ABSTRACT The study examined the relationship between Accounting information system and financial performance in Banque Populaire de Rwanda and it was based on six specific objectives: (a) to determine respondents’ profile in terms of gender, age, level of educational, position and experience; (b) level of accounting information system; (c) level of financial performance; and (d)to determine if there is a significant difference in the level of AIS in terms of accounting information and financial reporting according to relevant profile variable; (e) to establish if there is a significant difference in the level of financial performance in terms of profitability, liquidity and growth according to relevant profile variables; (f) to establish if there is a significant relationship between the levels of Accounting information system and financial performance in selected financial institutions in Rwanda. The study used a descriptive correlation research design. SAQ were used to collect primary data from 100 out of 134 employees, using simple random sampling. Data analysis was done using SPSS’s frequencies and percentages; means and PLCC. Findings revealed that majority of the respondents were male, falling in the age bracket of 20 — 30 years, with bachelor’s degree, and experience between 2 — 4 years. Means showed that both the level of accounting information system implementation and the level of financial performance of BPR Bank were satisfactory. PLCC revealed a positive and significant relationship between accounting information system implementation and the level of financial performance of BPR while regression analysis showed that accounting information system contributes 88% to financial performance. Basing on the above findings, the researcher made the following recommendations: (i) financial institution should increase the rate and preparedness to meet their current liabilities, (ii) the percentage of business profit retained for expansion purposes need to be increased, (iii) Business plans to list on the stock exchange in future need to be handled sophisticatedly , (iv) on the time capturing and accurately recording transactions need to be emphasized all the time (v) Budgets should be prepared to forecast operations and compare estimate with actual results, and (vi) accounting policies adopted need to be applied consistently.

TABLE OF CONTENTS

Preliminary pages Page

Declaration A

Declaration B ii

Approval Sheet iii

Dedication iv

Acknowledgement v

Abstract vi

Table of contents vii

List of Tables x

List Acronyms xi

ONE PROBLEMANDITSSCOPE 1

Statement of the Problem 4

Purpose of the Study 4

Research Objectives 4

General Objective 4

Specific Objectives 5

Research Queztions 5

Hypothesis 6

Scopeofthestudy 6

Significance of the Study 6

vii

Operational Definition of Key terms 7

TWO REVIEW OF RELATED LITERATURE 8

Concepts/Ideas from Authors and Experts 14

Theoretical Perspective 14

Related studies 15

THREE METHODOLOGY 17

Research Design 17

Study Population 17

Sample Size 17

Sampling Procedure 18

Research Instrument 18

Validity and Reliability of the Instrument 18

Data Gathering Procedure 20

Data Analysis 20

Ethical Consideration 21

Limitations of the Study 21

FOUR ANALYISIS AND INTERPRETATION OF DATA 23

Respondents Demographic Characteristics 23

Level of Accounting Information System 25

Level of Financial Performance 28

Differences in the level of AIS according to gender and experience 29

Differences in the level of~financial performance according to gender and

experience 31

viii

Relationship between Accounting Information Systems and Financial

Performance 33

FIVE FINDINGS, CONCLUSIONS AND RECOMMENDATION 36

Summary of Findings 36

Conclusion 37

Recommendation 38

Areas for Further Research 39

REFERENCES 40

APPENDICES 42

Appendix IA : Transmittal Letter 42

Appendix TB: Transmittal Letter 43

Appendix TI: Informed Consent 44

Appendix III: Research Instrument 45

Appendix IV: Content Validity Index 49

Appendix V: Reliability Test 51