EFFECTS OF COMPUTERISED ACCOUNTING METHOD AND CONTROL SYSTEM ON PRODUCTION

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EFFECTS OF COMPUTERISED ACCOUNTING METHOD AND CONTROL SYSTEM ON PRODUCTION

CHAPTER ONE/INTRODUCTION

 

BACKGROUND OF STUDY

Accounting is the science of accurately documenting, classifying, and summarizing financial operations, events, and transactions in monetary terms, as well as analyzing the outcomes. The benefits of computerized accounting are clear in that financial data can be safely saved and accessed as needed after the system is established and information is implemented. For example, a firm’s management could need the data of a debtor who has been delinquent for the past six (6) months, and the computer will provide the information in seconds, rather than two weeks.

Only a computerized accounting approach and control system can supply all of the essential financial data at the conclusion of the accounting period, which is why management requires timely information for planning. Many commercial and private institutions, especially banks, are finding it more difficult to evaluate financial data fast and accurately enough to satisfy their numerous customers. A lack of effective financial information management hinders management planning in every contemporary organization, resulting in low productivity and a negative goal for every firm, which is to maximize profit. The objective of most of our commercial and private enterprises nowadays is to use computerized accounting procedures and management systems. Companies are tired of hiring auditors to examine their financial accounts for a variety of reasons.

In order to produce effectively and efficiently, management requires timely information for planning and forecasting. These problems can be solved with the help of a computerized accounting system.

STATEMENT OF THE PROBLEM

This study entitled the “Effects of Computerized Accounting Method and Control Systems on Production”

Examine the productivity effects of a computerized accounting system. Using human labor to process accounting data has a number of drawbacks. Organizations have been driven off course by a variety of errors, including commission and omission errors, aver-statement and under-statement of account. Often, these mistakes are not discovered until the organization has incurred a considerable loss.

Many organizations have lost a substantial amount of money as a consequence of a mistake, and the resultant effect on total productivity has resulted in a decrease in efficiency, which is something that many companies strive towards. We’ve encountered a lot of cases where the trial balance or balance sheet couldn’t balance because the account was either overstated or understated, resulting in the creation of a suspense account. Another problem with banks is the waste of time while cashing checks, depositing checks, or withdrawing money from an account; we’ve all been in commercial banks when customers have complained that bank staff took too long to conduct their transactions.

The study is also looking into the challenges of compiling accounting data, especially when time is of the essence. When people are under pressure, they are more prone to make mistakes, which have previously resulted in losses. Humans are also prone to fatigue, therefore any activity accomplished under such conditions is more likely to contain errors. Finally, I’d want to say Based on the aforementioned difficulties, depending entirely on clerical labor to process accounting data would result in a deluge of errors, resulting in lost revenue, insufficient information for management planning, wasted time, and a general slowdown in the country’s overall economic growth. These challenges are unsolvable without the usage of an appropriate system, which is the only system capable of providing an effective response.

PURPOSE OF THE STUDY

When the researcher states “purpose of the study,” he indicates the principal aim he has in mind. One of the objectives is to increase awareness of the benefits of using computers to manage accounting data. Many people and organizations fear that computerizing business processes would increase unemployment, yet this is not the case. Despite having much fewer unemployed graduates than Nigeria, the United States has digitized virtually every aspect of their life, including both business and non-business activities, utilizing both digital and non-digital computers. Again, a company that employs a computerized accounting system already has a number of benefits, and any other company, large or little, should do the same.

Objectives of the Study

  • To establish the accounting systems being used.
  • To establish the benefits of computerized accounting system being used.
  • To establish the appropriate strategies for improving computerized accounting system in efficiency of production.

Research Questions

  • What accounting system 1s being used?
  • What are the benefits of computerized accounting system being used?
  • What appropriate strategies can the firm use to improve on timely as an aid for efficient management of an organization?
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