Computerized Accounting System In The 21st Century Nigeria: Problem And Prospects

Abstract

The main purpose of this study is to assess the computerized accounting system in the 21st century Nigeria problem and prospects. A survey research design was adopted, the population comprises all the members of staff of the Federal Ministry of Finance, Abuja, a simple random sampling technique was used to select 28 respondents for the study and a questionnaire was the instrument for data collection. A mean score rating method is used to analyse the data based on the 2.5 acceptance region format to answer the research question, while to address the research hypothesis, the chi-square was used. The study focuses on the computerization of accounting systems in Nigeria. The results show that the benefits of computerization in relation to the TSA in Nigeria include that it allows the government and regulatory agencies to see the MDA"s financial position in "real-time"; computerized systems can also provide instant reports; it is helpful in the customer accounts and the payroll system; transactions need to be input only once; with little training anyone can handle the system; it helps in streamlining the treasury single account system; Using a computerization accounting system can save you time and that computerization systems also allow you to improve inventory control and payment collection. Government should ensure the security of the Nigerian cyberspace.

Chapter One

Introduction

1.1 Background to the Study

Accounting system is a system designed to record accounting transaction involving a business or event taking into cognizance the policies of the firm. According to Hartzell (2006) accounting system is the process of organizing, summarizing, recording and reporting financial transactions with the view of providing financial information to management to facilitate policy decisions, budgeting, preparing financial report and other financial approvals. Accounting system is viewed as formal systems which identify measure, accumulate, analyze, prepare, interpret and communicate accounting information of a business organization or institution.

Ama (2004). Accounting system is regulated by the organizations policies, rules, regulations, methods, procedures and techniques.

Accounting systems constitute the mechanism adopted for gathering and communicating the financial performance and position of the organization. The two major types of Accounting System include Manual Accounting system and Computerized Accounting System. The manual system involves the use of hand for the posting of accounting information into the various books of accounts of the firm. The computerized system involves the use of specialized machines as computer in gathering and processing of accounting information. It is also referred to as Electronic Data Processing (EDP) Accounting System. The applications of computer in accounting system involves the use of Word processor, Data base and Spread sheet .The research therefore seek to investigate Computerized accounting system in the 21st century Nigeria problem and prospects. Case Study of TSA -Accounting

1.2 Statement of the Problem

The accounting system is besetted by some deficiencies. For example the computerized accounting system is exposed to the risk of data theft and loss either as result of power failure or from hackers. It is also exposed to fraud by those who can secretly have access to the system. Customer information could be tampered with in the process thereby leading to security breach. The management could be deterred in some cases where there is loss of data in executing legitimate projects and decision making. According to Vermaat and Shelly (2011) computers related problems include health risks, the violation of privacy, public safety, the impact on the labor force, and the impact on the environment. Therefore the problem confronting the research is to appraise the Computerized accounting system in the 21st century Nigeria problem and prospects. Case Study of TSA -Accounting

1.3 Objectives of the Study

To determine the nature, problems and prospect of Computerized accounting system in the 21st century Nigeria

To appraise the nature, problem and prospects of TSA computerized accounting in the 21st century Nigeria.

1.4 Research Questions

What is the nature, problem and prospect of computerized Accounting

What is the nature; problem and prospect of TSA computerized Accounting

1.5 Significance of the Study

The study shall proffer a structural appraisal of computerized accounting system in the 21st century Nigeria problem and prospects. Case Study of TSA

1.6 Research Hypothesis

Ho The problem of TSA Computerized accounting system is Low
HI The problem of TSA Computerized accounting system is high

Ho The prospect of TSA Computerized accounting system is Low
Hi The prospect of TSA computerized accounting system is high

1.7 Scope of the Study

The study focuses on the appraisal of computerized accounting system in the 21st century Nigeria problem and prospects. Case Study of TSA

1.8 Limitations of the Study

The research was confronted by some constraint including logistics and geographical factors

1.9 Definition of Terms

Acconting System Defined

Accounting system is a system designed to record accounting transaction involving a business or event taking into cognizance the policies of the firm. According to Hartzell (2006) accounting system is the process of organizing, summarizing, recording and reporting financial transactions with the view of providing financial information to management to facilitate policy decisions, budgeting, preparing financial report and other financial approvals. Accounting system is viewed as formal systems which identify measure, accumulate, analyze, prepare, interpret and communicate accounting information of a business organization or institution.

Ama (2004). Accounting system is regulated by the organizations policies, rules, regulations, methods, procedures and techniques.

Accounting systems constitute the mechanism adopted for gathering and communicating the financial performance and position of the organization

Computerized Accounting Defined

The two major types of Accounting System include Manual Accounting system and Computerized Accounting System. The manual system involves the use of hand for the posting of accounting information into the various books of accounts of the firm. The computerized system involves the use of specialized machines as computer in gathering and processing of accounting information. It is also referred to as Electronic Data Processing (EDP) Accounting System. The applications of computer in accounting system involves the use of Word processor, Data base and Spread sheet.

Chapter Five

Summary, Conclusion and Recommendations

5.1 Summary

This study focused on the computerized accounting system in the 21st century Nigeria: problems and prospects. A case study of the TSA- accounting. The study was set to address three objectives and one research hypothesis.

The objectives which include;

To determine the benefits of computerized accounting system in relation to TSA in Nigeria

To identify the disadvantages of the computerized accounting system in relation to the TSA in Nigeria

To find out the limitations of the computerized accounting system in the implementation of TSA in Nigeria

Based on the above stated objective and the study carried out, the following findings were made:

That the benefits of computerized accounting system in relation to the TSA implementation in Nigeria include that it allows the government and regulatory agencies to see the MDA"s financial position in "real-time"; computerized systems can also provide instant reports; it is helpful in the customer accounts and the payroll system; transactions need to be input only once; with little training anyone can handle the system; it helps in streamlining the treasury single account system; Using a computerized accounting system can save you time and that computerized accounting systems also allow you to improve inventory control and payment collection

That the disadvantages of the computerized accounting system include that data can be lost through power failure; that viruses can attack the network or the system and it could affect the whole system; the danger of hackers stealing data; if there is a security breach, data can be stolen; computer fraud and that a mistake in data entry can throw off a whole set of data.

That the limitations of the computerized accounting system on the implementation of the TSA in Nigeria include but not limited to cost of training; staff opposition to the TSA; disruption; poor internet connection; system failure and ill effect on health of the excessive use of computers.

5.2 Conclusion

The main purpose of this study is to assess the computerized accounting system in the 21st century Nigeria problems and prospects. A case study of TSA. Three research questions and one research hypothesis guided the study

In this study, a survey research design was adopted, the population comprises all the members of staff of the Federal Ministry of Finance, Abuja, a simple random sampling technique was used to select 28 respondents for the study and a questionnaire was the instrument for data collection. Relevant literature were reviewed which guided the objectives and methodology of this study. As result of the field study and analysis of results, the following findings were made:

That the benefits of computerized accounting system in relation to the TSA implementation in Nigeria include that it allows the government and regulatory agencies to see the MDA"s financial position in "real-time"; computerized systems can also provide instant reports; it is helpful in the customer accounts and the payroll system; transactions need to be input only once; with little training anyone can handle the system; it helps in streamlining the treasury single account system; Using a computerized accounting system can save you time and that computerized accounting systems also allow you to improve inventory control and payment collection

That the disadvantages of the computerized accounting system include that data can be lost through power failure; that viruses can attack the network or the system and it could affect the whole system; the danger of hackers stealing data; if there is a security breach, data can be stolen; computer fraud and that a mistake in data entry can throw off a whole set of data.

That the limitations of the computerized accounting system on the implementation of the TSA in Nigeria include but not limited to cost of training; staff opposition to the TSA; disruption; poor internet connection; system failure and ill effect on health of the excessive use of computers.

5.3 Recommendations

Based on the findings of this study, the following recommendations are made:

The relevant staff that handle the accounting system in all the federal MDAs should be properly trained

Government should ensure the security of the Nigerian cyberspace.

TSA should be implemented strictly in all the government agencies and parastatals.

Computerized Accounting System In The 21st Century Nigeria: Problem And Prospects

Abstract

Chapter One

Chapter Five

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