The Effectiveness of Accounting Software in the Preparation of Financial Statements- Case of Mmockmbie Credit Union
CHAPTER ONE
Objectives of the Study
The following are the objectives of this study:
- To investigate the impact of accounting software on the bank payroll financial preparation and reporting in Mmockmbie Credit Union.
- To examine the associated benefits of accounting software on financial reporting in Mmockmbie Credit Union.
- To identify the disadvantages of accounting software on the accounting information system in Mmockmbie Credit Union.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
Computerized Accounting Systems
Computerized accounting. Jennifer VanBaren (Computer based Accounting: 1997) defines computerized accounting as the accounting done with the aid of a computer. It tends to involve dedicated accounting software by digital spreadsheets to keep track of a business’ or clients financial transactions. Computerized accounting involves the use of computers to handle large volume of data with speed, efficiency and accuracy aimed at overcoming the fundamental however, does not mean change in principle, the principle of accounting remains the limitations of manual accounting and hence producing quality and reliable work same with day books ledgers double entry only that the accounting processing is done by computer packages (ACCA, 2007).
Marivic (2009) described a computerized accounting system as a method or scheme by which financial information on business transactions are recorded, organized, summarized, analyzed, interpreted and communicated to stakeholders through the use of computers and computer based systems such as accounting packages.
He emphasized that it’s a mechanized process of facilitating financial information inflows as well as the automation of accounting tasks such as database recording and report generation. Marivic adds that keeping accurate accounting records is a vital part of any organization. Apart from helping it to keep its float financially and legal, it is a requirement of funding bodies or donors. However computerized accounting system involves the use of computers to handle large volume of data with speed, efficiency and accuracy aimed at overcoming fundamental challenges which do not change the principle. The principle of accounting remains the limitations of many accounting and hence producing quality and reliable work.
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 constitutes of individuals or elements that are homogeneous in description.
This study was carried to examine the effectiveness of accounting software in the preparation of financial statement. Mmockmbie Credit Union 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.
TEST OF HYPOTHESIS
Ho: There is no significant impact of accounting software on the banks payroll financial preparation and reporting in Mmockmbie Credit Union.
Ho: There is no significant benefit on the use of accounting software on financial reporting in Mmockmbie Credit Union
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain the effectiveness of accounting software in the preparation of financial state. 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 effectiveness of accounting software in the preparation of financial state
Summary
This study was on the effectiveness of accounting software in the preparation of financial state. Three objectives were raised which included: To investigate the impact of accounting software on the bank payroll financial preparation and reporting in Mmockmbie Credit Union, to examine the associated benefits of accounting software on financial reporting in Mmockmbie Credit Union and to identify the disadvantages of accounting software on the accounting information system in Mmockmbie Credit Union. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from Mmockmbie Credit Union. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
The steady decline in the price of the information technology and the increasing availability of off the shelf‖ accounting software have led many organizations of different sizes to automate all or part of their accounting functions. Therefore, selecting the most appropriate accounting software package that would satisfy an organization’s current and future needs has become an important issue. This research introduced an integrated framework of the main factors that should be considered in the selection process among the competitive accounting software packages. The research would be beneficial for new organizations purchasing accounting software for the first time, and organizations transferring from manual to computerized accounting systems. The way introduced in this research is quite flexible since the maximum points assigned to each determinant and its components are not rigid, and could be differed from one organization to another according to the materiality and significant importance of each determinant to that organization. The way could be also used different size organizations, and it is expected to help organizations in selecting the most appropriate accounting software that would match their current requirements and future expectations for information and financial and non-financial reports.
Recommendation
The new hardware will be require and the equipment are, The user of the system should be given adequate training to cope with the usage of the system.
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