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EFFECT OF ELECTRONIC ACCOUNTING ON THE CORPORATE PERFORMANCE OF ORGANIZATION

EFFECT OF ELECTRONIC ACCOUNTING ON THE CORPORATE PERFORMANCE OF ORGANIZATION


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EFFECT OF ELECTRONIC ACCOUNTING ON THE CORPORATE PERFORMANCE OF ORGANIZATION

PROJECT TOPICS AND MATERIALS ON EFFECT OF ELECTRONIC ACCOUNTING ON THE CORPORATE PERFORMANCE OF ORGANIZATION


Abstract

This research work appraised “The effect of electronic accounting in the corporate performance of an organization. (a study of abbot resources Enugu)”. The objective of this study includes the following: to identify the effect of electronic accounting on the account receivables of an organization, to examine the extent to which electronic accounting have impact on account payables of an organization. For a successful completion of this research work, the researcher made use of both primary and secondary methods of data collection for information gathering. Primary data were collected through questionnaire administration, oral interview, and personal observations. Secondary data were collected through periodicals and journals, textbooks and lecture note books, and also the Internet. The data collected were presented in tables and analyzed with simple percentage while the hypotheses stated were tested with chi square. The researcher found out that electronic accounting has significant effect on the account receivables of an organization, electronic accounting has impact on financial reporting of an organization.

 CHAPTER ONE

INTRODUCTION

  • Background of the study

Accounting according to Adebiyi, (2010:12) is the measurement, processing and communication of financial information about economic entities. Accounting, which has been called the “language of business”, measures the results of an organization’s economic activities and conveys this information to a variety of users including investors, creditors, management, and regulators (Agbasi, 2008:43). Anunolam (2006:88) defined accounting as the systematic and comprehensive recording of financial transactions pertaining to a business. Accounting also refers to the process of summarizing, analyzing and reporting these transactions. The financial statements that summarize a large company’s operations, financial position and cash flows over a particular period are a concise summary of hundreds of thousands of financial transactions it may have entered into over this period. Accounting is one of the key functions for almost any business; it may be handled by a bookkeeper and accountant at small firms or by sizeable finance departments with dozens of employees at larger companies. Dreytus, (2009: 12) is of the view that the reports generated by various streams of accounting, such as cost accounting and management accounting, are invaluable in helping management make informed decisions. While basic accounting functions can be handled by a bookkeeper, advanced accounting is handled by qualified accountants who possess designations such as lCAN (Institute of Chartered Accountants). All accounting designations are the culmination of years of study and rigorous examinations, combined with a minimum number of years-of practical accounting experience. Electronic accounting according to Eze, (2010:21) is the application of’ online and internet technologies to the business accounting function. Similar to e-mail being an electronic versi on of traditional mail, electronic accounting is electronic enablement of lawful accounting and traceable accounting processes which were traditionally manual and paper-based. Nweze (2008:56) opined that electronic accounting involves performing regular accounting functions, accounting research and the accounting training and education through various computer based /internet based accounting tools such-as digital tool kits, various internet resources, international web-based materials institute and company databases which are internet based, web links, internet based accounting software and electronic financial spreadsheet tools to provide efficient decision making. Electronic accounting improve the corporate performance of organizations by enhancing its diverse accounting activities such as associated with accounts payable, accounts receivable, financial reporting and bank and account reconciliations. The above variables are the dependent variables which this study is meant to establish a relationship with the independent variable (electronic accounting).

  • STATEMENT OF THE PROBLEM

Using electronic accounting system comes with its own set of problems, such as the need to protect against data loss through power failure or viruses, and the danger of hackers stealing data. This can alter information on both accounts payables and receivables of an organization thereby affecting its overall performance. Computer fraud is also a concern and situations where there are no systems of control to monitor access to accounting information can go to a great extent in affecting diverse activities of the organization. It could lead to wrong financial reporting or even poor bank and account reconciliations.

1.3 OBJECTIVE OF THE STUDY

The objectives of the study are;

The broad objective of this study is to appraise the effect of electronic         accounting.

The specific objectives include the following:

  1. To identify the effect of electronic accounting on the account receivables-of an organization.
  2. To examine the extent to which electronic accounting have impact on account payables of an organization.
  3. To determine how electronic accounting impacts on financial reporting of an organization.
  4. To examine the effect of electronic accounting on bank and account reconciliations of organizations

1.4 RESEARCH HYPOTHESES

For the successful completion of the study, the following research hypotheses were formulated by the researcher;

H0:     Electronic accounting does not have significant effect on the account receivables of an organization.

H1:   Electronic accounting does have significant effect on the account receivables of an organization.

H02: Electronic accounting does not have impact on account payables of an organization.

H2: Electronic accounting does have impact on account payables of an organization.

1.5 SIGNIFICANCE OF THE STUDY

This study will be of enormous significance especially to the management and staff of Abbot Resources Enugu as it will enlighten them on the diverse roles of electronic accounting in enhancing organizational performance. The recommendations of this study will suggest for other firms on the strategies or diverse electronic accounting tools to promote organizational performance.

The general public will not just be enlightened on the concept of electronic accounting but will be made to understand how to apply its tools in their diverse businesses for enhanced performance. Students and other researchers will widen their scope from the information contained in this study

1.6 SCOPE AND LIMITATION OF THE STUDY

This study covered electronic accounting in the corporate performance of organizations. It focused on Abbot Resources, Enugu. The researcher encounters some constrain which limited the scope of the study;

  1. a) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study
  2. b) TIME: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.
  3. c) Organizational privacy: Limited Access to the selected auditing firm makes it difficult to get all the necessary and required information concerning the activities

1.7 DEFINITION OF TERMS

ELECTRONIC ACCOUNTING: This is the application of online and internet technologies to the business accounting function.

ACCOUNT PAY ABLE: This is an accounting entry that represents an entity’s obligation to payoff a short-term debt to its creditors.

ACCOUNT RECEIVABLES: Money owed by customers (individuals or corporations) to another entity in exchange for goods or services that have been delivered or used, but not yet paid for.

PROFITABILITY: This is used primarily to describe any ongoing process is which a good or a service would produce more benefits than consequences.

FINANCIAL REPORTING: This is the process of producing the reports, called statements that disclose an organization’s financial status to management, investors and the government.

PERFORMANCE: The accomplishment of a given task measured against present known standards of accuracy, completeness, cost, and speed.

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This research work appraised “The effect of electronic accounting in the corporate performance of an organization. (a study of abbot resources Enugu)”. The objective of this study includes the following: to identify the effect of electronic accounting on the account receivables of an organization, to examine the extent to which electronic accounting have impact on account payables of an organization. For a successful completion of this research work, the researcher made use of both primary and secondary methods of data collection for information gathering. Primary data were collected through questionnaire administration, oral interview, and personal observations. Secondary data were collected through periodicals and journals, textbooks and lecture note books, and also the Internet. The data collected were presented in tables and analyzed with simple percentage while the hypotheses stated were tested with chi square. The researcher found out that electronic accounting has significant effect on the account receivables of an organization, electronic accounting has impact on financial reporting of an organization... accounting project topics

EFFECT OF ELECTRONIC ACCOUNTING ON THE CORPORATE PERFORMANCE OF ORGANIZATION

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