Accounting system and financial reporting in microfinance institutions, a case study of masaka microfinance & development cooperative trust (mamidecot):

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Date
2019-09
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Publisher
Kampala International University, College of Economics and Management.
Abstract
The researcher investigated “Accounting system and financial reporting in micro finance institutions”. The study was guided by three research objectives which were; to find out the accounting systems used by the micro finance institutions, to find out the procedures involved in financial reporting in micro finance institutions and lastly, to find out the effect of accounting system (computerized) on finance reporting in rnicro finance institutions. The methodology involved the use of a cross sectional research design were data collected once from a cross section of respondents was selected. Both qualitative and quantitative approaches were used in data collection and analysis. The study population constituted of the managers and accountants from MAMIDECOT. The data collection instruments involved the use of questionnaires and Interviews. The findings revealed that the Accounting systems used in MAMIDECOT are Managerial accounting systems, computerized accounting system, Inventory accounting systems, Industry-specific accounting systems. The Procedures used in financial reporting includes entering data into the financial database (FDB) and into the Account, Data is read and merged, the results are obtained after merging, determination of the balance method. Lastly, financial statement items are obtained. The effects of computerized accounting system on financial reporting in MAMIDECOT include but not limited to increasing speed of carrying out routine financial transactions, ensuring timeliness that leads to timely delivery of financial reports to the top managers and facilitation of quick analysis of financial reports. The researcher recommended that organizations which undertake the use of Computerized accounting systems should create back up of all their operations to limit the possibility of total loss in case of virus attacks.
Description
a research report submitted to the college of economics and management partial fulfillment for the requirement of the award of a bachelor’s degree in accounting and finance of Kampala international university.
Keywords
Accounting system, financial reporting, micro finance institutions
Citation