ABSTRACT

The research was on "computerised. accounting and preparation of financial reports", in Uganda a case study of Centenary Rural Development Bank Ltd Uganda (CERUDEB). The objectives of the study were; • To find out why CERUDEB had to computerize its accounting systems. • To establish the effectiveness of the computerized accounting system in CERUDEB. • To find out the impact of computerization of CERUDEB's accounting system on preparation of financial reports . • The scope of the study included the definitions, preparation of the financial statements (financial reports), traditional books of accounts, modular system, present level of computerization, implications for it's system design, acquiring a computerized accounting package and the impacts of the relationship between computerized accounting. Data was collected using primary data and secondary data. Primary data by use of questionnaires and interviews while secondary data by reading and analyzing published data, it was processed by using different analysis. Finding of the study reveal that computerized accounting systems have been beneficial to CERUDEB for the past three years. It was also found out using statistical kurtosis, Skews and Pearson Correlation Coefficient that there's a strong positive relationship between computerized accounting and preparation of financial statements. The recommendations of the study will help banks currently operating in Uganda to improve on their effectiveness when offering services to customers. 

TABLE OF CONTENTS 

DEClARATION ............................................................................................................... i 

APPROVAL .................................................................................................................... ii 

OED !CATION ............... ..... ............. ................................................................... ... ... ..... iii 

ACKNOWLEDGEMENT .................................................................................................. iv 

TABLE OF CONTENTS ................................................................................................... v 

LIST OF TABLE ................... ........................................................................................ viii 

LIST OF PIE CHARTS AND BAR GRAPHS ......................................... ............................... ix 

ABSTRACT" " ...................... " ....... "".""."" .. "".""" ...... " .. " .... "." ..... "" ... " .. " ." ............ X 

CHAPTER ONE ...... ......... ............................................................................................... 1 

1.0 Introduction ............................................................................................................ 1 

1.1 Background ............................................................................................................ 1 

1.2 Statement of the Problem ......................................... ............................................... 2 

1.3 Purpose of the Study ............................................................................................... 2 

1. 4 Objectives of the Study ........................................................................................... 2 

1.5 Research Questions, ............................................... ......................... .............. .......... 3 

1.6 Scope of the Study .......................................................... .......................... .............. 3 

1.7 Significance of the Study ......... ...................................................... ........ .................. 3 

1.8 Limitations of the computation ..................................................... .......................... 4 

1.9 Conceptual frame work .......................................................................................... 5 

CHAPTER TWO .................................................................................................... ......... 6 

Literature review ........................................................................................................... 6 

2. 1 Introduction ....................................................................................................... 6 

2. 2 Definitions .............................................................................................................. 6 

2.2.1 Computers ...... ............... ..... ........................................................................ ......... 6 

2.2.2 Accounting .......... ..... ...... ................................................................................. 6 

2.2.3 Activities within accounting .............................................................................. 6 

2.2.4 Financial accounting ........................................................................................ 7 

2.3.0 Preparation of Financial Statements (Financial reports) ...................................... 8 

v 

2.3.1 Profit and Loss Account ....... ............................. ............................................... 8 

2.3.2 Balance Sheet .......... ................ .................................... ................................... 9 

2.3.3 Funds flow ......................................................................................................... 10 

2.4 Traditional Books of Accounts ...................... ...................................................... 10 

2.5.0 Modular systems .. .......................................................................... .................... 11 

2.5.1 Typical Procedures and Facilities ......................................................................... 11 

2.5.2 Processing ................ .................... .................... .... ......... .................................... 11 

2.6.0 Present level of Computerization ......................................................................... 12 

2.7.0 Implications for it's System Design ...................................................................... 13 

2. 7.1 Integrity and error prevention ............................................................................. 13 

2.7.2 Other Systems ..................... .......... .................................................................... 14 

2.8.0 Acquiring a computerized accounting package ...................................................... 14 

2.8.1 Package: ............................................................................................................ 14 

2.8.2 General ................. ........ .............. , ...................................................................... 14 

2.8.3 Other Matters To Consider ................................................... ............... ................ 15 

2.8.4 Audit ... ..... ......................................................................................................... 15 

2.8.5 Why the system is used ............................................ .......................................... 15 

2.9.0 The impacts of the relationship between computerized accounting, .................. 16 

Financial statements and the impact of computers ........................................................ 16 

2.9.1 Conclusion ..... ...... ............. .... ....... .... .... ....... .... .......................... ......................... 17 

CHAPTER THREE ........................................................................................................ 18 

METHODOLOGY ............. ...................... ........................................................ ............... 18 

3.1 Introduction ................. ..... ............ ........................................................................ 18 

3.2 Research Design ............................ : ................................... ..... .............................. 18 

3.3 Study Population .............................. ..... ....... ................. ..... ............. ...................... 18 

3.4 Sampling Design .......... ......................................................................................... 18 

3.4.1 Sample size .................. ...................................................................................... 18 

3.4.2 Sampling Design and Procedures .... ..................................................................... 19 

3.5 Methods of Data Collection .......................................................... .......................... 19 

3.5.1 Primary data .... ..... ............................................ .................................. ............... 19 

3.5.2 Secondary data ................... .......... .. ...................... .... ..... ..... ........................ ....... 19 

3.6 Variables .......... ................... ......................................... ....................................... 19 

vi 

CHAPTER FOUR ................... ....................................................................................... 20 

DATA PRESENTATION AND INTERPRETATION ............................................................. 20 

4.1 Introduction ..................................................................... ..................................... 20 

4.2 Background information of respondents .......................................... .... .................. 20 

4.3 Findings on the nature of respondents ..... ............................................................... 21 

4.3.1 Duration in CERUDEB ................................................................................... ...... 22 

4.3.2 Objectives why CERUDEB computerised its accounting system .............................. 23 

4.4 Findings if CERUDEB had fully computerised it's accounting system .......................... 25 

4.5 Effectiveness and quality of CERUDEB's computerised accounting system ................. 25 

4.6 Researcher's finding in some key areas of interest. .................................................. 28 

4.7 Findings on whether the current accounting system has ever hindered the bank in its 

operations ......................... ......................................................................................... 29 

4.8 Researcher's findings for positive impact of computerisation on preparation of financial 

reports .. ..................................................................................................................... 30 

4.9 Negative impact associated with the current computerised accounting system .......... 31 

4.9.1 Findings on the relationship between computerised accounting and preparation of 

financial reports .. ......................................................... ............................................... 32 

CHAPTER FIVE ................................................................. ........ ................................... 33 

SUMMARY, CONCLUSIONS AND RECOMMENDATION .................................................... 33 

5.1 Introduction .......................................................................................... ................ 33 

5.2 Summary of Major Findings ................................................................................... 33 

5.3 Conclusion ............................................................................................................ 34 

5.4 Recommendations ................................................................................................. 37 

5.5 Areas For Further Research ................................................ .................................... 37 

REFERENCES .... .... .............. ........................................................................................ 38 

APPENDIX 1 ....... ......................... ................................................................. · ....... · ..... 40 

QUESTIONNAIRE ..... ......................... ......................................................... .... .... ......... 40