Impact of Accounting Information Systems On Financial Performance of Jinja District Local Government.

ABSTRACT This study is set to analyze the role of computerized accounting on the financial performance of Jinja district local government council, specifically, the study aimed at finding out the role of computerized accounting on financial performance in the entity. The study also endeavored to discover the benefits of computerized accounting. In the course of the study, the researcher used qualitative and quantitative research design with the help of questionnaires where a list of detailed questions were designed and distributed to the selected respondent. Interview guide was also used to obtain information from staff could easily be accessed and contacted. According to the findings, there is a recommendation to use professionals to handle computerized accounting systems to reduce on inaccurate and unreliable results. This will therefor the organization in generating accuracy reports and reliable results. In addition, to the findings, a recommendation of other ways of evaluating financial performance like at capital structure should be done by the organization. According to the findings, a recommendation of customization of the system to fit the specific needs like speedy, less cost, timely, the organization should select a package or software that are user friendly.

TABLE OF CONTENTS

DECLARATION ......................................................... ................................................................... ii

APPROVAL .................................................................................................................................. iii

DEDICATION ............................................................................................................................... iv

ACKNOWLEDGEMENT ................................................................................................. ............. v

TABLE OF CONTENTS ......................................................................... ...................................... vi

LIST OF ABREVATIONS ........ .................................................................................................... ix

LIST OF FIGURES/TABLES ........................................................................................................ X

ABSTRACT ................................................................................................................................... xi

CHAPTER ONE ........................................................................................................................... 1

INTRODUCTION ......................................................................................................................... 1

1.1 Background of the study ....................................................................................................... I

1.2 Statement of the problem ...................................................................................................... 3

1.3 Objective of the study ........................................................................................................... 3

1.3.1 General objective ............................................................................. .. ................................ 3

1.3.2 Specific objectives ............................................................................................................. 4

1.4 Research questions ................................................................................................................ 4

1.5 Scope of the study ........................................................................... ...................................... 4

1.5. 1 Content scope .................................................................................................. ................... 4

1.5.2 Geographical scope ............................................................................................................ 4

1.5.3 Time scope ......................................................................................................................... 4

1.6 Significance of the study ....................................................................................................... 5

1. 7 Conceptual framework of the study ...................................................................................... 5

CHAPTER TWO .......................................................................................................................... 6

LITERATURE REVIEW ............................................................................................................ 6

2.0 Introduction ........................................................................................................................... 6

2.1 Benefit of computerized accounting; .................................................................................... 6

2.2 Levels of financial performance ......................... .................................................................. 9

2.3 Relationship between computerized accounting and financial performance ...................... 12

VI

CHAPTER THREE .................................................................................................................... 17

RESEARCH METHODOLOGY .............................................................................................. 17

3.0 Introduction ......................................................................................................................... 17

3.1 Research design ....... ........................................................................................................... 1 7

3.2 Study population ................................................................................................................. 17

3.3 Sample size ......................................................................................................................... 18

3.4 Sampling method or technique ........................ .................................. ................................. 19

3.5 Data collection method ............ ........................................................................................... 19

3.5.1 Questionnaire .......... ................................................................................ ... , ..................... 19

3.5.2 Interview guide ...................................... .......................................................................... 19

3.5.3 Documentary review ................................................... ..... ............. .............. ..... ................ 19

3.5.4 Observations .................................................................................................................... 20

3.6 Reliability and validity of data collection instrument.. ....................................................... 20

3.7 Data processing and analysis ....... ................ ....................................................................... 20

CHAPTER FOUR ....................................................................................................................... 21

OAT A ANALYSIS, PRESENTATION AND INTERPRETATION OF FINDINGS .......... 21

4.0 Introduction ........................... ......................... ..................................................................... 21

4. 1 The background characteristics of the respondents ....................................................... ..... 21

4. 1.1 Age of the respondents .......... ...... ..................................................................................... 21

4.1 .2 Sex of the respondents ..................................................................................................... 22

4.1.3 Level of education ............................................................................................................ 22

4.1.4 Respondents working experience .................................................................................... 23

4.2. 1 The organization's accounting system is computerized .................................................. 23

4.2.2 Computerized accounting packages ....................................................... .......................... 24

4.2.3 Benefits of computerization of the accounting system .................................................... 25

4.3Levels of financial performance .................................... ...................... ................................ 27 .

4.3.1 A change in levels of financial performance ................................................................... 27

4.3 .2 The respondents' thinking on the level of financial performance ................................... 27

4.3.3 How do you rate the financial performance of JDLG? .................................................... 28

Vll

4.3.4 The financial performance of JDLG is having gaps and loopholes and it needs attention.

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4.4 Computerized accounting and financial performance ........... ............................................. 29

4.4.1 Response on whether computerized accounting has an effect on financial performance 2,9

4.4.2 The relationship of computerized accounting system and financial performance ........... 30

CHAPTER FIVE ........................................................................................................................ 32

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS ................... 32

5.0 Introduction ....................................................... ..... ............................................................. 32

5.1 Summary offindings ................................. .......................................................................... 32

5.1.1 The benefit of computerized accounting to the organization ........................................... 32

5.1.3 Relationship between computerized accounting and financial performance ................... 33

5 .1.4 Levels of financial performance ................................................................. ........... .. ........ 3 3

5.2 Conclusion .......................................................................................................................... 33

5.3 Recommendations ............................................................................................................... 34

REFERENCES ........................................................................... ......... ......................................... 35

APPENDIX I ................................................................................................................................ 36

RESEARCH QUESTIONNAIRE .. .............................................................................................. 36

APPENDIX II .............................................................................................. ................................. 40

INTERVIEW GUIDE FOR THE RESPONDENTS .................................................................... 40