DEMYSTIFICATION OF THE ACCOUNTING SYSTEMS TOWARDS PERFORMANCE

EFFICIENCY OF CERTIFIED PUBLIC ACCOUNTANTS IN

DAVAO CITY

Alexander Malack
Karol Josif Morcillos

INTRODUCTION

It is evidently observed that the transition in businesses entails the various changes within the
system, included in that particular transformation is the approach that is utilized in crafting financial
statements made by the accountants themselves. The inevitable uprising of technology morphed into
the various avenues of accountancy thus the traditional practice of writing enormous figures of numbers
had evolved into technological inputs that are placed on the electronic spreadsheets and other word
processing components that are accessed by most of the accountants to lessen the burden of their
work. This being said, perhaps contribute to the productivity of the certified public accountants.

By definition, accounting systems pertain to the organized set of manual and computerized
accounting methods, procedures and controls established to gather, record, classify, analyze,
summarize, interpret and present accurate and timely financial data for management decisions. The
systems being used contributes a gigantic impact on the work of certified public accountants. This paper
aims to discern how the approaches affect the working capacity of accountants.

Dating back a thousand years ago, accounting records have been found to be used in various
parts of the world. In the pre-colonial age, the services of an accountant are hardly required with regards
to the economic activities. However, the modern economy as introduced by the international trade and
diversified inter cash economy calls for a profession such as accounting to service the expanding
modern sector. The need to have a place of systematic recording of financial transactions gave birth to
accounting as a profession. During the old times, it has employed by humans themselves to utilize
accounting according to the level of his needs: such as to enumerated and control assets, as a reporting
device of stewardship, tax-gathering and as an evidence of trade, for the control of production, or
management of a business (Okafor, U., 2015).
Lim F. P. C. (2015) claimed that the Manual system is the very first type of accounting system. it utilizes
paper-based journals and ledgers. The manual system is work-intensive for this system relies on human
processing and ability. In that manual system depends and relies on human processing, then it might
be prone to error.

However, it is also the study of Binti Puasa, S. et. al. (2019) determines that accounting
information systems, whether manual or computerized, depends on how proficient a certain accountant
is. Modern technology will be futile if the accountants themselves do not know how the process of the
flow of crafting financial statements works so is the usage of computerized accounting if the
accountants themselves are not inclined towards technology.
 The technological accounting approach in Nigeria, as claimed by Abiahu (2015) involves the
utilization of technology such as computers and other computer capabilities that has a great effect on
the accounting functions of a specific organization. However, the usage of computers among
accountants entails various risks when it comes to the aspect of health and privacy. On the other hand,
the manual accounting system which nowadays is rarely used pertains to the process of utilizing
general journal, general ledger, and worksheets by means of manually writing them (Ama, 2015).
The major difference between computerized accounting systems and manual accounting
systems is speed. Accounting software processes data and creates reports much faster than manual
systems. Calculations are done automatically in software programs, minimizing errors and increasing
efficiency. Once data has been encoded, you can create reports literally by pressing a button in a
computerized system. Another difference between computerized accounting systems and manual
accounting systems is Cost. Manual accounting with paper and pencil is much cheaper than a
computerized accounting, which requires a machine and software including training and program
maintenance (Amahalu, N. et. al., 2017).
87% of the public sector accountants, throughout the totality of Southeast Asia, had transitioned
towards using the latest technology in crafting various financial statements of their clients. While the
other 13% still depend on manual accounting systems as they are more proficient in utilizing it rather
than that of the technological trend (Zakaria, W. Z. W., Ilias, N., & Wahab, N., 2017).
The study of Arcega, C. K. et. al. (2015) discovers that the Small and Medium Enterprises
(SME’s) in the Philippines have been using a systematic accounting system before and after the
transition in the technology for approximately 6-10 years. The main problem that is encountered by the
manual accounting is that it is time consuming that is why most of the accountants of a certain enterprise
resort to a computerized accounting system.
The researchers have been inspired to conduct the study because of the significance and vitality
that lies in the subject matter especially in discovering the most appropriate accounting system. The
researchers believe that the manual system has its own advantages so is the computerized accounting
system. Also, the researchers aimed to have a broad knowledge about finding out if there are
organizations that still use manual accounting and are planning to change it to the computerized
accounting system. The findings of this study could provide relevant information and insight for
entrepreneurs on the problems encountered by the users.

RESEARCH QUESTIONS
1. What is the level of Accounting System approach of the Certified Public Accountants in terms
of:
1.1 Manual Accounting
1.2 Computerized Accounting

2. What is the level of Performance Efficiency of the Certified Public Accountants in terms of:
2.1 Time Management
2.2 Making of Financial Statements
 3. What is the significant relationship between the Accounting System approach and the
Performance Efficiency of Certified Public Accountants in Davao City?

HYPOTHESIS
This study is guided by the null hypothesis tested at 0.05 level of significance

Ho1: There is no significant relationship between the indicators of Accounting Systems when
correlated to the Performance Efficiency of Certified Public Accountants in Davao City.

THEORETICAL FRAMEWORK
This study is anchored in the theory of diffusion of innovation theory (DOI) as established by
Rogers, E. M. (2003).
He defined it as “idea, practice or object that is perceived to be new”. the deployment of new
enterprise systems rarely means that the systems themselves are an innovation, because the new
systems may be replacing an obsolete system. The process in which a new idea is communicated
through certain channels over time among the members of a social system is popularly known as
diffusion.

The theory itself draws a connection towards the accounting systems being used in the business.
The transition of it overtime signifies the theory of diffusion wherein the old systems are being replaced
with the new, innovated one.

Furthermore, Rogers, E. M. (2003) see diffusion of innovation as the process by which an

innovation is communicated through certain channel/s over time among the members of social system;
that is, diffusion is a special type of communication concerns with spread of messages that are
perceived as new idea/s, object/s or practice/s (that is computerized accounting system).

CONCEPTUAL FRAMEWORK
This study will be guided by the conceptual framework below:

Accounting Systems Performance Efficiency

• Manual Accounting • Time Management

• Computerized Accounting • Making of Financial
Statements
 METHODOLOGY
RESEARCH DESIGN

Quantitative Research is a type of study that involves the process of analyzing numerical data
using statistical techniques. The researchers will use a descriptive-correlational type of research. The
descriptive method will be used to determine the level of Accounting Systems and Performance
Efficiency. The correlation method will determine the significant relationship between the Accounting
Systems and Performance Efficiency of Certified Public Accountants in Davao City.

RESEARCH RESPONDENTS
The respondents of this study will take a sample of 10 Certified Public Accountants through
random sampling. The Accountants involved in the study will be coming from various accounting firms
in Davao City, 8000 Philippines. An informed will be included in the survey to protect their identity as
respondents.
RESEARCH INSTRUMENT

The first instrument will make use of a questionnaire to measure the levels of accounting systems
of Certified Public Accountants. After thorough researching, the most notable scale applied is the scale
from Ezediunor, J. C. (2009) that is comprised of 12 statements with a 5-point Likert scale
The second instrument utilized was an adapted and modified questionnaire from Arcega C. K.
et. at. (2015) to measure the level of Performance Efficiency of Certified Public Accountants in Davao
City with a 5-point Likert Scale.

The instruments will be going to undergo validity and reliability to ensure the accuracy of data
for the results and discussion.

STATISTICAL TREATMENT
This study will use the following statistical treatment:
Paired T-test will be used to determine the significant difference in the level of Accounting Systems
and Performance Efficiency.
Pearson R Correlation will be used to determine the correlation between Accounting Systems and
Performance Efficiency.
 ACCOUNTING SYSTEMS ITEM INVENTORY FOR QUESTIONNAIRE

No. Item Statement Reference / RRL

MANUAL ACCOUNTING
1 The manual accounting system is the accounting Vitez (2013) explains that using the
information technique that our company commonly manual accounting system is very
used in the industry for management decision making. detailed since accountants must
2 As an accountant, I usually encountered special carefully enter information into
problems when using the manual accounting system. physical books. If developed
3 The manual accounting system is more effective and correctly, the manual accounting
efficient in reducing the total amount of funds lost system can deliver timely and
through frauds and forgeries. accurate information. Unlike the
4 The manual accounting system, as to how I see it, is computerized, it does not need
capable of storing, retrieving, analyzing, processing, electricity or a battery. Comparative
summarizing and reporting promptly. cheap workforce and resources,
5 I find manual accounting systems durable and more reliability, independence from
transparent than the computerized ones. machines, and skilled workers‟
availability are the advantages of
manual accounting.

Vitez, O., (2017). Manual

accounting VS. computerized
accounting.
COMPUTERIZED ACCOUNTING
6 It always takes me more financial resources to run a Computerized accounting is a form
software system for computerized accounting systems. of the accounting system that is
7 The software accounting system increases my done with the aid of a computer that
effectiveness and efficiency in working as an tends to involve dedicated
accountant. accounting software and digital
8 There has been an increase in the quality of work done spreadsheets to keep track of a
when I use software/computerized accounting system. business or client’s financial
9 I usually use a computerized accounting system when transactions. However, even though
it comes to handling a large volume of data. it comes with tremendous benefits,
10 The computerized accounting system, as to how I see certain factors such as computer
it, is capable of storing, retrieving, analyzing, viruses and the high acquisition cost
processing, summarizing and reporting promptly. of software affect the effectivity of
this Accounting System

Frimpong, K. A., Yawson, I. K., &

Akomeah, E. A. (2018)
Computerized accounting in Ghana:
The shift from books to software:
The benefits and challenges
associated with the transition.
 PERFORMANCE EFFICIENCY ITEM INVENTORY FOR QUESTIONNAIRE

No. Item Statement Reference / RRL

TIME MANAGEMENT
1 I am able to prioritize tasks that are of utmost Time management may reduce
importance with ease. stress for accountants, which is
2 Accounting systems help me in enhancing and generally quite high because of
increasing the quality and quantity of my work. legislative changes and deadlines.
3 I am able to meet deadlines without rushing at the last They have planned for daily tasks;
minute with the use of accounting systems. they prioritize the tasks in order of
4 I have been productive and usually have spare time for importance and try to do the work
other things since the time I used Accounting Systems. during working hours. Some of them
5 I try to delegate tasks that are given to me to save time. need to appreciate the time by
accepting the task whose results
obtained justify the time invested.

Bigioi, C. E., & Ionescu, A. M.

(2016). Time Management for
Accountants. Challenges of the
Knowledge Society, 779.
MAKING OF FINANCIAL STATEMENTS
6 I can easily interpret data in making the financial Financial statements mainly monitor
statements needed. the monetary inflows and outflows
7 The accounting system has the ability to reliably update from various processes in a
data and take action in a certain financial statement particular business. Accounting
8 Data are more accurate when I create a certain financial Systems that is used to render a
statement using accounting systems. huge contribution towards the
9 Summarizing, analyzing and reporting is often much reliability and accuracy of data that
easier when making financial statements using will be presented.
accounting systems.
10 As for me, the accounting systems utilized always do Minnis, M., & Sutherland, A. (2017).
have a connection on as to how proficient an Financial statements as monitoring
accountant is in making financial statements. mechanisms: Evidence from small
commercial loans. Journal of
Accounting Research, 55(1), 197-
233.
 APPENDIX A: SAMPLE SURVEY QUESTIONNAIRE
Name: _________________ (Optional)
Age: ______ Years of Service: ____________
Directions: Please read each statement carefully and kindly tick (/) the appropriate response based on
your perception or view of the statements below.
5 – ALWAYS 4 – OFTEN 3 – SOMETIMES 2 – RARELY 1 – ALMOST NEVER
STATEMENT 5 4 3 2 1
1. The manual accounting system is the accounting information
technique that our company commonly used in the industry
for management decision making.
2. As an accountant, I usually encountered special problems
when using the manual accounting system.
3. The manual accounting system is more effective and efficient
in reducing the total amount of funds lost through frauds and
forgeries.
4. The manual accounting system, as to how I see it, is capable
of storing, retrieving, analyzing, processing, summarizing and
reporting promptly.
5. I find manual accounting systems durable and more
transparent than the computerized ones.
6. It always takes me more financial resources to run a software
system for computerized accounting systems.
7. The software accounting system increases my effectiveness
and efficiency in working as an accountant.
8. There has been an increase in the quality of work done when
I use software/computerized accounting system.
9. I usually use a computerized accounting system when it
comes to handling a large volume of data.
10. The computerized accounting system, as to how I see it, is
capable of storing, retrieving, analyzing, processing,
summarizing and reporting promptly.
11. I am able to prioritize tasks that are of utmost importance with
ease.
12. Accounting systems help me in enhancing and increasing the
quality and quantity of my work.
13. I am able to meet deadlines without rushing at the last minute
with the use of accounting systems.
14. I have been productive and usually have spare time for other
things since the time I used Accounting Systems.
15. I try to delegate tasks that are given to me to save time.
16. I can easily interpret data in making the financial statements
needed.
17. The accounting system has the ability to reliably update data
and take action in a certain financial statement.
18. Data are more accurate when I create a certain financial
statement using accounting systems.
 19. Summarizing, analyzing and reporting is often much easier
when making financial statements using accounting
systems.
20. As for me, the accounting systems utilized always do have a
connection on as to how proficient an accountant is in
making financial statements.

References
Ama, G.A.N. (2015). Simplified financial accounting. Nigeria: John Jacob’s Classic Publishers Ltd.

Abiahu, M.F.C. (2015). Practical Approach to Accounting Information System Development (2nd Ed.).
Awka: One Way Technologies Limited. 2
Amahalu, N., Abiahu, M. F. C., & Chinyere, O. (2017). Comparative analysis of computerized
accounting system and manual accounting system of quoted Microfinance Banks (MFBs) in
Nigeria.

Antonelli, R. A., de Almeida, L. B., Colauto, R. D., & da Silva, W. V. (2016). Perceptions of accounting
professionals about the influence of information technology in their individual work process.
African Journal of Business Management, 8(5), 146-157.

Arcega, C. K., Datinguinoo, E., Guerra, J., Guno, C., Mayuga, H. J., Villamena, E., & Manongsong, J.
L. (2015). Computerized vs. non-computerized accounting system of small and medium
enterprises in Lipa City, Philippines: A comparative analysis. Asia Pacific Journal of Academic
Research in Business Administration, 1(1).
Becker, D. A., Pernsteiner, A., & Drum, D. (2016). The roles of technology acceptance and computer
learner aptitude on accounting student learning achievement with IDEA software. International
Journal of Learning Technology, 11(4), 270-284.
Bigioi, C. E., & Ionescu, A. M. (2016). Time Management for Accountants. Challenges of the Knowledge
Society, 779.

Binti Puasa, S., Smith, J., & Milda Amirul, S. (2019, July). Accounting information system effectiveness:
multiple methods. In Seminar Penyelidikan Perakaunan 2019.
Frimpong, K. A., Yawson, I. K., & Akomeah, E. A. (2018) Computerized accounting in Ghana: The shift
from books to software: The benefits and challenges associated with the transition.

Lim, F. P. C. (2015). Impact of information technology on accounting systems. Asia-Pasific Jornal of

Multimedia Services Convergent with Art, Humanities and Socialgy, 3(2), 93-106.
Minnis, M., & Sutherland, A. (2017). Financial statements as monitoring mechanisms: Evidence from
small commercial loans. Journal of Accounting Research, 55(1), 197-233.

Okafor, Uchenna M.(2015) A Comparative Analysis Of Computerized Accounting System And Manual
Accounting System.
Rogers, E.M. (2003). Diffusion of innovations (5th Ed.). New York: Free Press
Vermatt, M.E. and Shelly, G.B. (2015). Discovering computers 2011: Living in a digital world, computer.
U.S.A: RRD Menasha Publishing.

Vitez, O., (2017). Manual accounting VS. computerized accounting.

Zakaria, W. Z. W., Ilias, N., & Wahab, N. (2017). A survey on the impact of accounting information
system on tasks efficiency: Evidence from Malaysian public sector agencies. International
Review of Management and Marketing, 7(1), 183-190.