The Role of Computer Based Accounting on the Employability of Accountants in Nigeria. (a Study of Selected Audit Firms in Aba)
CHAPTER ONE
Objective of the study
The objectives of the study are;
- To find out whether computer introduction had any impact on accounting system?
- To find out whether computer introduction made the accountant’s job easier
- To know whether computer introduction provided more accounting information with same staff
- To ascertain whether computer introduction made the storing and retrieval of accounting information faster.
- To find out whether computer introduction made the accountant more efficient.
CHAPTER TWO
REVIEWED OF RELATED LITERATURE
Information Technology
Information technology (IT) is the application of computers and telecommunication to store, retrieve, transmit and manipulate data often in the context of a business or other enterprise. It is also a term that encompasses all forms of technology used to create, store, exchange, and use information in its various forms (business data, voice conversation, still images, motion pictures, multimedia presentation, and other forms, including those not yet conceived. The term is commonly used as a synonym for computers and computer networks, but it also encompasses other information distribution technologies such as television and telephones. Several industries are associated with information technology, including computer hardware, software, electronics, and internet, e-commerce and computer services. Based on the storage and processing technologies employed, it is possible to distinguish four distinct phases of IT development; pre-mechanical(3000BC-1450AD), Mechanical(1450- 1840),electromechanical(1840-1940) and electronic(1940-present).This study focuses on most recent period(electronic) which began in 1940
Accounting Profession
Accounting Profession is considered to be an important profession in the current business world. Onaolapo and Odetayo(2012) identifies accounting as the language of business as it records all transactions of an individual firm or other bodies that can be expressed in monetary terms. Accountants are constantly involved in the decision making process in corporate organization. Accounting Profession contribute to the growth of individual companies, support and sustain non-profit organization, and assist governments in achieving their economic and social objectives and promote financial market performance, through the reporting of and providing assurance on financial information. It is concerned with the measurement, disclosure or provision of assurance about financial information that helps managers, investors, companies and other decision makers make resources allocation decision. Thus the heart of the accounting profession are financial reporting and assurance i. Financial reporting; The provision of financial information about a company to external users that is useful to them in making economic decisions and for assessing the stewardship of the company’s management. ii.Assurance; The expression of an option or conclusion by a professional accountant in public practice which is designed to enhance the confidence of intended users. Every accountant knows that accounting is the language of business. That language has gone through many changes throughout the ages. But through all the changes accounting technology has always played a part in making the accountant’s job just a little easier. As our knowledge of technology increased so has the accountant’s ability to analyze statistical values. Technology advancement has enhanced the accountant’s ability to interpret data efficiently and effectively. He/she now has the ability to interpret the language of business with such ease that the accountant has become a corporation’s most trusted business advisor.
CHAPTER THREE
RESEARCH METHODOLOGY
Different methods of data collection were employed by this study to obtain answers to research questions which were valid and reliable.
RESEARCH METHODS USED
Though survey and historical research methods were used for the collection of primary data, a complementary method, was also used as the former was found to be inadequate for computer applications, because it can only suit “why something happen”. Personal observation was employed in order to enhance the research results by limiting the possible errors. It also enables the Researcher to assess population sample size, attitude of respondents, existing literature on subject matter.
DESCRIPTION OF RESPONDENTS.
The demographic characteristics of the respondents are as follows:
80% male and 20% female 13% of them were below 21 years of age while 87% were non-managerial and 24% were managerial staff. Since the phenomenon under study has a social origin, a combination of closed and open – ended questions were employed to allow respondents build in their respective feeling as a combination of both is usually better.
CHAPTER FOUR
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
DATA ANALYSIS
This chapter deals with the analysis of data collected during the study. There were primary data collected by means of such research instruments as questionnaire and personal interviews. All efforts on data collection were concentrated on the computerized departments of Kenneth Chima Ogbonna & Co and Co. and Toausib Consulting ltd in Aba.
As at date, Kenneth Chima Ogbonna & Co and Co. and Toausib Consulting ltd in Aba involvement with computer based information is quite on the high side, therefore, its management is investing a lot of funds on both computer equipment and computer personnel.
CHAPTER FIVE
5.0 SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATION.
5.1 SUMMARY OF FINDINGS
- Computer has been introduced in all the departments of studies. This introduced bean about ten years ago to process various jobs, such as inventory control, payroll system and General ledger Accounts.
- 45.88% of the respondents according to table vii observed that there was retrenchment exercise in the recent past. The number of people affected by their exercise varies from one department to the other 41.03% of the respondents observed that the number of those affected is between six and ten people (table viii) some (33.33%) said less than five workers were affected while 15.39% agreed that they were over twenty employee affected by the retrenchment exercise. Table vii(a) shows that the estimated total number of employees affected at the time computer was introduced were about three hundred and twenty-two people.
However, persona interview conducted by the researcher on the personnel manager, Heads of the computerized departments, the EDP Managers and the Union Leaders show that only four employees out of these three hundred and twenty-two people were retrenched as a result of introduction of computer to business. While about 89% of the respondents (table vi) agreed that computer was introduced between seven and ten years ago, the view as to when retrenchment took place was divergent. Table x show that 51.28% of the respondents are of the view as to when retrenchment tool place about three years ago while 33.33% of respondents said it took place about ten years ago.
- 84.71% of the people interviewed (respondents) confirmed that there was retraining of existing workers. (Table xi) 41.18% of the respondents said the retraining was on new job while 58.82% of the respondents said the retraining was one existing jobs (table xii). Interview conducted showed that sixty-five members of staff, were actually involved in the training/retraining exercise which was conducted as a result of the introduction of computer.
- It was revealing from table xiii that 43.53% of the respondent agreed that the new employees were employed to work with the computer. 89.19% (table xiv) of the respondent viewed that the new workers in each of the departments were below five in number while 10.91% said they were between six and ten people in number. In all the actual number of new staff employed as a result of introduction of computer to business operations was found to be fifteen. These new employees work as computer engineers, system analysts, programmers and operators.
- It was discovered during the investigation that the computer provided more information. In table xv 8.70% of the respondents agreed that more information comes out from use of computer than manual. Table xiii indicates that these information are presented in a better, concise and easy to assimilate format than the information from manual operation as confirmed by the view of 53.94% (table xx) of the respondents said that the information from the computer is more accurate than information from manual operations. Furthermore, the reliability of computer information relative to manually generated information is put at 92.94% according to respondents (Table xx(a).
Moreover, 90.59% (table xxi) of respondents said that they have better confidence in computer generated information.
- Many of the respondents were of the view that the volume of information generated by use of computer would not have been possible by use of manual operations indicated by 88.23% of people served with written questionnaire Table xxii.
- It was revealed that to achieve the present volume of information extra resources will be needed. 24.70% of the respondents said that more time than used will be required, 47.06% agreed that more personnel would be required while 17.65% said more money will be required.
- The researcher gathered that there was better understanding and co-operation between management of Kenneth Chima Ogbonna & Co. and the trade union executives in the company on the introduction of computer. The personnel department on behalf of management held several meetings and consultants with union executives (members). As a result, the union gave a willing co-operation.
- Economic recession and rough business climate were implicated for decline in employment as shown in table xxiv rather than introduction of computer to business operations in the organisation. Very recently, many business organizations including Kenneth Chima Ogbonna & Co. and Toausib Consulting ltd are all trying to cope with the demands of the structural adjustment programme of the federal government as a step to revamp the economy. Other economic measures indigenization, local sourcing of raw materials and backward integration research and development as well as others have in the short run increased cost of production astronomically. Therefore companies like Kenneth Chima Ogbonna & Co and Toausib Consulting ltd have to control cost by either reducing staff strength or maintaining same level of employment
Conclusion
In conclusion, one may simply say that as technological changes proceed, labour management relations may become more prone to cross fires and industrial unrest.
“It is important to recognise that technological changes set in motion initiatives and dispositions one hand, and reactions and responses on the other hand, which together create scenarios for conflicted labour management relations”.
As computers continues to play an increasingly greater role in all segments of the society, both government and business concerns must begin to move rigorously and attack the human related problems they created before these problems become entrenched and impartible to rectify.
The computer and associated technologies have not only formed to be efficient but also effective as means of processing and managing information.
It has been shown in the course of this study that use of computer for processing clerical tasks implies displacing employees who perform these repetitive and monotonous duties manually. It has equally been shown from this research that the introduction of computer implies a change in method of processing. Introduction of computer does not necessarily imply reduction in employment. The number of employees applicated by introduction of computer to business operation in this study is quite insignificant to conclude otherwise.
Moreover, the four employees implicated would have been retained of only they were productive, capable and willing to learn. On the contrary, existing employees received training to use the new equipment thereby increasing the productivity, awareness knowledge and efficiency in their job areas and other related tasks.
Furthermore, the introduction of computer to business tasks implied new jobs, such as computer engineers, system analysis, programmers, computer operators and data preparation clerks.
Since computer increase the scope of work performed, total employment level in the economy may not have changed considerably.
The jobs created by computer application are probably off set by jobs displaced by the computers. (i.e. a sort of substitution effect).
Recommendation
- Qualified computer personnel should be employed to manage the areas of computer operations.
- Existing staff should be retrained to effectively handle the computers, interpret and use the information thereby generated for better overall management.
- The computers should be maintained constantly by qualified engineers and standardized from time to time to avoid computer down time and malfunctions.
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