Accounting Information System as a Means of Enhancing Financial Management of Transport Company (A Case Study of Nigeria Railway Commission)
Chapter One
OBJECTIVES OF THE STUDY
Bearing in mind the above-mentioned problem study is aimed at finding out among other things such as:-
- The organization of the accounting department in Nigerian Railway Corporation with a particular interest in the eastern division of the corporation and how the accounts department contributes to the achievement of overall goals for the corporation.
- Whether the accounting information is one of the effective management tools in the railway corporation.
- Whether the accountants in the corporation adequately perform their duties in conformity with the statement of accounting standards (SAS)
4. In where the tools of the accounts department to the performance of the individual workers in terms of their output.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
INTRODUCTION
The study of Esmeray (2016) aimed at identifying the impact of the use of accounting information systems on the financial performance of small and medium-sized companies in Turkey. To achieve the study’s objective, the analytical descriptive approach was applied by designing a questionnaire and distributing it over the study sample which consisted of 60 companies in the city of Qaisariya. The results of the study showed a statistically significant positive relationship between the use of accounting information systems and the growth rate in sales, returns and customer’s number. The study of Nwinee, et- al (2016) aimed at identifying the impact of the use of accounting information systems on the organizational effectiveness of small and medium-sized companies in Nigeria. To achieve the study’s objective, the analytical descriptive approach was followed by designing a questionnaire and distributing it over the study sample which consisted of 156 employees of small and medium-sized companies in Port Harcourt city. The results of the study showed that the use of accounting information systems supports the effectiveness of organizations and increases the ability to control costs. The study of Patel (2015) examined the impact of accounting information systems on companies’ profitability. The study was based on the theoretical analytical approach to reach the results by reviewing the previous studies and the concept of accounting information systems, the quality of the accounting information systems, and the nature of the relationship between accounting information systems and the profitability of companies and decision making. The results showed that the there is an impact of accounting information systems on the profitability of companies and decision-making, also it was found that the accounting information systems contribute to provide the necessary information to take financial and economic decisions. Hezabr & Qatanani (2015) studied the impact of accounting information systems on improving the value chain in companies in the Kingdom of Bahrain. To achieve the study’s objective, the analytical descriptive approach was applied by designing a questionnaire and distributing it over the study sample which consisted of 60 employees in 23 industrial companies. The results of the study indicate that there is a lack in the availability of the accounting information systems’ basic components. In addition, there is a lack in the accounting information quality needed to improve the value chain for the business organizations in the public industrial shareholding companies in the Kingdom of Bahrain. As for the contribution of accounting information systems in value improving was found to be weak. The objective of Rapina’s study (2014) was to identify the factors affecting the quality of accounting information systems in Indonesia. The study sample consisted of a group of accountants working in 33 cooperative institutions in Bandung City, where a questionnaire was distributed to measure the information needed to serve the purposes of the study. The results showed that the commitment of management, organizational culture and organizational structure has a great impact on the quality of accounting information systems moreover, the quality of the accounting information system has effectson the quality of accounting information. The study of Moqbel (2014) sought to demonstrate the impact of accounting information systems on e-commerce in Jordan. To achieve the objective of the study, the analytical descriptive approach was applied by designing a questionnaire and distributing it over the study sample which consisted of 75 financial managers working in 25 service companies. The results of the study showed that there is a statistical significant positive effect of accounting information systems on e-commerce in service companies in Jordan. The study of Harash et al (2014) examined the impact of accounting information systems on small and medium-sized companies’ performance in Iraq. This study was based on the theoretical analytical method in reaching the results by reviewing the previous studies, the concept of accounting information systems and the nature of the performance of small and medium-sized companies. The results showed that there is an impact for the accounting information systems, represented by their characteristics(reliability, importance, and timing), on the performance of small and medium-sized companies in Iraq. Rachmawati and Lasniroha (2014) examined the impact of administrative accounting information systems, the quality of accounting information management and the quality of services provided over the users’ satisfaction and their effect on Indonesia’s decision-making process. The study sample was composed of the staff of the State Bank in Bandung City, where a questionnaire was distributed to measure the information needed to serve the purposes of the study. The results of the study indicated that there is an impact for the quality of the administrative accounting information systems and the quality of the services provided on the decision-making process with a percentage of 62%. Abdullah’s (2013) study was conducted to identify the impact of the use of accounting information systems on the quality of the financial statements in the Income and Sales Tax Department in Jordan. In order to achieve the objective of the study, the analytical descriptive approach was applied by designing a questionnaire and distributing it over the study sample which consisted of 50 accountants from the Income and Sales Tax Department in Amman Governorate.
CHAPTER THREE
RESEARCH METHODOLOGY
Research design
The researcher used descriptive research survey design in building up this project work the choice of this research design was considered appropriate because of its advantages of identifying attributes of a large population from a group of individuals. The design was suitable for the study as the study sought accounting information system as a means of enhancing financial management of transport company
Sources of data collection
Data were collected from two main sources namely:
(i)Primary source and
(ii)Secondary source
Primary source:
These are materials of statistical investigation which were collected by the research for a particular purpose. They can be obtained through a survey, observation questionnaire or as experiment; the researcher has adopted the questionnaire method for this study.
Secondary source:
These are data from textbook Journal handset etc. they arise as byproducts of the same other purposes. Example administration, various other unpublished works and write ups were also used.
Population of the study
Population of a study is a group of persons or aggregate items, things the researcher is interested in getting information accounting information system as a means of enhancing financial management of transport company. 200 staff of Nigeria railway commission, Enugu was selected randomly by the researcher as the population of the study.
CHAPTER FOUR
PRESENTATION ANALYSIS INTERPRETATION OF DATA
Introduction
Efforts will be made at this stage to present, analyze and interpret the data collected during the field survey. This presentation will be based on the responses from the completed questionnaires. The result of this exercise will be summarized in tabular forms for easy references and analysis. It will also show answers to questions relating to the research questions for this research study. The researcher employed simple percentage in the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain accounting information system as a means of enhancing financial management of transport company. 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 accounting information system as a means of enhancing financial management of transport company
Summary
This study was on accounting information system as a means of enhancing financial management of transport company. Three objectives were raised which included: The organization of accounting department in Nigerian Railway Corporation with particular interest in the eastern division of the corporation and how the accounts department contributes to the achievement of overall goals for the corporation, Whether the accounting information is actually one of the effective management tools in the railway corporation, Whether the accountants in the corporation adequately perform their duties in conformity with the statement of accounting standards (SAS) and In where the tools of the accounts department to the performance of the individual workers in term of their output. In line with these objectives, two research hypotheses were formulated and two null hypotheses were posited. The total population for the study is 200 staff of Nigeria railway commission. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made human resource managers, accountants, senior staff and junior staff were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies
Conclusion
Accounting information system had been widely used by many organizations to automate and integrate their business operations, efficiency and competitive advantages. This review focuses on the effect of accounting information system (AIS) on financial performance of firms. It is envisaged that the information technology (IT) component of accounting information system is one of the biggest impact of AIS to firms as it enables firms to track, record and produce financial and accounting reports with much ease. Paper ledgers, manual spreadsheets and hand-written financial statements have all been translated into computer systems that can quickly present individual transactions into financial reports. From the empirical works reviewed, it is evident that majority of the studies employed a survey research design to examine the relationship between accounting information system and firm performance
Recommendation
Management should integrate this important tool of analysis in their accounting information. Following the responses of 35% of the total respondent that inadequate accounting facilities and obsolescence machine together with shortage of accounting personnel to compete the assignment are the major problem of their accounting system.
References
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