With the advent of computer-based accounting system, accountants have to cope with the resulting complexity of the flow of information through the accounting systems. Traditional accounting procedures did not accommodate the sophisticated processing devices that came with the computer-based accounting system. As the design of the computer based accounting system advanced from simple clerical automation to complicated integrated information systems, the accountant could no longer perform his duties around the computer but found it necessary to develop procedures to cope with the new challenges. Furthermore, the traditional accountant was not trained in the special languages and devices used in the computer based system.
As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitations of the Study and Definition of technical terms.
1.2 Background of Study
The world has recently witnessed a remarkable technological development, a revolution in communications and information and the development of computers and the Internet, and these rapid developments in the world in the information revolution reflected their impact on all different fields of life, these systems have become the focus of attention of many enterprises, because of their A large role in the development of enterprises, where the use of modern technology and advanced computer technologies led to the development of information systems from traditional manual systems to modern computerized systems, as these systems addressed all the problems faced by traditional systems (Etzioni, 2016). The computerized system plays an important and prominent role within the establishments as an important source in the production of information on the basis of which administrative decisions are taken.
Currently, most organizations continue to increase spending on information system and their budgets continue to rise. However, economic conditions and competition create pressures about costs of information. Accounting information therefore, is the information derived from the financial accounting report. The essence of this information is for management and other users to make decisions. Therefore, the accuracy of decision making depends on the effective and efficient design of management information system. The accounting concerned prepares the financial accounting information in such a way that will enable users to derive maximum information for their use.
The utilization of computer based accounting information system (AIS) effectiveness is extensive spread of information required by various users of the organization. It has an effect on the decision making and assists organization administrative co-ordination in the organization. It is thus founded that effective decision making is important to organizational performance thereby increasing profit. This basically describes the link in between the utilization of Accounting information system and organizational performance. Taking into consideration the Situation in Jordanian banking sector, current issue are the adaptable investment trend as well as the adopting of electronic technologies in the banking sector (Al-Majali, 2011).
It is good to mention that the use of information is not limited to a particular manager or a department, but all administrative levels need to use information, which increases the importance of management information systems in the organization. Accounting information is known as a system for collecting and recording, storing, and processing data to produce information for the decision makers (Romney & Steinbart, 2009).
Therefore, in Nigeria where the research was carried out, the activities that was conducted is to examine the Importance and Relevance of Computer in Accounting Sector.
1.3 Statement of Problems
Investigation revealed that information system is developed using information technology to help an individual from performing their task. Therefore, most companies focuses on developing information system in order to support decision system, communication, knowledge management, as well as many others. The key part of this information system needed for decision making in companies is accounting information system.
Today, information technology and increasingly transparent financial sectors have become key deriving forces in business operations, strategies, structures, ownership and profit making. This forces cut across many industries to force changes that, in turn, have had significant economic and social impacts on the organizational effectiveness. Structurally, the emerging information technology industry is uncharacteristic of typical traditional process which has gradually gone out of the need to increase efficiency and cut on operations costs thereby increasing profit in companies. Therefore, the study seeks to examine the Importance and Relevance of Computer in Accounting Sector.
1.4 Aim and Objectives of Study
The aim of the study is to examine the Importance and Relevance of Computer in Accounting Sector using Cadbury Nigeria PLC as a case study. In achieving this aim, the following specific objectives were laid out as follows:
- To examine the effect of computer in accounting sector on profitability.
- To ascertain the effect of sales volume on profitability.
- To determine the effect of capital structure on profitability.
- To examine the effect of expenses on profitability
- To make recommendations which may enhance the employment of information provided by accounting system
1.5 Research Questions
The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:
- What is the effect of computer in accounting sector on profitability?
- What are the effects of capital structure on profitability?
- What are the effects sales volumes on profitability?
- What are the effects of expenses on profitability?
1.6 Research Hypothesis
In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.
- H0: There is no significant relationship between computerized accounting and profitability on accounting sector in Nigeria
- H1: There is a significant relationship between computerized accounting and profitability on accounting sector in Nigeria
1.7 Significance of Study
This study will be significance to companies in Nigeria in terms of determining the benefit accruing due to the integration of accounting information system in their operations. Accounting information system provide information about the financial resources, obligation and activities of an enterprise that is intend for use primarily external decision makers (investors and creditors).
Lastly, the study will also be useful to other researchers interested in the problem under investigation as the study has laid a platform on which furthers studies related to the subject can be undertaken.
1.8 Scope of Study
The scope of the research is focused on the Importance and Relevance of Computer in Accounting Sector using Cadbury Nigeria PLC as a case study.
1.9 Limitations of the Study
During the course of this study, many things militated against its completion, some of which are:
- Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Research material: availability of research material is a major setback to the scope of the study.
- Frequent power failure: This made the researcher append more money on fuel to ensure sustainable power.
- Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).