Accounting Information Systems And Profitability Of A Business Entity A Case Of Uganda Book Shop

ABSTRACT

This research study was basically on accounting information systems and profitability of

an institution. Emphasis mad eon types of businesses and their accounting information

systems, users of the accounting information, differences between management

accounting and financial accounting during discussion making. The accounting

concepts/rules, purpose of financial statements, profitability and cash flows, General

accepted accounting principles (GAAP), professional ethics and how the financial

statements are related to profits of an organization.

The researcher in canying out the study was guided by the following research objectives

To find out whether accounting information systems have an impact on the profits of the

business entity

To find out the different accounting methods used by business entity (s) a case of Uganda

Bookshop

To ascertain the necessary qualities of an accounting information system

To find out the relationship between financial accounting and management accounting

and profitability of the business.

The researcher used a non-probabilistic sampling method, using questionnaires and

interview as major investment for data collection.

However, the researcher chose Uganda Book Shop (Kampala branch) as an area of study

because it's a business entity which aims at profit maximization and therefore has in

place an accounting information system to ascertain its profits and therefore find out

whether the accounting information systems can influence the level of profits of that

organization.

The findings of the study indicated that accounting information systems such as

following accounting convention/rules when preparing organizations accounts, financial

statements preparations, using an external certified public accountants (CAP), practicing

management accounting, following professional ethics when handling business accounts

and following Generally accepted accounting standards (GAAP) can promote the

profitability of Uganda Bookshop.

In order for the bookshop to improve further on its profitability if should know the users of its accounts for proper decision making, should make research on other factor s that may affect the profitability other than accounting information systems for example promotion of sales, employee's motivation.