THE ROLE OF COMPUTERISED ACCOUNTING SYSTEMS ON ORGANIZATIONAL PERFORMANCE

CHAPTER ONE

1.0 Introduction

The study wills specifically present two variables the independent variable which will be computerised accounting and dependent variable which will be organizational performance.

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.

Computer Technology covers vast areas of technologies such as mobile and wireless technology, telecommunications, software development, security. Intelligent systems etc.  Computer technology has had a huge impact on industries, the community in general and our daily lives. Computer technology can be applied to many fields like accounting. One of the emerging applications in recent years is in accounting field which has led to the emergency of the term computerised accounting, (Kwok Hung Lau and Haibo Huang 2012). Computerised accounting 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 customer satisfaction therefore computing in accounting is inevitable in organizations , according to Lysons, (2012) it is essential to for organizations to adopt the use of computers in accounting inorder to enhance organizational performance in the globalised world.

This chapter will present the background of the study, the statement of the problem, purpose of the study, objectives of the study, research questions and the significance of the study.

1.1 Background

1.1.1 General background of the study

Computer Technology covers vast areas of organizational activities and is used in an organization in many forms such as mobile and wireless technology, telecommunications, software development, security, Printing and photocopying, intelligent systems (Huang et al, 2012).

Technological advancement has had a huge impact on industries, organizations, and the community in general and our daily lives technology has many applications in an organization can be applied to many fields (Huang et al, 2012).

Spedag is a worldwide logistics service provider with an international presence in different continents like in Europe it has operations in Switzerland and France while in Asia it’s found in countries like china, Hongkong, Indonesia, Singapore, Taiwan, Thailand, Malaysia, Vietnam despite of its wide presence it also has operation in Africa like in Uganda, Kenya and Tanzania. Spedag East Africa amalgamated with Interfreight East Africa on 1^st September 2011 and under the name of Spedag Interfreight and has become one of the largest logistics suppliers in East Africa, (New vision, September, 2011).

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), in Kampala Spedag interfreight located at Nakawa Industrial Area Plot No.M284.

Spedag interfreight is faced with numerous accounting challenges including mismatch of the records in warehouses, un coordinated data of including un correlating data in air freight, according to (www.spedaginterfreight.com), the institution is facing an increasingly high financial costs in its transportation services and most of these costs are un budgeted and unplanned for, apart from that the management of Spedag interfreight are becoming increasing weary of the increased misplacement of the financial  records from most of its up country branches like in  Kasese, Malaba, Enttebbe, and Jinja, this has continued to pose many questions to the management at to what could be the cause to most of the challenges in the accounting practice in that organization.

Computers are 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 computer systems provide many benefits to companies, including small enterprises to make them more efficient, effective and competitive (Fink and Disterer, 2012). 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, 2014). 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.

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 the role of computerised accounting systems on organizational performance, with specific reference to Spedag interfreight located in Nakawa Industrial Area Plot No.M284.basically because the organisation has operationalized computers in its accounting system.

1.2 Statement of the problem

According to the current trend of computer advancement, computer is an important tool to enhance efficiency and responsiveness in modern-day accounting practices. The introduction, implementation and usage of computer technology in companies are usually motivated by an attempt to reduce costs (Oyesiku, 2010).

The objective is to obtain a more efficient accounting practice in terms of reduction of errors, improvement in data entry and general improvement in accounting reporting system, this helps to enable an organization to be efficient and competitive (Wit and Van  2012).

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 role of computerised accounting systems on organizational performance.

1.3 Purpose of the study

The study aims at establishing the role of computerised accounting systems on organizational performance.

1.4 Specific objectives of the study

The overall objectives of this research are;

1. To establish the benefits of computer systems in accounting at Spedag Interfreight Uganda Limited.
2. To assess the various forms of computers system being employed in Spedag Interfreight Uganda Limited.

• To establish the relationship between computer systems and accounting efficiency at Spedag interfreight.

1.5 Research questions

The following research questions shall guide the study;

1. What are the benefits of computer systems in accounting at Spedag Interfreight Uganda Limited?
2. What are the various forms of computers system being employed in Spedag Interfreight Uganda Limited?

• What is the relationship between computer system 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 will specifically look at the role of computerised accounting on organizational performance.

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 take a period of 6 months which will be specifically from March to August 2017 and shall consider the documentary records for two years from 2013 to 2016. The researcher will base on those records to draw general conclusion for the study.

1.7 Significance of the study

1. The findings of the study will provide the management of Spedag Interfreight Uganda Limited information on benefits of computers systems in accounting practices.
2. The study will help accountants with information on the best forms of computer systems an organization can use.

• The study will also help future researchers with information on the relationship between computer systems and accounting efficiency at Spedag interfreight.

CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction

This chapter presents an overview of the existing literature based on other writers’ opinions, findings, and viewpoints on the influence of technology on the efficiency of accounting practices in an organization.

2.1 Benefits of computer systems in accounting

Time: Paper works are involved in manual accounting; all the accounting activities are carried out on paper manually and obviously, it takes much time and resources for the average business organization and most especially, a financial institution that still uses the manual system. Computerized accounting saves a lot of time where in, the employee has to record the transactions and all the other calculations would be carried out by the software either automatically or by a request. Magdalene M, (2010)

Accuracy: I also agree with Magdalene M, (2010) again, that computerized accounting is not only speedy but also accurate. With a computer being used to collect data and change it into meaningful information that is used by management to make timely and effective decisions, the computer carries out the entire data processing through classifying, sorting, calculating, summarizing the data and production of reports, as stated by Birungi (2011). This entire process helps to minimize the risk of miscalculations and other human errors that could have emerged as a result of manual data processing.

Security: With the manual accounting system, every record is on paper and in case of any uncertainties such as heavy floods, landslides and fire outbreaks, the useful data may all be lost, and yet with the computerized accounting system and the introduction of internet and networks in the information technology world, an easy backup and restoration system as well as the use of passwords to avoid unauthorized parties from accessing the data, keeps the information secure Birungi (2011)..

Cost : Some arguments may stress that manual accounting can be handled with cheap work force and resources and that it is reliable as it is done manually with minutes of observations Van weele ,2005). However, the level of competition in the business world of today is tight and even growing tighter day by day and if a business with an aim of being successful does not consider the aspect of time especially as far as decision making is concerned, then that business stands to lose. Computerized accounting in this case may be more costly than manual accounting in terms of cheap work force but its output actually overweighs its cost.

Level of output : Magdalene M, (2010) also argues that computerized accounting can actually handle thousands of calculations simultaneously and accurately as compared to manual accounting where by transactions are handled one at a time and even needs much time to do that as well as being characterized by human errors and mistakes in calculations which may eventually affect the final output of information and hinder effective decision making.

2.2 Various forms of computers system being employed

Electronic Data Interchange; This is an exciting development in the 1980s. EDI is a technique based on agreed standards which facilitates business transactions in a standardized electronic form in an automated manner directly from a computer application in one organization to an application in another organization. The growth of microcomputer usage in accounting systems is to direct electronic transmission of data and standard business forms between the buying organization and its suppliers.. Electronic Data Interchange and the internet have made flow and exchange of information once an EDI system is in place and functioning properly, it produces a number of clear-cut operating benefits for the buying firm. An obvious reduction in paperwork and related administrative contributes noticeably to increased productivity. Because data is transmitted directly between computers, accuracy of the data throughout the process typically increased. For the same reason, more complete and faster feedback of order status information is possible, (Chaffey, 2012).

According to Bialy et al, 2006 technological progression necessitates that organizations should have formulated plans to handle development for example in the development of EDI as one of the information technologies used in supporting accounting activities. It is imperative that purchasing has an appropriate supplier who can jointly develop and use this technology.

In addition to the above, there has been different views concerning the integration of materials and information flows, both internally and externally for example; MRP, MRP II and integrated information systems such as EDI and supply chain concepts such as value streams.

At the same time, organizations can successfully run a home shopping and delivery systems for consumers over the internet. Within these businesses, intranets are put in place to enable information be shared between stores and this facilitates communication across the business making the internal operations become much more efficient as a result. For example, by capturing customer demand data sooner, better utilization of production and transport capacity achieved through proper planning and scheduling, (Baily, 2011).

According to Preben Koch, head of ICT development at vital, Forsaking USA, explains “We needed to ensure cost-effective growth of the business by making our processes fast and accurate, using technology to save duplication of effort. Our administration system was out-dated. The long and complex forms required several steps of validation and this slowed up the process of handling cases.”

Koch still explains that by use of TIBCOS BPM suite that TIBCO software developed for vital paper mark and staff have been reduced by 25% and 35% while maintaining its level of service and also that case handlers now have instant access to client data  on screen including all contact details and the current status of applications and claims. As a result, customers can be kept well informed about their affairs and human mistakes can be avoided.

Electronic Data Interchange (EDI) EDI is a technique based on agreed standards, which enables computers in different organizations to successfully send business information of transaction from one to another. They emphasize that EDI reduces on the lead-time simply because transactions are faster and more accurate (Lysons et al, 2006).

EDI involves business transactions like, placing orders, invoices, delivery and payment transactions. EDI works according to standards implying that the organizations using it have to agree on the systems and the software that they are to use (Chaffey, 2007).

Bar codes and scanners                                                   

This system of Bar code and scanners represents a series of alphanumerical characters, bar code readers to interpret bar code zymology, and bar code printers to reliably and accurately print bar codes on labels, cartons, and/or picking /shipping documents. The review is included here because bar code systems are the foundation for many paperless warehousing systems, but the review is meant only as a brief introduction to bar code system, This helps in quick and accurate data entry, faster checking and clearing of shipments, automatic tracking of the shipments throughout the accounting practice, (Bailey, 2006).

Electronic- catalogs E-catalogs are web pages that provide information on products and services offered and sold by the vendors and they mainly include; sell side catalogs; buy side catalogs and third party catalogs, E-catalogs support online transactions especially ordering and payment capabilities (Farrington et al, 2006).

E-Catalogs, reduces procurement fraud by providing easy communication and the real product in the market. (Accenture (2006),

The advantages of e-catalogs includes; facilitation of real time communication between buyers and sellers; Allows room for the development of closer buyer-supplier relationship due to improved vendor services. Enables suppliers, respond quickly to market conditions by adjusting   repackaging (Lysons, 2006).

Smart Cards. Smart cards are integrated circuit chips used to store customer specific information including electronic money. They have ability to provide intelligence and store significant amount of information of up to 20 pages of text.  Smart cards will be used to purchase goods or services, store information, and above all, they can be availed to all potential users, (Enslow, 2006)

Satellite

This is a technology that allows communication across a very wide geographical area. Satellite communication provides a fast and high volume channel for information movements. Satellite technology facilitates real time interaction which provides up to date information about location and delivery information about the products in transit. The satellite devices can also be used in tracking and tracing the materials both in ware houses and in transit this also enables an organization to have an accurate data regarding organization materials therefore creating efficiency in accounting systems, (Deo Mc Obrien and P.S Corbett, 2008).

Image processing

This uses fax and optical scanning technology to transmit and store freight bill information and supporting documents such as POD or BOL. Through image processing, the buying company is in position to get timely customer shipment information which is transmitted through the central Data base therefore, providing improved customer service in the form of more timely and accurate delivery, quick shipments, tracing and quicker transfer of sales and inventory information.

Internet

The strategic importance of information is recognized by most people and organizations. The internet thus far is primarily a tool for information sharing between the buying company and the selling company with the potential for electronic commerce being explored. Some companies are setting up private internet used to share data with workers and provide access to the larger internet. In logistics, the internet is used in order to enhance efficient, effective and timely communication between the buying and selling organization, tracking and tracing of the cargo during the actual process of accounting, (Zsidisin, G. and Papadakis 2003),.

Enterprise resource planning:

Enterprises Resource Planning is the English term for a business system. Again, another term that is used for business system is Enterprises System (ES). To describe an ES in a simple way one could say that ES is an information system that manages all the resources available in a company. It is a common term for a co-operating software that manages and co-ordinates much of a company’s resources, assets and activities (Boyle, 2004). Gartner Group developed the ERP concept under the 90’s. The term ERP is defined by them as: “ERP is a planning and communication system that affects all the resources of a company.” Boyle (2004) defines it as: “not a system, but a framework that includes administrative (finance, accounting), human resources (payroll, benefits), and Manufacturing Resources Planning (MRP) (procurement production planning). ERP units’ major business processes- order processing general ledger, payroll, and production within a single family of software modules.” There can be numerous benefits of using enterprises systems and according to Davenport (2002.) the most significant

Include’:

Customer order cycle: The customer order cycle: occurs at the customer/retailer interface and includes all process directly involved in receiving and filling the customer’s order. Typically, the customer initiates this cycle at a retailer site, and the cycle primarily involves filling customer demand. The retailer’s interaction with the customer starts when the customer arrives or contact is initiated and ends when the customer receives the order.

2.3 Relationship between computer systems and accounting efficiency

Standardized accounting process, including faster tracking of errors, improved quality control, efficiency in record keeping, greater efficiency through the use of information and communication components like internets, satellites among others that enables tracking and tracing of the goods in transit, during shipment as well as giving up to date information to the accountants about the quantity of goods in storage so that the accountants are able to reconcile the books of accounts with the physical stock in the store, (Kotler 2000).

Simplified accounting process; The introduction of technology has not only simplified the accounting process but has also improved on the business process including control over suppliers, improved process cycle time, close cooperation relationships, improved supply chain efficiency, accuracy of shared information, (Kenneth Lysons 2006).

Process Automation. With the use of technologically components such as Bar coding, Satellite, internets and Image processing among others in the process of managing accounting efficiency, there has been reduction on paper work thereby leading to a substantial reduction of errors, as well as increased capability to obtaining and exchanging real time information. This is possible through the use of information technology systems such as Bar code and scanners which represents a series of alphanumerical characters, bar code readers to interpret bar code symbology, and bar code printers to reliably and accurately print bar codes on labels, cartons, and/or picking /shipping documents Aberdeen group 2005)..

Improved accounting process; Accounting process involves management of an organizations record with a view of minimizing organizational information in a cost effective way. Accounting information enables suppliers and buyers to get related information from the point of origin to the point of consumption Lysons and Farrington (2006). The introduction of technology has brought in tremendous improvements in the keeping of organizations records from the point of origin to the point of consumption including reduced arrangement costs and handling times, shortened response time for purchasing, improved order process speed and reduced labour costs.

Improved warehousing facilities. Warehousing is the primary link between the producers and the consumers; it is used for storing products (raw materials, in process inventory and finished goods) before they are finally worked upon or delivered to the ultimate consumers. Through the implementation of technology, ware house efficiency and effectiveness has improved greatly through using opportunities such as e- warehousing, e- receipts and e- issuing. These have brought about accurate operations in the warehouse hence complementing accounting management efficiency (R.J Carter et al, 2007)

Reduce product delivery time. Through the implementation of technological system in organizations like Spedag Interfreight Company the organizations’ processes of making payments to their suppliers have improved greatly including faster payment systems like using ATMS, credit cards among others. This reduces among others interest rate, credit risk among others (Aberdeen group 2005).

Improved distribution process. According to Dobler and Burt (2001) With improved tracking and tracing as a result of using internet, satellites among others, the company that is to say the distributing company is assured of efficiency and effectiveness in the distribution process as their trucks are properly tracked and traced so that in case the deliveries are made to a different location, the mistake can easily be rectified. This has therefore, improved Logistics efficiency in organizations and this has all been because of the introduction of information and communication technology. Other benefits include; delivering on time, reduced delivery enquiring time and improved distribution management.

Proper monitoring. The introduction of information and communication technology in logistics management has brought about efficient and effective monitoring of the materials during transit to their various destinations. This is done through use of technologies that allows communication across a very wide geographical area. Satellite communication provides a fast and high volume channel for information movements. Satellite technology facilitates real time interaction which provides up to date information about location and delivery information about the products in transit. The satellite devices can also be used in tracking and tracing the materials in transit. Tracking is specifically achieved through the use of internet and others, this therefore enables both the delivering organization or the supplier and the buyer to know where specifically the goods in transit is and also in case of any problem encountered say by the truck being used for the transportation purposes, it can easily be recognised by the parties concerned (Kenneth Lysons 2003)

Better communication and connection links. According to Nair N.K (2006), the introduction of information communication technology, communication between the buyers and the suppliers has been eased. Logistics is an old age industry that has been one of the greatest holdouts against the waves of computerization that has swept the world. Until recently, most organizations were still using traditional systems like fax and letter writing among others as a means of communication. However with the introduction of information and communication technologies such as telephones, internets and satellites among others, communication has not only been eased but also made efficient and effective.

Faster information transfer. Information and communication technology equipment like internet, satellite and telephones enables a speedy transfer of information between the supplier and the buyer. Therefore, all the necessary information that the supplier needs to give to the buyer regarding how the goods in transit should be handled, stored and packed are given to the buyer prior to delivery so that special attention is taken by the buyer where necessary, According to Dave chffey (2010),  information transfers in the basis of survival for an organization.

Reduce inventory levels. According to (Thomson and Singh 2001) technology helps the buying organisation to order the needed items at the right time and once the need arises then an order will be placed. This helps the organisation to do away with bulk stock levels hence solving the problem of inventory costs like obsolescence and dampness leading to losses this leads to efficiency and effectiveness in the logistics operations.

In conclusion, a number of key factors that inhibit the widespread adoption and use of computers, include the cost of technology, uncertainty over the business benefits and impacts, and the lack of relevant internal computers expertise. The computers technology use in accounting has been observed to be of great benefit to the organization including saving of organizational time this is because Paper works are involved in manual accounting, Accuracy in doing work , ensuring security of the organizational information, reduction of organizational cost and improvement Level of output.

Promotion of technological upgrading is critical in order to encourage organizations achieve various objectives Policy in this area should aim to support training and capacity building via skill development programmes; promote partnerships between manufacturing companies and organizations overseas that can develop or transfer technology, products, processes or management practices; and to facilitate the technological upgrading through various financial schemes, such as credit lines for upgrading.

Facilitation of compliance procedures through adoption of product and process standards has several well-known benefits for firms. It enables them to introduce new technology and integrate business practices that ameliorate their overall performance.

However, different and concurrent standards can become barriers to achievement of accuracy in accounting this is because computers has challenges including loss of privacy by organization, increased risk of being hacked by computers Hackers.

CHAPTER THREE

METHODOLOGY

3.0 Introduction

This chapter presents the methodology which consists of the research design, area of study, study population, sample population and selection, sampling technique, data collection method, data quality control, data collection procedures and limitations of the study.

3.1 Research design

The study will use descriptive research design. The researcher will employ descriptive research design since it provides the opinion of people about the subject knowledge on the role of computerised accounting systems on organizational performance. The design will avail the researcher with comprehensive information about the research study as a way of getting solutions. Descriptive approach, in this case will be used because the study seeks descriptive analysis of information.

3.2 Area of the study

The study will be carried out at Spedag Interfreight.

3.2 Study population and sample size

The study will target, 600 respondents from whom only 240 will be selected , this will help in ensuring that a total representative sample is chosen, the category of the population chosen will specifically include, the procurement staffs, accounting officers of the organization, information technology officers, and administration.

3.3 Sampling techniques

According to (Amin, 2005) sampling involves selecting a sample of the population in such a way that samples of the same size have equal chances of being selected.

The sample will comprise of 240 respondents that will be selected in a way that respondents will be from the procurement department, from administration, from information technology department and respondents who administrators.

The study will use solvin’s formula

It is computed as n = N / (1+Ne2).

whereas:

n = no. of samples

N = total population

e = error margin / margin of error

Spedag Interfreight has 600 employees using solvin’s formula,

n=       600/(1+600(0.05)²

n =      600/2.5

n  =240

There researcher will therefore choose a total of 240 employees

3.4 Data Sources

Source of data will be from both primary and secondary sources.

• Primary data

Primary data will be obtained from the questionnaires administered on the target respondents to gain opinions and practices on the role of computerised accounting systems on organizational performance.

• Secondary sources

Secondary data is data which has been collected by individuals or agencies for purposes other than those of a particular research study. It is data developed for some purpose other than for helping to solve the research problem at hand (Bell, 1997). This will comprise of literature related to role of computerised accounting systems on organizational performance in relation to the case study. Secondary data will be sourced because it yields more accurate information than obtained through primary data, and it is also cheaper.

3.5 Data collection methods

Data collection is the process of gathering and measuring information on targeted variables in an established systematic fashion, which then enables one to answer relevant questions and evaluate outcomes (Amin, 2005).

3.5.1 Focus group discussion

A focus group is a small, but demographically diverse group of people whose reactions are studied especially in market research or political analysis in guided or open discussions about a new product or something else to determine the reactions that can be expected from a larger population. It is a form of qualitative research consisting of interviews in which a group of people are asked about their perceptions, opinions, beliefs, and attitudes towards a product, service, concept, advertisement, idea, or packaging. Questions are asked in an interactive group setting where participants are free to talk with other group members.

Methodology studies the sampling of individual units from a population and the associated survey data collection techniques, such as questionnaire construction and methods for improving the number and accuracy of responses to surveys.

3.5.2 Interview Method

An interview is conversations were questions are asked and answers are given, (Amin, 2009), in this study interviews will be used because it gives accurate answers to the study and it helps the respondents answer the questions asked.

The interviews will also be used by the researcher because it is deemed cheap and there are easily answered by the respondents since booth illiterates and literates can respondents to the researchers questions.

3.6 Data Collection Instruments

The major instruments for data collection will be questionnaires and interview guide. Surveys will be just one part of a complete data collection and evaluation strategy. The major method of data collection for the study will be the survey, which will be done using selected instruments like questionnaires. The questionnaire will provide respondents with ample time to comprehend the questions raised and hence, they will be able to answer factually.

3.5.1 Questionnaires

The questionnaire will be used to collect quantitative data. The researcher will administer the questionnaires to respondents in different departments including, procurement, administration, information technology officers and accounting which will be designed basing on study objectives and questions. Respondents will read and write the questionnaires themselves. The questionnaires will be close ended and will be considered convenient because they will be administered to the literate and its anonymous nature will fetch unhindered responses.

3.5.2 Interviews guides

Qualitative data will be collected from the informants using interviews. The interview guide will be structured. The interviews will be held with administration, and will take approximately thirty to sixty minutes. This will be used since it’s the best tool for getting first-hand information /views, perceptions, feelings and attitudes of respondents. Both formal and informal interviews will be used to get maximum information from the different respondents to participate in the research.

3.6 Data collection procedures

Upon receiving the University permission to carry out research, the area of study will be visited for purposes of familiarization.  The researcher will seek permission from staff and once allowed to proceed with research, questionnaires will be issued and interviews will be carried out with the selected staff.

3.7 Quality control of data instruments

The instrument will be taken to the supervisor to check its correctness there after pilot study will be carried out to find out if it measures what it is meant to for.

3.8 Data processing and analysis

The raw data will be coded, edited, and arranged ready for analyzing only completed raw data will be analyzed using statistical tables and graphs.

3.9 Limitations of the study

Respondents may delay in filling the questionnaire and fear to give information, but they will be persuaded that the information will be kept secret.

Some respondents may complain that they don’t have time to answer the questions but researcher will budget for time appropriately.

*

CHAPTER FOUR

PRESENTATION, ANALYSIS, INTERPRETATION OF FINDINGS

4.0 INTRODUCTION

This chapter presents the results in reference to objectives in chapter one. Capacity in which one is serving Spedag Interfreight, Gender of respondents, Age of respondents, Education level of respondents, Range of years worked by respondents, To establish the benefits of computer systems in accounting at Spedag Interfreight Uganda Limited, the various forms of computers system being employed, and the relationship between computer systems and accounting efficiency at Spedag Interfreight.

4.1 FINDINGS ON GENERAL INFORMATION

4.1.1 Findings on the capacity of respondents.

In relation to the sampled offices of interest for data collection, below is the table showing their responses or representation.

Table 4.1.1: Shows findings on the designation of the respondents

From the findings above the table shows that majority of the respondents are from the ICT department with 30% this was also very convenient for the researcher since this is the department which is well vast with the topic of study and thus a chance to give well classified data in relation to the topic. On the other hand few respondents of 13.3% were from the procurement staff.

4.1.2 Findings on the Gender of respondents

Depending on the sample of respondents that was taken, below is the table showing the gender distribution.

Table 4. 1.2: Shows the findings on the gender of the respondents

Source: primary data

Table 4.1.2 above shows that 60% of respondents were male and 40% were female. This means that the biggest percentage of respondents and employees in the organization that were sampled were male and apart from that it also shows that male gender dominate the work force of Spedag Interfreight which eased the work due to flexibility of men other than women.

4.1.3 Findings on the age of respondents.

The age groups of the respondents were represented as shown below;

Table 4.1.3: Shows findings on age of the respondents age

Source: primary data

Figure 1: Pie Chart Showing Age Category of Respondents

The table and pie-chart above shows that 33.33% of the respondents are in the age group of 18-29 while 50% of the respondents are in the ages of 30-39 while the remaining respondents of 16.6% are in the ages of above 40 years. This showed that respondents between the age 30-39 dominated all therefore are still in an active range therefore can give sound and clear responses in relation to the questions which gives accuracy in data collected.

4.1.4 Findings on the education level of respondents.

The education levels of the respondents were as shown in the table below;

Table 4.1.4: Shows findings on education level of respondents

From the findings above the table this implies that the degree holders are able to give reliable information about the topic since they have enough knowledge and qualifications.

4.1.5 Findings on the number of years respondents have worked at Spedag Interfreight.

The number of years respondents have worked with Spedag Interfreight is as shown in the table below;

Table 4.1.5 showing the number of years respondents have worked at Spedag Interfreight.

Source: primary data

The table shows that majority of the respondents have worked for the time period of 6-10 years and therefore have much knowledge about the organization thus can give adequate information.

Figure 2: Bar Graph Showing Number of Years the Respondents have worked at Spedag Interfreight

The bar graph above shows that majority of the respondents have works between  the range of 6-10 years this shows that  the majority of the respondents have enough knowledge on the operations of Spedag Interfreight and therefore they were able to give detailed information regarding the topic.

Then the least of respondents have worked there for 10 years and above however those that have worked between 3-5 years are more than them.

4.2 Benefits of computer systems in accounting.

The Benefits of computer systems in accounting are summarized in the table below;

Table 4.2.1: Shows the Benefits of computer systems in accounting.

From table 4.2.1 above, findings revealed that, 50% of respondents strongly agreed that computer system helps in Time saving, 33.3% agreed while 16.6% agreed this therefore shows that majority of respondents agree that computer system saves time.

According to the table 60% of the respondents strongly agreed that Accuracy in accounting work is enhanced by use of computer system, while the remaining 40% agreed this therefore shows that all the respondents agree with the fact that.

According to the table above, 73.3 % of the respondents strongly agreed that computer system Ensures the Security of organizational work at Spedag Interfreight while 16.7% agreed, 3.3% of the respondents were not sure while the remaining 10% basing on this response it is therefore clear that.

From the table 83.3% of respondents strongly agreed that Cost effectiveness is achieved by use of computer system at Spedag Interfreight while the remaining percentage of 16.6% of the respondents agreed.

4.3 Various computer systems installed in Spedag Interfreight

 Table 4.3.1: Shows various forms of computers system being employed..

From table above, 60% of the respondents strongly agreed that electronic funds transfer is an computer system installed to prevent accounting efficiency while the remaining 40% agreed, this therefore shows that the majority of the respondents agreed that electronic funds transfer is an computer systems installed to ensure accounting effectiveness at Spedag Interfreight.

According to table above it indicates that, 73.3 % of the respondents strongly agreed that electronic mail is instrumental at detection of accounting inefficiency at Spedag Interfreight, while 26.67% agreed , while none of the respondents, was neutral, disagreed, and strongly disagreed, this findings also shows that indeed electronic mail is instrumental in promoting accounting efficiency.

Findings revealed in table above, shows that 50% of the respondents strongly agreed and the remaining percentage this therefore shows that 100% of the respondents agree with the fact that electronic data interchange helps in the in promoting accounting efficiency at Spedag Interfreight.

According to the table 56.7% of the respondents strongly agreed that smart cards help in the promotion of accounting efficiency in an organization while the remaining 33.3% of the respondents strongly agreed, while none of the respondents was neutral, disagreed or strongly disagreed, this therefore clearly shows that smart cards are instrumental in prevention of accounting inefficiency at Spedag Interfreight.

From table above, majority of the respondents strongly agreed that electronic catalogue help in the promotion of accounting efficiency while 23.3% while none of the respondents were neutral disagreed or strongly disagreed.

4.5   Relationship between computer systems and accounting efficiency.

Table 4.5.1:  Shows the Relationship between computer systems and accounting efficiency.

Table above reveals that proper management of procurement records helps in Simplified accounting process at Spedag Interfreight this is supported by the strong percentage of 46.67% strongly agreeing, while 33.3% agreed and 10% disagreed while the remaining percentage of respondents strongly disagreed.

The table indicates that majority of the respondents strongly and agreed that Process Automation is essential in minimizing accounting inefficiency while none of the respondents was neutral, disagreed, and strongly disagreed.

According to table above, 46.7% of the respondents strongly agreed that Improved accounting process is essential at ensuring that there is accounting efficiency at Spedag Interfreight, while 33.3% of the respondents agreed while 20% of the respondents where neutral.

According to researchers’ findings, 50% of the respondents strongly agreed that Improved warehousing facilities is achieved as a result of using the computer system. While the rest of respondents agreed this therefore shows that use of computers are essential in accounting.

According to the table 66.7% of the respondents strongly agreed that there is reduced product delivery time at Spedag Interfreight to ensure that there is efficiency in accounting efficiency while 16.7% agreed and the remaining percentage disagreed.

Chapter five

Discussion, conclusion and recommendation

5.0 Introduction

5.1 Discussion of findings

5.1.1 Benefits of computer systems in accounting.

The findings in the study indicates that computer system helps in Time saving of organizational activities this was also in line with Magdalene M, (2010), who states that Paper works are involved in manual accounting; all the accounting activities are carried out on paper manually and obviously, it takes much time and resources for the average business organization and most especially, a financial institution that still uses the manual system. Computerized accounting saves a lot of time where in, the employee has to record the transactions and all the other calculations would be carried out by the software either automatically or by a request.

The results show that accuracy in accounting work is enhanced by use of computer system this is also in line with  Magdalene M, (2010) states that computerized accounting is not only speedy but also accurate. With a computer being used to collect data and change it into meaningful information that is used by management to make timely and effective decisions, the computer carries out the entire data processing through classifying, sorting, calculating, summarizing the data and production of reports, as stated by Birungi (2011). This entire process helps to minimize the risk of miscalculations and other human errors that could have emerged as a result of manual data processing.

Findings indicates that computer system ensures the Security of organizational work at Spedag Interfreight this is also in line with Birungi (2011) who states that with the manual accounting system, every record is on paper and in case of any uncertainties such as heavy floods, landslides and fire outbreaks, the useful data may all be lost, and yet with the computerized accounting system and the introduction of internet and networks in the information technology world, an easy backup and restoration system as well as the use of passwords to avoid unauthorized parties from accessing the data, keeps the information secure

The results in the study indicates that Cost effectiveness is achieved by use of computer system at Spedag Interfreight this is also in line with Van weele ,2005), who states that Some arguments may stress that manual accounting can be handled with cheap work force and resources and that it is reliable as it is done manually with minutes of observations. However, the level of competition in the business world of today is tight and even growing tighter day by day and if a business with an aim of being successful does not consider the aspect of time especially as far as decision making is concerned, then that business stands to lose.

5.1.2 Various computer systems installed in Spedag Interfreight

The results indicates that electronic funds transfer is an computer system installed to prevent accounting efficiency this view is also shared by (Chaffey, 2012) who states that this is an exciting development in the 1980s. EDI is a technique based on agreed standards which facilitates business transactions in a standardized electronic form in an automated manner directly from a computer application in one organization to an application in another organization. The growth of microcomputer usage in accounting systems is to direct electronic transmission of data and standard business forms between the buying organization and its suppliers

The results in the study indicates that electronic mail is instrumental at detection of accounting inefficiency this is also in line with  Bialy et al, (2006) who states that technological progression necessitates that organizations should have formulated plans to handle development for example in the development of EDI as one of the information technologies used in supporting accounting activities.

Findings revealed that electronic data interchange helps in the in promoting accounting efficiency at Spedag Interfreight this is also in line with (Lysons et al, 2006) who states that Electronic Data Interchange (EDI) EDI is a technique based on agreed standards, which enables computers in different organizations to successfully send business information of transaction from one to another. They emphasize that EDI reduces on the lead-time simply because transactions are faster and more accurate.

While (Chaffey, 2007) further states that EDI involves business transactions like, placing orders, invoices, delivery and payment transactions. EDI works according to standards implying that the organizations using it have to agree on the systems and the software that they are to use

The results in the study indicates that smart cards help in the promotion of accounting efficiency in an organization this is also in line with (Enslow, 2006), who states that Smart cards are integrated circuit chips used to store customer specific information including electronic money. They have ability to provide intelligence and store significant amount of information of up to 20 pages of text.  Smart cards will be used to purchase goods or services, store information, and above all, they can be availed to all potential users.

The results states that respondents strongly agreed that electronic catalogue help in the promotion of accounting efficiency this view is also shared by Farrington et al, (Farrington et al, 2006), who states that E-catalogs are web pages that provide information on products and services offered and sold by the vendors and they mainly include; sell side catalogs; buy side catalogs and third party catalogs, E-catalogs support online transactions especially ordering and payment capabilities.

5.1.3 Relationship between computer systems and accounting efficiency

The results indicates that indicates that use of computers helps an organization to achieve Simplified accounting process this is also in line with Kenneth Lysons (2006) who states that the introduction of technology has not only simplified the accounting process but has also improved on the business process including control over suppliers, improved process cycle time, close cooperation relationships, improved supply chain efficiency, accuracy of shared information.

The results indicates that Process Automation is essential in minimizing accounting inefficiency this is also in line with Aberdeen group (2005), who states that with the use of technologically components such as Bar coding, Satellite, internets and Image processing among others in the process of managing accounting efficiency, there has been reduction on paper work thereby leading to a substantial reduction of errors, as well as increased capability to obtaining and exchanging real time information.

The results indicates that improved accounting process is essential at ensuring that there is accounting efficiency at Spedag Interfreight this is also in line with Lysons and Farrington (2006), who states that accounting process involves management of an organizations record with a view of minimizing organizational information in a cost effective way. Accounting information enables suppliers and buyers to get related information from the point of origin to the point of consumption.

The result indicates that improved warehousing facilities is achieved as a result of using the computer system this is also in line with (R.J Carter et al, 2007) who states that Warehousing is the primary link between the producers and the consumers; it is used for storing products (raw materials, in process inventory and finished goods) before they are finally worked upon or delivered to the ultimate consumers. Through the implementation of technology, ware house efficiency and effectiveness has improved greatly through using opportunities such as e- warehousing, e- receipts and e- issuing. These have brought about accurate operations in the warehouse hence complementing accounting management efficiency

The results indicates that the use of computers is essential in ensuring that there is reduced product delivery time at Spedag Interfreight to ensure that there is efficiency in accounting efficiency this is also in line with (Aberdeen group 2005) who states that through the implementation of technological system in organizations like Spedag Interfreight Company the organizations’ processes of making payments to their suppliers have improved greatly including faster payment systems like using ATMS, credit cards among others. This reduces among others interest rate, credit risk among others.

5.2 Conclusions

The results indicates that computer system helps in Time saving, Accuracy in accounting work is enhanced by use of computer system, computer system Ensures the Security of organizational work and Cost effectiveness is achieved by use of computer system.

5.5 Recommendations

The results in the study shows that the use of computers is essential in ensuring that there simplified accounting process.

The study also recommends that the use of computers enhances process Automation is essential in minimizing accounting inefficiency.

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APPENDIX I: BUDGET ESTIMATES

APPENDIX II: TIME PLAN