to the increasing number of new generation banks therefore, the main objectives of this study is to asses:
- The effectiveness of financial control in a computerized environment
- Whether computerization has minimized the level of fraud and error in banking sectors.
- Whether computerization has improved the profitability performance of the organization.
- Whether it has increase speed in attending to customers needs and finally, effort will be made to recommend feasible banking organization.
CHAPTER TWO
LITERATURE REVIEW
Accounting systems
Accounting system as defined by business dictionary.com states as “an organised set of manual and computerized accounting methods, procedures, and controls established to gather, record, classify, analyse, summarize, interpret, and present accurate and timely financial data for management decisions” (Business dictionary. com, Quoted 10.12 2012) Every organisation must operate accounting system due to the fact that it is generally recommended for companies to report on its financial position to the stakeholders for better decision-making and other policy implementations. The decision to choose whether a company would operate manual or computerized accounting system depends on the company itself.
The Accounting systems used in the Bank
Frank wood (1996) stated that a computerized accounting system is a combination of people, procedures, facilities and controls intended to maintain essential channels of communication and to alert management and other stakeholders about significant internal and external events. In contrast according to Meigs,(1996) an accounting system consist of methods, people, procedures and devices use by an entity to keep track of its financial transactions and to provide information for decision making . It helps to integrate information in order to cope up with reports in terms of balance sheets, income statements, and cash flow statements so that management and other stakeholders who are interested in them can make use of them.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to evaluation of effective financial management in a computerized accounting system. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of effective financial management in a computerized accounting system
Summary
This study was on evaluation of effective financial management in a computerized accounting system. Four objectives were raised which included; The effectiveness of financial control in a computerized environment, Whether computerization has minimized the level of fraud and error in banking sectors, Whether computerization has improved the profitability performance of the organization and Whether it has increase speed in attending to customers’ needs and finally, effort will be made to recommend feasible banking organization. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from selected staffs of first bank, Lagos state. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
Computer technology is here to stay. Since its upcoming in the global scene of all forms of human activities especially in the banking sector, rapid transformations have been experienced. Tradition and all upcoming small banking institutions’ respective stakeholders response to this modern computer are in an unpredictable environment in developing countries has of recent been to adopt and cope with the changes so as to improve on the organizational performance of their institutions. According to the findings established by research, the introduction and implementation of these computer based systems is very costly in the short run. However in the long run, computerized systems in a bank will create efficiency, accuracy, convenience, cut down work overloads thus cutting down all operational and managerial costs leading to improve performance. There is no doubt therefore to conclude that computerization has greatly improved on the organizational performance of first bank
Recommendation
- Computer technology in the banking sector is here to stay. Traditional and upcoming small banks that have not yet responded to this must accept this fact and take relevant action towards computerization. It’s therefore sought important by the researcher that the following recommendations be studied and followed by respective people at management levels in the banking sector.
- Banking management should always invest in research to find out new developments in computer technology such as new banking packages and if discovered be established internally as they could value on service delivery. • Calculated investment in computerization should be emphasized so as not incur too much costs that could put the bank’s liquidity at risk.
- Routine upgrading of these systems should be emphasized, as they are very sophisticated and delicate.
- Through training has been in place, it was found out that it was not adequate. So adequacy in training should be put in place for all stakeholders in the bank including clients like on use of ATM to reduce on card retention. • Computer security should be observed and intrusion to avoid as puts the banking at high risk.
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