Computerized accounting systems and financial performance of commercial banks in Kampala: a case study of DFCU bank- Nsambya Branch
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Date
2014-04
Authors
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Journal ISSN
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Publisher
Kampala International University, College of Economics and Management
Abstract
As the intensity of computer use in business has greatly improved over the years, this
has helped commercial institutions to improve on their overall financial positions by
promoting transparency, accountability and efficiency through faster capturing,
processing and communication in information. However, despite the high levels of
computerization in place, banks are still un able to deliver real time services to customers
which result from high costs of employee training and programming procedures, high
initial costs of acquiring hardware and installation of computer systems. The purpose of
the study was to evaluate the influence of computerized accounting systems and
financial performance of commercial banks in Uganda. The study objectives were to
examine the application of computerized accounting systems on the performance in
commercial banks in Uganda, to establish the performance of commercial banks in
Uganda as well as to establish the relationship between computerized accounting
systems and the performance of the bank. The study used a cross-sectional research
design which was often used in assessing respondents' views towards the effects of
computerized accounting systems on financial performance of commercial banks.
The study results revealed that in spite of the costs and system failures, computerization
of accounting systems has a positive significance on the performance of the bank. These
positive impacts include reliability and regularity of reports produced quality information
and improved service delivery. Findings revealed that computerized accounting systems
lead to a considerable change in reduction of errors hence attaining accuracy, increased
business capacity and improved efficiency in terms of service delivery The researcher
recommends that accounting systems should be more computerized to a greater extent
and there should be proper training of bank staff on modern basic skills in computers and
management principles.
Description
Research report submitted to the School of Business and Management in partial fulfillment of the requirements for the Award of the Degree in Business Administration of Kampala International University
Keywords
Computerized, Accounting, Systems, Financial, Performance, Commercial banks