Full Project-AN EVOLUTION OF THE IMPACT OF COMPUTERIZATION ON THE

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Full Project-AN EVOLUTION OF THE IMPACT OF COMPUTERIZATION ON THE ACCOUNTING SYSTEM OF SMALL SCALE BUSINESSES ORGANISATIONS

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AN EVOLUTION OF THE IMPACT OF COMPUTERIZATION ON THE ACCOUNTING SYSTEM OF SMALL SCALE BUSINESSES ORGANISATIONS

ABSTRACT

The development of accounting systems and the computerization of these systems in a small scale business environment is the main theme of this study. The researcher examined the issues involved by understanding the computerized accounting system of model computers company, Warri. Based on the analysis of data for this study it was discovered that an effective and efficient operating environment is function of a good accounting system other things being equal. Similarity it was discovered that the introduction of computer and the development of accounting packages have revolutionized the accounting system of small scale business organisation. Therefore, the general conclusion drawn from this study is that a computerize accounting system is a basic paradigm for small scale business organisations.

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

An accounting system has been described as an integrated frame work within on entity (such as business firm) that employs physical resource (ie material, supplies, personnel, equipment, funds) to transform economical data into financial information for (a) conducting the firms operation and activities and (b) providing information concerning the entity to a variety of interested users.

An accounting system has all the elements or characteristics of a system such as inputs, processes, outputs, controls and feedback. Davis of al write that “system is the anatomy of accounting.” It domain comprises the entire financial dimensions of business operations, including the flow of financial intelligence throughout the organization and beyond.

The objective of accounting system is to provide an integrated and accumulated information that should assist management in making decisions for the effective and efficient execution of the goals of the organization. An accounting system should be able to identify, assemble, classify, record, and report an entity’s transactions and to maintain accountability for the related assets and liabilities. In order to accomplish these objectives, the system should have sufficient and appropriate methods and records.

The advents of this computer and the Manufacturing of accounting software have revolutionized accounting operation, Davis et al writs that computer system owe much of their acceptance in business to the increased speed and efficiency that they provide for data processing and reporting. They went further to state that computer systems has increased the accuracy, efficiency and timeless of reporting which can be most helpful in improving the decision making activities of management.

Giving the present trend in technology as it affects accounting operations, it would be important to evaluate the impact of computerization the accounting system of small- scale businesses is critical to the success of the information system Nic sulliuan has called for a proper study and analysis before the adoption of computer technology.

Corroboration the view of Sulliuan, Massey 7 walled a caution signal by calling for the need to weigh the benefits and shortcomings inherent in adopting computer technology in the accounting system of small – scale businesses. Although this revolution in accounting practice represents a significant technological shift, the need for evaluating the relevance of computerization cannot be downplayed.

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