IMPACT OF COMPUTERIZED ACCOUNTING SYSTEM ON EMPLOYMENT IN FINANCIAL INSTITUTIONS

 A CASE STUDY OF ECO BANK

ABSTRACT

The research profers an appraisal of the impact of computerized accounting system on employment in financial institution, it analyzes the concept of computerized accounting system and the nature of employment in financial institution. It seeks to determine the impact  of computerized accounting on employment in financial institution.

INTRODUCTION

Ama (2004) defines this system as a system that uses specialized machines called calculators and computer in gathering information. It is technically known as Electronic Data Processing (EDP) Accounting System.

A computer – based accounting system processes data in basically the same manner as does a manual system. Transactions are initially recorded manually on sources documents, the data from these source documents are then key – punched into punched cards, which can be read by the computer. The computer process the information and performs such routine tasks as printing journals, posting to ledger accounts, determining account balances and printing financial statements and other reports.

A computerized accounting system  is a  system which allows the user to enter the transaction into the program once and all accounts are update as necessary

According to Wikipedia the free encyclopedia, some applications of computer in accounting system are:

Word processor

Data base

Spread sheet

WORD PROCESSOR

It is a software packages to help in text processing words are processed. Processing includes injection, deletion, changing, moving words, paragraphs etc. Word processing is the preparation of types scripts, using computing facilities for the storage and manipulation of text for e.g word processor has the  ability to merge names and addresses with standard text so as to give impression that the letter is personalized even in case of circular letter.

DATA BASE

It is simple collections of information (data) on a particular subject. Data base file allows you to manipulate the data in desired form. So database allows us to work on facts and figures to store and manipulates data in any desired way for e.g from the same basic information trial balance is prepared, trading and profit and loss accounts may be prepared; list of debtors creditors may be prepared, purchase and sales forecast may be made etc.

SPREAD SHEET

This is one of the software programs which have increased the utility of computers for accounting purposes. Spreadsheet programs help you to draw vertical as will as horizontal columns on a large sized paper. Each column’s length and breadth can be adjusted according to suitability.

CHAPTER  1

1.1      BACKGROUND  OF THE STUDY

Tanenbaum (2010) states that manual processing of accounting data is too slow, and labour intensive in the banking industry. The speed at which computers can get according data processed cannot be matched. Computerized accounting system provides a means for those firms to record, very high volume of transaction with the great speed and financial and prepare a wide range of detailed financial report.

Computerized accounting system affects strongly on the accounting work and on the performance of banking industry the computers can handle the recording process able to spend more time analyzing, planning and controlling financial operations for management, this can provide a greater amount of analytical information for use in decision making.

Pandey (2007) adds that management is also in a better position to monitor the financial performance of all segments of the organization because a computerized accounting system can produce a broad range of detailed reports at short interval. This is highly important for banks used as a study in this research (Diamond, First and ECO Bank Plc.) because of different branches located at different places.

Thus, computerized systems avoid the time lost in correcting common errors. Computerized accounting system provides management with current accounting balance information since balance is posted as the transaction occur. However this various advantages mitigates the level of manpower employed in the financial institution.The research intends to investigate the impact of computerized accounting  system on employment in financial institution

1.2      STATEMENT OF THE PROBLEM

The problem confronting this research is to determine the impact of computerized accounting system on employment  in financial institution

With a case study of eco bank plc.

1.3  RESEARCH    QUESTION

     1    What is computerized accounting system

      2   What is the impact of computerized accounting on employment in financial institution

     3      What is the impact of computerized accounting on employment in Eco Bank

1.4      OBJECTIVE OF THE STUDY

1 To appraise the nature of computerized accounting system

2  To   determine the impact of computerized accounting

system on employment in financial institution

3  To determine the impact of computerized accounting system on employment in eco bank

1.5      SIGNIFICANCE  OF THE STUDY

The research shall provide a detail analysis of computerized accounting system and its impact on employment in financial institution

1.6      STATEMENT OF HYPOTHESIS

1    Ho      computerized accounting system is not applied in ecobank

      Hi   computerized   accounting system is applied in ecobank

2       Ho   computerized accounting system is not significant in eco bank

        Hi  computerized accounting is significant in eco bank

3     Ho The impact of computerized accounting on employment in eco bank is low

Ho      The impact of computerized  accounting on employment in eco bank is high.

1.7      SCOPE OF THE STUDY

The study is focused  on the appraisal of the impact of computerize accounting system in finanacial institution with a case study of eco bank,

1.8      DEFINITION OF TERMS

ACCOUNTING SYSTEM    DEFINED

Ama (2004) defines the accounting system as “ a formal system for identifying, measuring, accumulating, analyzing, preparing, interpreting and communicating accounting information about a particular entity to a particular group”. By formal system, we mean that the accounting system carries out its functions with laid down rules, regulations, methods, procedures and techniques. It is also a routine and an automatic system. An accounting system as opined by Ama (2001) is a formal mechanism for gathering, organizing and communicating information about an organization’s activities.

COMPUTERIZED ACCOUNTING SYSTEMDEFINED

Ama (2004) defines this system as a system that uses specialized machines called calculators and computer in gathering information. It is technically known as Electronic Data Processing (EDP) Accounting System.

A computer – based accounting system processes data in basically the same manner as does a manual system. Transactions are initially recorded manually on sources documents, the data from these source documents are then key – punched into punched cards, which can be read by the computer. The computer process the information and performs such routine tasks as printing journals, posting to ledger accounts, determining account balances and printing financial statements and other reports.