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.

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 in vestigate 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;

To establish the benefits of computer systems in accounting at Spedag Interfreight Uganda Limited.
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;

What are the benefits of computer systems in accounting at Spedag Interfreight Uganda Limited?
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

The findings of the study will provide the management of Spedag Interfreight Uganda Limited information on benefits of computers systems 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 computer systems and accounting efficiency at Spedag interfreight.