THE INFLUENCE OF TECHNOLOGY ON THE EFFICIENCY OF ACCOUNTING PRACTICES IN AN ORGANIZATION
A CASE STUDY OF SPEDAG INTERFREIGHT UGANDA LIMITED
1.1 BACKGROUND
1.1.1 GENERAL BACKGROUND OF THE STUDY
M+R Spedag Group is a leading logistics provider in Switzerland. Spedag interfreight is the premier provider of logistics solutions across the entire East African region.
Spedag Interfreight Uganda Limited is leading Provider of end to end supply chain Management with offices in Kampala Uganda and branches all over Uganda, they specialize in supply chain management, consolidation Services, Distribution Logistics, Project Logistics, Warehousing, Airfreight, Transports, Sea freight Overland and comprehensive Logistics, (www.spedaginterfreight.com).
Technology is fast becoming one of the main drivers of change, posing new strategic challenges (Somuyiwa, 2010). The business environment today has been undergoing unprecedented change and many companies are seeking new ways to stand out from the competition by sustaining their competitive advantage. In today’s highly competitive global marketplace, the pressure on organization’s to find new ways of creating and delivering value to customers is growing stronger.
Technology is today being applied in many organizations in a wide range and operations areas. It has provided new ways of data entry, storage, calculation, distribution and exchange of information both within companies and with customers it has also simplified most of the somehow tedious accounting tasks, (Somuyiwa and Oyesiku, 2010).
It is now commonly accepted that technology and systems provide many benefits to companies, including small enterprises to make them more efficient, effective and competitive (Chapman, et al,2000; Sarkis, et al, 2004; Fink and Disterer, 2006). Many companies conduct business using electronic commerce (e-commerce), whether focusing on business-to-business (B2B) or business-to-consumer (B2C) activities. They realize that easy access to information and communication and the delivery of their products or services are important drivers in developing and sustaining market competitiveness nationally and internationally.
Having a supportive computerised accounting system is very important to maintain the company’s competitiveness and efficiency in accounting operations (Sarkis, et al, 2004). There is a rapid development in the use of technology in the accounting field. The application of computers, internet and information communication systems can be seen in virtually all activities in the accounting department, such as data entry, warehousing, order processing, materials management. It can help companies to achieve competitive advantages by creating efficiency in the accounting tasks and reduces time wastage in the process.
The source of competitive advantage is found in the ability of the organization to differentiate in the eyes of the customer, from its competition and again from operating at lower cost and hence at lower cost and greater profit. Successful companies either have a productivity advantage that gives a lower cost profile or they have a value advantage that gives the product or offers a differential over competitive offerings or a combination of the two. Companies are no longer
Staying competitive simply through focusing on product quality and pricing as customers demand is becoming higher in relation to accounting practices.
This issue directs the companies’ main focus today to address the customer needs in the ever-changing environment. In order to be the winners in the marketplace, timing and superior customer service are becoming the keys to attain competitive advantage for a company.
Spedag interfreight is faced with numerous challenges including consolidation of services, distribution of services, Warehousing of goods for example in most of the goods in warehouses get lost in Spedag warehouse , poor tracking of goods in the course of transportation , Airfreight, Transports, Sea freight Overland apart from that Spedag interfreight experiences high costs in transportation, (www.spedaginterfreight.com).
Accounting practices involves many activities like data entry, accepting of cash withdrawals, cash deposits and most of all record keeping and financial reporting, despite of the numerous investments by Spedag interfreight on technology with a view of achieving quality in its accounting practices there has been numerous challenges with its accounting status basing on this background this study intends to investigate into the influence of technology on accounting practices with specific reference to Spedag interfreight located in Nakawa Industrial Area Plot No.M284.basically because the organisation has operationalized Technology in its accounting system.
1.2 STATEMENT OF THE PROBLEM
According to the current trend of Technological development, is an important tool to enhance efficiency and responsiveness in modern-day accounting practices. The introduction, implementation and usage of technology in companies is usually motivated by an attempt to reduce costs. The objective is to obtain a more efficient accounting practices terms of reduction of errors, improvement in data entry and general improvement in accounting reporting system
Despite of the massive investment in spedag interfreight the company is facing massive accounting challenges including massive fraud and failure to account for some of the funds in the organization, this study therefore intends to investigate into the influence of technology on the efficiency of accounting practices in an organization.
1.3 PURPOSE OF THE STUDY
The study aims at establishing the influence of technology on the efficiency of accounting practices in an organization.
1.4 SPECIFIC OBJECTIVES OF THE STUDY
The overall objectives of this research are;
- To establish the benefits of technology in accounting at Spedag Interfreight Uganda Limited.
- To assess the various forms of Technology being employed in Spedag Interfreight Uganda Limited.
- To establish the relationship between technology and accounting efficiency at Spedag interfreight.
1.5 RESEARCH QUESTIONS
The following research questions shall guide the study;
- What are the benefits of technology in accounting at Spedag Interfreight Uganda Limited?
- What are the various forms of Technology being employed in Spedag Interfreight Uganda Limited?
- What is the relationship between technology and accounting efficiency at Spedag interfreight?
1.6 SCOPE OF THE STUDY
The scope of this study will be divided into subject, geographical and time scope.
1.6.1 SUBJECT SCOPE
The study specifically looked at the impact of ICT on logistics management efficiency in an organisation.
1.6.2 GEOGRAPHICAL SCOPE
The study will be carried out in Kampala district and Spedag Interfreight Uganda Ltd will be the case study. It’s located in Nakawa Industrial Area, Plot M284.
1.6.3 TIME SCOPE
The study will cover the period from February to August of this year (2015).
1.7 SIGNIFICANCE OF THE STUDY
The findings of the study will provide the management of Spedag Interfreight Uganda Limited information on benefits of technology in accounting practices.
The study will help accountants with information on the best forms of technology an organization can use.
The study will also help future researchers with information on the relationship between technology and accounting efficiency at Spedag interfreight.
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