Accounting information system and decision making in selected banking institutions in Kampala Uganda
Loading...
Date
2023-11
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Kampala International University, College of economics and management
Abstract
The study examined accounting information system and decision making in Selected Banking institutions in Kampala Uganda. It was guided by three specific objectives that included; (i) determining the effect of computerized accounting information system on decision making of selected Banking institutions in Kampala, Uganda; (ii) establishing the effect of manual accounting information system on decision making of selected Banking institutions in Kampala, Uganda and (iii) to establish the effect of system control on decision making of selected Banking institutions in Kampala, Uganda. This study employed cross-sectional, survey and descriptive research design to describe the variables. The questionnaire and Interview guide were used to collect data. The study population was 138 with a sample size of 103. Descriptive and inferential statistics were used in this study. The findings indicated that computerised accounting information system contributes to the decision making (F-value=136.963 and Sig-value=.000); the findings revealed that improvement in manual accounting information system it can lead to an improvement in the level of decision making (F-value=13.955 and Sig-value=.000), and lastly good system control can increase the level of decision making (F-value=108.275 and Sig-value=.000). The conclusions were that; computerised accounting information system provides real-time information, which means that managers can make decisions based on the most up-to-date financial data, hence allowing for more efficient and effective decision-making among the Banking institutions in Kampala, Uganda. Manual accounting information system greatly affects decision making in banking institutions by being time-consuming, prone to errors, having limited reporting capabilities, lacking integration with other systems, and providing limited financial analysis capabilities. The researcher recommended that: Banking institutions should conduct a thorough assessment of the current Computerized Accounting Information System to identify areas for improvement. The ICT bank manager should make sure that the hardware and software being used for the Computerized Accounting Information System is up-to-date and meets the needs of the bank. The Banking institutions should establish internal controls to prevent errors, fraud and embezzlement. Still the banking institutions should standardize accounting procedures and processes to ensure consistency and accuracy in financial reporting. This can be achieved by creating a manual that outlines procedures and guidelines for recording and reporting financial transactions. The study contribute to knowledge in a way that it provides a localized perspective on the impact of AIS on decision-making within the unique context of Kampala, Uganda. This is crucial as the effectiveness of AIS can be influenced by specific cultural, regulatory, and economic factors, which may differ from other global contexts. The study identifies and analyzes specific challenges faced by banking institutions in Kampala regarding AIS implementation and its impact on decision-making. This contributes to a deeper understanding of the hurdles that organizations may face in leveraging AIS effectively. Simultaneously, the identification of opportunities highlights areas where improvements can be made to enhance decision-making processes. By focusing on the integration of AIS with existing processes and technologies, the research sheds light on the practical challenges faced by banking institutions in Kampala. This information is crucial for policymakers and industry practitioners seeking to streamline integration processes and maximize the benefits of AIS. The study explores the role of user competence and training in influencing the success of AIS in decision-making. This insight contributes to the understanding of the human factor in technology adoption and suggests potential interventions for improving staff training programs to optimize AIS utilization.
Description
A research dissertation presented to the college of economics and management in partial fulfilment of the requirements for the award of the degree of master of business administration (finance & accounting) of Kampala International University
Keywords
Accounting, Information, System, Decision making, Banking institutions, Uganda