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
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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
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