INTRODUCTION
1.1
BACKGROUND OF THE STUDY
Today’s modern technology
brought into use the computer, this technology is the application of science to
gathering, recording, processing and communicating of business information by
means of electronic media. Most commonest tool for application is the computer
and it involves all the transaction processing system management information
system various business support system etc. The computer is a central force in
the advancement of various organization. The historical development of computer
started with Hollerith punched card of
1880,Goerge Alken calculator and Charles Babbage’
creation of the difference engine.
The computer can be defined as a tool or
device which is able to accept facts (data) and figure in a prescribed form,
apply prescribed processes to data and supply result of the processes in a
specified format as a meaningful information. There are also different types of
information depending on the make or type of
their functions. The revolution in technology to the
computer complements or in the other hand, substitute for ten elements which
are: - paper, personal memos, charts, reports, calculators, terminals letter.
Hartzell (2006) defines
computer as an electronic machine for processing information automatically and
very quickly. The important of computers is the ability to handle vast amount
of information and to do other processes with accuracy and speed which cannot
be manually undertaken have been recognized and appreciated by financial
institutions, hence the trend in the computerized of banking operations.
Tanembaum (2010) sees computer as a machine
that can solve problems for people by carrying out instructions given to it.
The American Accounting
Association defines accounting as the process of identifying, measuring and
communicating economic information to permit informed judgement and decision by
users of the information. Accounting is also the establishment, maintenance,
collection and analysis of financial position of an
organization and any changes that have occurred or may
occur overtime.
Omolehinwe (2009) defines
accounting as the collection and recording of financial data about an
organization whether in the private or in the public sector and analyzing the
data so collected to suit the decision that needs to be taken and reporting the
relevant information in a summary form to the user in a form that is meaningful
to him or her.
Chionye (2003) defines accounting system as
the art of identifying, recording, classifying measuring and interpreting in a
significant manner the financial transaction of an organization for decision
making. Summarizing from time to time the information contained in the record,
for its significant presentation and interpretation to interested parties as an
aid to decision making.
Accounting system is also defined as a
consistent way of organizing, recording, summarizing and reporting financial
transactions.
Computerization is the installation of computers as a
part of a process of automation.
Banking in Nigeria has
witness impressive development in recent time particularly within the last
decade in time with growth in economic activities and complexities, banking
service have expanded significantly in size and variety due to increased by
computerization of banks.
1.2 STATEMENT OF THE
PROBLEM
In spite of the benefit of
computer to banking industry and business generally some problem are still left
unsolved and new ones have been credited by the use of computer itself problems
like;
The use of computer
to keep accounting records.
Another problem is the displacement of labour
hands in the accounting department and its union implication and the problem of
low turnover (volume of operation) and profitability in banks.
1.3 OBJECTIVES OF THE
STUDY.
The objectives of
this study are:-
§
To determine he relationship between the
application of the manual accounting system and the computerized accounting
system
in the banking system.
§
To find out, whether the effect of
computerized accounting system enhances higher turnover (volume of operation)
and
profitability
in banks.
§
To examine the impact of using computer
to keep accounting records.
1.4 RESEARCH QUESTIONS.
To be able to achieve the above purposes,
some questions would be asked which help the researcher to gather the necessary
information needed, they are:
§ Are
there any relationship between the manual accounting system and the
computerised accounting system in the banking industry?
§ Also
can computerized accounting system enhance high turnover and profitability in
banks?
§ Finally,
What are the effects of using computers to keep accounting records?
1.5 HYPOTHESES OF THE
STUDY
In order to ensure the
verification and validation of the primary data gathered through administration
of questionnaires. A research hypothesis is formed comprising the null
hypothesis (Ho) and the alternative hypothesis (Hi).
Hypothesis One
Ho: - There is no
relationship between the application of the
Computer
and manual system in the accounting system of banking industry
Hi: - There is a relationship between the
application of the
Computer
and manual system in the accounting system of the banking industry.
Hypothesis
Two
Ho:- The impact of
computerized accounting system does not
enhance higher turnover and profitability in
banks.
Hi:- The impact of computerized accounting system
enhances
higher turnover and
profitability in banks.
Hypothesis Three
Ho:- There is no
effect of using computer to keep accounting
records.
Hi:- There is an
effect of using computer to keep accounting
records.
1.6 SIGNIFICANCE OF
THE STUDY.
Most banks have growth and
continuity as part of their objective, and such objectives are best realized by
an efficient management, as well as effective computerized accounting system.
This has made it possible for banks to gain inherent advantage while minimizing
risks involved in their daily operations.
This research project will
therefore be of immense advantage or benefit to the management of banks,
computers and other business organization using computerized accounting system.
Hence, the theories and concept contained therein can be infused into their
management system.
This research will also contribute to enhance
efficiency in
the following ways;
a)
Speedy and accurate decision making through
the use of computerized accounting system.
b)
Improvement
in the delivery and quality service.
c)
The
banks profitability will be improve.
Firstly, in the realm of academic, the
project will be very useful to wide audience as it applies to courses in
accountancy, banking and finance as well as executive development courses,
management seminars and supervisory workshop conducted in colleges and
universities.
1.7 SCOPE AND
LIMITATIONS OF THE STUDY.
The scope of the study is restricted to
examining the effect of computerized accounting system on the performance of
banking industries such as, Diamond bank plc, Eco bank plc and First bank plc
all in Enugu metropolics of Enugu state.
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