CHAPTER ONE

1.0 Introduction

This chapter presented 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

A computers system covers vast areas of technologies such as mobile and wireless technology, telecommunications, software development, security. Intelligent systems etc. Computers has had a huge impact on industries, the community in general and our daily lives. ICT can be applied to many fields. One of the emerging applications in recent years is in logistics (Kwok Hung Lau and Haibo Huang 2012). Information and Communication 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.

The accounting profession is rapidly advancing in response to changes in its environment. It is also argued that accountants are struggling to maintain their identity and purpose as the organizations they work for undergo radical changes (Solomon et al 2003). Advances in IT continuously render control procedures outdate, and the “value” of traditional accounting has become seriously questioned (Tongren and Warigon, 1997). As IT changes occur more quickly, accountants must keep pace with emerging technological changes and their impact on their organisation‟s data processing system, as well as their own accounting procedures (Rezaee and Einstein, 1998). IT is an increasingly powerful tool for improving the delivery of government services. IT and the internet in particular have opened new possibilities for the government and the governed, just as it has for the businesses and its customers (Hazman and Maniam, 2004; Moon, 2002).

Computers is today being applied in many organizations in a wide range and operations areas. It has provided new ways to store, process, distribute and exchange information both within companies and with customers and suppliers in the supply chain (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 competition, (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. Uganda as a country before the period of 2000, the level of fraud was not pronounced like it is happening now where there are many cases of fraud running on the media such as news papers, radios, televisions and magazines. According to report on the news paper (daily monitor Monday 23 may 2011), Uganda revenue authority (URA) noted that the government is losing revenue as a result of organized crime between staff of the institution and officials of clearing and forwarding firms. Ms Sarah Kasheka, the acting commissioner customs said that “at least 10 clearing agencies have been suspended for tax fraud including; under declaration of the value of imported goods, diversion of cargo, and forging signatures of URA officials”.

More accounting irregularities were also experienced during Tamangalo land issue, mismanagement of national social security fund and during CHOGM in 2007 in Uganda. According to the Public Accounts Committee (PAC) report on the Commonwealth Heads of Government Meeting (CHOGM 2007) Kampala, the committee estimated that CHOGM expenditure almost doubled from the authorized and appropriate budget of two hundred seventy billions shillings (270,000,000,000/=) to over five hundred billions (500,000,000,000/=). According to PAC report (2010), some roads which were designed by the consultants were never worked on yet the designers had already been paid.

Organizations are looking at initiatives that can enable them obtain a better competitive advantage over their competitors, in terms of customer satisfaction. In order to achieve this goal executives in the information age are in need of instant and result oriented information in order to make strategic decisions. (Chaffey 2007)

Despite the fact there is constant improvement in computer systems and the huge amount of money invested in computer stymes, Companies are still incurring heavy losses in terms of high costs, delayed delivery, bribery, bid rigging, missing of products in transit and above all poor customer service, this is very disturbing to all the stakeholders as to why such mishaps continue to happen. Basing onn this Background this study intends to investigate into

1.2 Statement of the problem

The introduction, implementation and usage of computers in companies is usually motivated by an attempt to reduce costs. The objective is to obtain a more efficient accounting system, which consumes fewer resources in terms of labour and maintains high level of productivity etc. Owing to fierce market competition and rapidly changing business environment, organisations are forced to focus on their core competencies an. In order to work hand in hand with customers to meet their day today needs, companies have been forced to make use of computer systems for efficient communication with clients and coordination of activities in the organization.

However despite of the fact that

Despite the fact that, there has been a great and constant improvement in computer systems, evidenced by the huge amounts of money invested by companies, procurement fraud still exists, corruption, theft, missing of goods in transit and poor customer service. In addition, there is low response in providing management, clients and suppliers with accurate and timely information. Therefore, based upon the above the researcher intends to investigate into the influence of computerised accounting on organizational performance.

.1.3 Purpose of the study

The study aims at establishing the influence of computerised accounting on organizational performance

1.4 Specific objectives of the study

The overall objectives of this research are;

To establish the benefits of computers in accounting at cooper motor cooperation Uganda Limited.
To assess the various forms of computerised system being employed in cooper motor cooperation Uganda Limited.

To establish the relationship between computerised system and accounting efficiency at cooper motor cooperation.

1.5 Research questions

The following research questions shall guide the study;

What are the benefits of technology in accounting at cooper motor cooperation Uganda Limited?
What are the various forms of Technology being employed in cooper motor cooperation Uganda Limited?

What is the relationship between technology and accounting efficiency at cooper motor cooperation?

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 influence of computerised accounting on organizational performance.

1.6.2 Geographical scope

The study will be carried out in cooper motors (U) Ltd P.O. Box 1348 Kampala.

1.6.3 Time scope

The study will cover the period from February to August of this year (2017).

1.7 Significance of the study

The findings of the study will provide the management of cooper motors Uganda Limited information on benefits of technology in accounting practices.
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 technology and accounting efficiency at cooper motors.