The Effects of Computerized Accounting Systems on Production of Financial Reports: A Case Study of Infectious Disease Institute.

Abstract

BIZIBU IGA GODWIN (2011-M102-20028) The Effects of Computerized Accounting Systems on Production of Financial Reports: A Case Study of Infectious Disease Institute This research aimed at an evaluation of the effects of computerized accounting system in relation to production of financial reports at Infectious Disease Institute (IDI). This was because despite the existence of the computerised accounting system, financial reports are not produced on time. The objectives of the study were; to examine the extent of use of a computerised accounting system, to examine the effects of the computerised accounting system on production of financial reports, to identify the challenges encountered in using a computerised accounting system and to suggest possible solutions to challenges identified. The study was carried out at Makerere and Mulago centres with a sample size of thirty respondents. The purposive sampling technique was used to select the sample size. The researcher used descriptive and correlation research designs while carrying out the study. Questionnaires, observations and interview guides were used to collect data. Research findings revealed that 98% of the sample size used a computerised accounting system to generate financial reports. Reports generated are on average reliable, complete, and accurate but not on time. The computerised system is more efficient than the manual system. The challenges identified included; few system licenses, internet failure, inadequate skills, power failures, system errors, incorrect system setup, computer viruses, slow network, low staffing, work overload and huge costs of training. Recommendations to avert the challenges include; purchase of more licenses, system upgrade, training of users, power backups, correct system setup, use of anti-viruses, close supervision, getting reliable software vendors and recruiting more staff. Key words: Accounting, Financial, Production, Reports, System