The Impact Of Computer In Processing Accounting Information In Nigeria Commercial Banks

Get the Complete Project Materials Now! »

THE IMPACT OF COMPUTER IN PROCESSING ACCOUNTING INFORMATION IN NIGERIA COMMERCIAL BANKS

ABSTRACT The impact of Computer to Nigeria Commercial Banks especially Union Banks Plc cannot be over emphasized. Many banks have realized the used of the computer as a means of improving their chequeing transaction and of keeping necessary data on customers for loans advances and other services. These obvious advantages notwithstanding, must banks have not imbibe the computer culture. For the purpose of this study, this research was based on commercial banks in Nigeria and occasionally drew emphasis from the Union Bank of Nigeria Plc, Head office Enugu Branch. This study therefore showed the actual contribution of computers to the banking industry and the problem faced by banks, which has not gone into computerization. A good number of banks in Nigeria are computerized and consequently time wastage in banks are reduced, there is increase in banks deposit, there is better storage of information and greater efficiency in banks deposit, there is better storage of information and greater efficiency in banks services, there is reduced workload in banks.
9
The researcher used both primary and secondary data. The primary sources will include the use of questionnaires while the secondary data will include text books, article and other important write-up in various journals. It is expected that the implementation of the findings and recommendations in this research work ill improve the services rendered by banks to their various customers by increasing usage of computerized services personnel training and encouraged computer. ITC programmes to boost the activities and operations of banks aimed at enhancing and optimizing services to the customers.
10
TABLE OF CONTENTS Title page Certification Dedication Acknowledgement Abstract Table of Contents CHAPTER ONE: INTRODUCTION
1.1 Background of the Study
1.2 Historical Background of Union Bank of Nigeria Plc
1.3 Statement of Problem
1.4 Objectives of the Study
1.5 Hypothesis of Research Questions
1.6 Significance of the Study
1.7 Scope and Limitations of Study
1.8 Definition of Terms
References
11
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1 A Brief Loot at Accounting, its Past, Present and Future
2.2 Evolution of Computer
2.3 The Basic Elements of a Computer System
2.4 The Evolution of Commercial Banks and its Operations in Nigeria
2.5 The Application of Computer to Banking Operation
2.6 System Design Development
2.7 Principles of Accounting System
2.8 Accounting Information System Concept
2.9 The Growth of Computer in Nigerian Banks
2.10 The Effect of Information Technology on the Growth of the Banking Industry in Nigeria
2.11 Hindrance to Computer/ IT Application in Nigerian Commercial Banks
2.12 Computerized Budgeting System and Use of Computer in Analysis
2.13 Accounting Software
2.14 Computerized Accounting Systems
2.15 Peach Tree Accounting
2.16 Internet Banking
12
2.17 Electronic Payment System: The Role of Banks in Electronic Commerce
2.18 The Role of Accountants in our Banking Industry‟s Decision Making Process
References CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Research Design
3.2 Area of Study
3.3 Population of Study
3.4 Sampling Method
3.5 Source of Data
3.6 Method of Gathering Data
3.7 Questionnaire Design
3.8 Tool for Statistical Analysis
References
13
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
Introduction
Presentation of Data from Research Questions
Hypothesis Testing
Conclusion of Data Analysis
CHAPTER FIVE: SUMMARY OF FINDINGS, RECOMMENDATIONS AND CONCLUSION
Summary of Findings
Recommendations
Conclusions
Bibliography Appendix A Questionnaires
14
CHAPTER ONE INTRODUCTION Financial accounting can be defined as the process of collecting, recording, presently and analyzing and interpreting financial information for the users of financial statement [Robert, O. Igben 2007] Accounting is the language of modern business, a tool for business decision making. It is used by people associated with business, whether they are managers, owners, investors, bankers, lawyers, and accountant. It provides financial information to people inside and outside the organization who need and are authorized to have such information. A system like a computer in the most general sense of the word is a group of interrelated components that processed inputs into outputs to meet some objectives. An accounting information system is a group of components that processes raw data into financial information to meet the purpose of these internal and external users, however, when we talk of accounting information system we invariably refer to computer assisted techniques in accounting [Warren, 1997].
15
The objective of financial information is to provide useful information for making economic decision. The process of recording, aggregating and summarizing the effects of historical transactions in financial statements under a specified set of rules constitutes the bulk of financial accounting. Organizations such as commercial banks need the accounting information in carrying out their operations and transaction. Fortunately, the electronic computer as an electronic device for storing and analyzing information fed into it, for calculate or for controlling machinery automatically could be used to perform commercial banking products and operations and also aids managerial decision makers in planning and controlling of various business activities [Warren, Reeve, Fess, 1997].
1.1 BACKGROUND OF THE STUDY
Accounting information poses certain qualities necessary to satisfy user‟s need. Two basic qualities for general purpose accounting reports supplied to external user are:
- Relevance
- Reliability
16
It is important to realize that for the information to be of any use to management or external users, it has to be targeted at a specific decision. It is in this sense that the information may said to be relevant or pertinent to the decision. Relevance of accounting information is judged in relation to the user‟s situation. Also, accounting information signifies faithfulness, constancy and trustworthiness. As stated by Mandadur R. and Maurice H in their book Accounting Information System [1976] page 9, one way of ensuring reliability in accounting information is to ensure adherence to accounting principles. Also R. W. Hilton and S. J. Swearing in perception of initial uncertainty as a detriment of information value [pg. 109-119] stipulated that „the value of any accounting information depends on its accuracy and its ability to reduce uncertainty”.
Accounting information is useful in all types of organizations especially the banking industry where the survival and growth of such organization depends to a large extent, on supplying effective accounting information to internal and external users. The size of an organization determines the appropriate volume and complexity of accounting information for managerial decisions in such areas as purchasing, protection, hiring, borrowing and investment. The
17
computer was initially introduced into most corporate organizations to satisfy the efficiency concerns of processing vast amounts of accounting transaction data at the operational control level. It has proved so effective in the role that virtually no sizable organization can survive competitive pressures without using this tool called the computer. Throughout the 1970‟s computer technology limited the production of accounting information to predetermined formats. The introduction of micro computers in the early 1980‟s brought about rapid rise in the computer at all levels of management and contributed to the development of a new class of programs aimed specifically at meeting the needs of strategic management. Donald H. Sanders in his book “Computer in Society” assets that “that scope of today‟s accounting information system is influenced by the rapid growth of information processing technology and increased complexity of business in general. Thus, the accounting information of the foreseeable future must establish and maintain the capability for complex manipulation of vast volume of financial and non-financial data with higher speed and greater accuracy.
18
The enhanced power of data handing in a complex environment has altered the character of accounting system. The accounting system of the past was a little more than book-keeping which relied on electronic devices of limited capability and required a great deal of human involvement as almost every step of the process. Such an accounting information system was not able to cope with the dynamic challenged of business complexities. Its products were unable to satisfy user‟s needs for planning and controlling information. The primary concern of the accounting information system was to manipulate historical data, satisfy audit needs, produce after that fact financial statement and provide preformatted reports for managerial use.
Today‟s accounting information system deals with future events as well as historical data. It must produce projected financial statements as well as historical ones. It must support unanticipated managerial needs for financial information for decision making, in addition to satisfying the needs of auditors. It must develop new and efficient controls, reporting techniques and audits trials in response to the trends towards increasing public access to accounting data reports. For instance, consider the monthly statements provided to
19
bank customers. These must incorporate detailed information about numbers transaction [ranging from cash and cheques deposit, interest charge, tax charges and withdrawal] performed in a variety of ways from a number of locations. A bank cannot survive today without providing this level of services, yet the capability to do so did not exist a few year ago. However, the advent of the computer has some of its attendant problems. These are training of personnel and finance costs. In conclusion, the computer contributes to increased output, by increasing efficiency and its ability to perform predetermined tasks, faster and more accurately.

Get Full Work

Be the First to Share On Social


Report copyright infringement or plagiarism


1GB data