Assessing the Impact of Accounting Software in the Processing of Accounting Information

Assessing the Impact of Accounting Software in the Processing of Accounting Information

Chapter One

Objectives of the Study

The objectives of this study include but not limited to;

1. To assess the relationship between accounting software and accounting information.
2. To identify the influence of accounting software in the gathering of accounting information.
3. To know the significant impact of accounting software in the processing of accounting information of an organization.
4. To identify the setbacks of accounting software and to proffer suggestible solutions.

CHAPTER TWO

LITERATURE REVIEW

 INTRODUCTION

Our focus in this chapter is to critically examine relevant literature that would assist in explaining the research problem and furthermore recognize the efforts of scholars who had previously contributed immensely to similar research. The chapter intends to deepen the understanding of the study and close the perceived gaps.

CONCEPTUAL FRAMEWORK

Accounting

Accounting is the art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least of a financial character and interpreting the results, thereof (AICPA, 1989). Accounting has evolved from simple book-keeping. Also defined as the science of recording, interpreting financial records, accounting has become the often and on language of business (Okolo, 1980). It has emerged an indispensable tool of business. It is this unique significance of accounting that has placed the accountant in the centre of attraction for all stakeholders in any organization whatsoever. Accounting as an information system, and auditing as a monitor or “check” on the accuracy of the accounting information system, provide enormous potential to establish accountability and detect corrupt activities (Kimbro, 2002, p.336). Accounting has been considered to be an essential instrument in the privatization process (United Nations, 1993) and in the management of privatized entities (Tsamenyi et al., 2010). The accounting concept of fair 7 value is described as a rational and unbiased estimate of the potential market price, which reflects and reinforces a “faithful representation of reality” and enhances market efficiency in the global economy through better diffusion of real-time information on objective asset and liability valuations (Boyer, 2007). In line with the concept of fair value accounting, financial regulatory bodies in both developed and developing countries have therefore required that assets and liabilities be valued using fair value (FASB, 2006; Obuh, 2012). However, some have argued that accounting numbers, techniques and practices have become technologies for legitimating the privatisation of SOEs in developed (Sikka, 2015; McSweeney, 2009) and developing countries (Morales et al., 2014; Zhang et al., 2012; Rahaman et al., 2007; Uddin & Hopper, 2003).

Generally Accepted Accounting Principles (GAAPs)

Generally Accepted Accounting Principles (GAAPs) are a basic set of rules that are supposed to be followed across all stages of accounting. Following the enlargement of business world, stakeholders in business establishments grew and it became necessary to standardize the system of accounting so that facts can be recognized and evaluated in an aligned procedure. Unlike the known sole proprietorship and partnership businesses, where the users of accounting information are limited and in most cases involved in the day-to-day activities of the business, the evolution of modern business demands a predetermined accounting system to serve the interests of the various stakeholders who may not be part of the management. Upon this obvious need, a set of generally accepted accounting principles (GAAPs) is developed.

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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.

POPULATION OF THE STUDY

According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitute of individuals or elements that are homogeneous in description.

This study was carried out to the impact of accounting software in the processing of accounting information using Small Scale Business in FCT Abuja. Selected Small and Meduim Scale Business in FCT Abuja form the population of the study.

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

 SUMMARY

The main focus of this study is to assessing the impact of accounting software in the processing of accounting information using selected SME’s in Abuja as case study. Specifically the study assess the relationship between accounting software and accounting information. it identified the influence of accounting software in the gathering of accounting information. it found out the significant impact of accounting software in the processing of accounting information of an organization. it  identified the set-backs of accounting software.

The study adopted the survey research design and randomly enrolled participants using the convenience sampling technique to choose the sample size in the study. A total of 77 responses were validated from the enrolled participants where all respondent are staff of the selected SME’s in Abuja. Self-constructed and validated questionnaire was used for data collection. The collected and validated questionnaires were analyzed using frequency tables and percentage. Hypothesis Test was conducted using Chi-Square statistical tool (SPSS v.2.3)

CONCLUSION

Findings from the study showed a significant increasing of accounting software popularity and that fact has caused sufficient diversification in computer accounting programs. And it’s becoming difficult to decide which one to choose. There was grouping of accounting software programs of the most famous world producers using affordable and easy-to-use approaches, listed their advantages and disadvantages, analyzed price policy parameters. There were indicated items to keep in mind when selecting accounting software for companies: special features (accounts receivable and accounts payable tools, track inventory, time tracking, project management, payroll or advanced reporting capabilities), usability (desktop software, cloud software or mobile version and number of users) and costs (inexpensive, average price or expensive with extra features). Also research reports about some risks which connect with storage accounting date and information. As recommendation there are some offers for each type of accounting software program – to give detail explanation on its security level, use multi-business support, find providers with additional services and possible training programs.

 RECOMMENDATION

The study recommends amongst others that

1. SMEs should improve their accounting system in order to generate quality, reliable and timely accounting information.
2. Owners of SMEs should integrate accounting information system in their decision processes
3. SMEs should endeavor to consult accountants regularly in order to be able to maintain high and generally acceptable accounting practices.
4. Accounting training programmes for SMEs should be organized by the Lagos State Ministry of Trade, Commerce and Industry for those who do not know the importance of maintaining accounting records to come to grips with it.
5. Government should stipulate the minimum number of books to be kept by all SMEs that meet certain criteria which certifies them to operate in Nigeria.
6. SMEs should ensure that the cost of acquiring AIS does not outweigh the benefits the company would gain from using them.

REFERENCE

• Accounting Software.   (2015).  In  Financial  Analysis Software  |  Financial  Analysis |  FinancialStatements  |  Current Ratio  |  Financial  Ratio  |  ReadyRatios.com.  Retrieved  March  10,2015, fromhttp://www.readyratios.com/reference/software/accounting_software.html
• Ali, A., Rahman, M. S. A., & Ismail, W. N. S. W. (2012). Predicting Continuance Intention to Use Accounting Information Systems among SMEs in Terengganu, Malaysia. International Journal of Economics and Management, 6(2), 295 – 320.
• Amesur,  A.   (2006).  Directors’  Briefing:   Using   Accounting   Software.   (ISSN   1369   1996.).Retrieved from  Business  Hotline  Publications   Ltd,  240a  Lavender  Hill   London  SW111LE website: http://www.businesshotlinepublications.co.uk
• Ariyo, D. (2004). Small Firms are the Backbone of the Nigerian Economy. Retrieved April, 23^rd, 2019.
• Baryamureeba, V.  et al.  (2008).  Status  of  Software  Usability  in  Uganda. Kampala:  MakerereUniversity.
• Dandago, K. I., & Rufai, A. S. (2014). Information technology and accounting information system in the nigerian banking industry. Asian Economic and Financial Review, 4(5), 655-670.
• Eamonn,  R.  (2012).  The  Evolution of  Accounting  Software: Past,  Present   and Future.  GAAAccounting:   The   Journal   of   the   Global   Accounting   Alliance.   Retrieved   fromhttp://www.gaaaccounting.com/the-evolution-of-accounting-software-past-present-and-future/#sthash.CLqBeq4q.dpuf
• Eniola, A. A. & Ektebang, H. (2014). SME firms performance in Nigeria: Competitive advantage and its impact. International Journal of Research Studies in Management, 3(2), 75-86

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