IMPACT OF
COMPUTERIZED ACCOUNTING SYSTEM ON EMPLOYMENT IN FINANCIAL INSTITUTIONS
A CASE STUDY OF ECO BANK
ABSTRACT
The research profers an appraisal of the impact of
computerized accounting system on employment in financial institution, it
analyzes the concept of computerized accounting system and the nature of
employment in financial institution. It seeks to determine the impact of computerized accounting on employment in
financial institution.
INTRODUCTION
Ama
(2004) defines this system as a system that uses specialized machines called
calculators and computer in gathering information. It is technically known as
Electronic Data Processing (EDP) Accounting System.
A
computer – based accounting system processes data in basically the same manner
as does a manual system. Transactions are initially recorded manually on
sources documents, the data from these source documents are then key – punched
into punched cards, which can be read by the computer. The computer process the
information and performs such routine tasks as printing journals, posting to
ledger accounts, determining account balances and printing financial statements
and other reports.
A
computerized accounting system is a system which allows the user to enter the
transaction into the program once and all accounts are update as necessary
According
to Wikipedia the free encyclopedia, some applications of computer in accounting
system are:
Word
processor
Data
base
Spread sheet
WORD
PROCESSOR
It
is a software packages to help in text processing words are processed.
Processing includes injection, deletion, changing, moving words, paragraphs
etc. Word processing is the preparation of types scripts, using computing
facilities for the storage and manipulation of text for e.g word processor has
the ability to merge names and addresses with standard text so as
to give impression that the letter is personalized even in case of circular
letter.
DATA BASE
It is simple collections of information (data) on a particular
subject. Data base file allows you to manipulate the data in desired form. So
database allows us to work on facts and figures to store and manipulates data
in any desired way for e.g from the same basic information trial balance is
prepared, trading and profit and loss accounts may be prepared; list of debtors
creditors may be prepared, purchase and sales forecast may be made etc.
SPREAD SHEET
This is one of the software programs which have increased the
utility of computers for accounting purposes. Spreadsheet programs help you to
draw vertical as will as horizontal columns on a large sized paper. Each
column’s length and breadth can be adjusted according to suitability.
CHAPTER 1
1.1
BACKGROUND OF THE STUDY
Tanenbaum (2010) states that manual processing of
accounting data is too slow, and labour intensive in the banking industry. The
speed at which computers can get according data processed cannot be matched.
Computerized accounting system provides a means for those firms to record, very
high volume of transaction with
the great speed and financial and prepare a wide range of detailed financial
report.
Computerized accounting system affects strongly on the
accounting work and on the performance of banking industry the computers can
handle the recording process able to spend more time analyzing, planning and
controlling financial operations for management, this can provide a greater
amount of analytical information for use in decision making.
Pandey (2007) adds that management is also in a better
position to monitor the financial performance of all segments of the
organization because a computerized accounting system can produce a broad range
of detailed reports at short interval. This is highly important for banks used
as a study in this research (Diamond, First and ECO Bank Plc.) because of different
branches located at different places.
Thus, computerized systems avoid the time lost in correcting
common errors. Computerized accounting system provides management with current
accounting balance information since balance is posted as the transaction
occur. However this various advantages mitigates the level of manpower employed
in the financial institution.The research intends to investigate the impact of
computerized accounting system on
employment in financial institution
1.2
STATEMENT OF THE PROBLEM
The problem confronting this research is to determine the
impact of computerized accounting system on employment in financial institution
With a case study of eco bank plc.
1.3 RESEARCH QUESTION
1 What is computerized accounting system
2
What is the impact of computerized accounting on employment in financial
institution
3 What is the impact of computerized
accounting on employment in Eco Bank
1.4
OBJECTIVE
OF THE STUDY
1 To appraise the nature of computerized accounting system
2 To determine the impact of computerized
accounting
system on employment in financial institution
3 To determine the
impact of computerized accounting system on employment in eco bank
1.5
SIGNIFICANCE OF THE STUDY
The research shall provide a detail analysis of computerized
accounting system and its impact on employment in financial institution
1.6
STATEMENT
OF HYPOTHESIS
1 Ho computerized accounting system is not
applied in ecobank
Hi computerized accounting system is applied in ecobank
2 Ho computerized accounting system is not
significant in eco bank
Hi computerized accounting is significant in eco
bank
3 Ho The impact of
computerized accounting on employment in eco bank is low
Ho The impact of
computerized accounting on employment in
eco bank is high.
1.7
SCOPE
OF THE STUDY
The study is focused
on the appraisal of the impact of computerize accounting system in
finanacial institution with a case study of eco bank,
1.8
DEFINITION
OF TERMS
ACCOUNTING SYSTEM
DEFINED
Ama
(2004) defines the accounting system as “ a formal system for identifying,
measuring, accumulating, analyzing, preparing, interpreting and communicating
accounting information about a particular entity to a particular group”. By
formal system, we mean that the accounting system carries out its functions
with laid down rules, regulations, methods, procedures and techniques. It is
also a routine and an automatic system. An accounting system as opined by Ama
(2001) is a formal mechanism for gathering, organizing and communicating
information about an organization’s activities.
COMPUTERIZED
ACCOUNTING SYSTEMDEFINED
Ama (2004) defines this system as a
system that uses specialized machines called calculators and computer in
gathering information. It is technically known as Electronic Data Processing
(EDP) Accounting System.
A computer – based accounting system
processes data in basically the same manner as does a manual system.
Transactions are initially recorded manually on sources documents, the data
from these source documents are then key – punched into punched cards, which
can be read by the computer. The computer process the information and performs
such routine tasks as printing journals, posting to ledger accounts,
determining account balances and printing financial statements and other
reports.