The role of computerised accounting systems in organizations

Abstract

The study was intended to establish the role of Computerized Accounting Systems in organizations. Kampala Accountancy Bureau Limited, RTI International, and Infectious Diseases Institute together with 29 other organizations were selected as the case studies and the research laid its emphasis on the Information Technology (IT) and Audit departments where computerized systems are strongly used in recording, processing, storing data and in the preparation of financial reports. The objectives of the study were; To find out the Computerized Accounting Systems used in organizations, To establish the impact of Computerized Accounting systems on organizations, To identify the problems associated with Computerized Accounting Systems and To find out the solutions to the problems facing Computerized Accounting Systems in organizations. Qualitative and quantitative research approaches were used because they were applicable and structured questionnaires was the method employed to assess the activities at the different organizations. Quick Books, Navision and Tally were identified as the computerized systems used in most organizations. Computerized systems were found to have improved business performance and enabled the accurate and timely generation of reports among other benefits. Susceptibility to Virus attacks and huge training costs were some of the problems that were found to be associated with computerized systems. A number of solutions were also solicited. Recommendations made included; advocating for favourable Government policies so as to reduce on the cost of acquiring and installing computer hardware and software and employing well and already trained staff to reduce training costs. The areas of further research that were suggested were; assessing the impact of computerized accounting systems on inventory management, the influence of computerized systems on fixed asset management and assessing the contribution of computerized accounting systems on the enforcement of internal controls.