Accounting Information System and Financial Performance of Financial Institutions in Uganda. A Case Study of Pride Micro Finance Kabalagala Branch in Kampala.

ABSTRACT. The study sought to find out the relationship between accounting information system and financial performance of financial institutions in Uganda; a case study of Pride microfinance limited, Kabalagala branch in Kampala. The study specifically looked at the effect of AIS on return assets, effect ofAIS on Efficiency and the effects ofAIS o decision at Pride microfinance limited in Kampala at Kabalagala branch. A cross-sectional study design for quantitative and qualitative analysis was used on 46 respondents that brought back the questionnaires. Data was collected by use of a self-administered questionnaire, and interview guide. Quantitative data was analysed at univariate level basing on the mean and frequencies, percentages, bivariate level using correlation coefficient with the help of Statistical Package for Social Sciences 17.0 (SPSS). Qualitative data were analysed by content analysis by composing explanations and substantiating them using the respondents open responses. The researcher found out that accounting information system provides information financial performance measuring ratios, provides useful information about the performance of debt in the capital structure that the general manager must try to influence in order to improve and manage the overall organizational performance. The researcher further found out that AIS provides information about assets in an organization which helps to do investment planning within pride microfinance limited. The study also recognized that accounting information system enables the users to make informed judgments. Since every decision involves several alternatives, It assists the user to decide his course of action. Accounting is a process which with the help of accounting records produces financial statements. It also helps management in their important duties of planning, organizing, leading, supervising, controlling and decision making. The researcher concluded that AIS affects the overall financial performance in pride Microfinance limited at Kabalagala where it highly influence decisions made, the nature of communication and efficiency in performance at the financial institution. Therefore the researcher recommended pride microfinance to undertake more awareness programmes to create positive stance towards AIS amongst stakeholders. In other words a lot of sensitization needs to be done to the users and all stakeholders for it to be successful at pride microfinance limited in Kampala especially at Kabalagala branch.