Computer-based Accounting Information System

A computerized accounting system is a great opportunity to work well. Making your

business grow better and it can help streamline accounting steps and help minimize error.

According to the previous study of (Bahati Alfred) the impact of CAS on accounting

practice in public institutions can be measured by the extent to which the institutions have

adopted the use of computerized accounting systems. This study aims to assess the impact of

Computerized Accounting Systems (CAS) on performance of payroll accounting. Specifically,

the study aims to assess the extent of adoption of CAS in payroll accounting, performance of

payroll accounting, identify impact of adoption of CAS in payroll accounting and challenges

facing adopting CAS in payroll accounting.

According to (Dr. Ilirjan Lipi, Dr. Rudina Rama (Lipi), Dr. Xhiliola Agaraj (Shehu)

European Commission report (2014) is emphasized that “SMEs 1 are very important for the

Albanian business economy, accounting for 81 % (EU average: 67 %) of employment and

generating about 70 % (EU average: 58 %) of added value. Rapid developments of information

technology have influenced for good also in the accounting firm itself, its processes and of

course the quality of the information that it offers, which is the purpose of the accounting

information systems, to guarantee in this way a qualitative information for its users and as a

result likely for a good decision.AIS effectiveness and success if we are not aware that the

information is a very important business resource beside other company resources.

According to (Richmell Baaba Amanamah, Alfred Morrison, Kwaku Asiedu) manual

accounting systems provide a useful way of recording business transactions and can deliver an

accounting information system for the small and medium enterprise business owner. Even

though the manual accounting system requires a greater understanding of how to book keep, it
can be easier to manage once the key concepts of double entry bookkeeping have been learnt.

Tavakolian (1995) emphasized that the manual accounting systems consisted of book ledgers and

calculators. However, with this system it was possible for errors to be introduced into the data

since they could go undetected for quite some time. It may appear an undeniable drawback, yet

the records in a paper based accounting system are susceptible to harm by water, fire and

different hazards. What's more, where there exist numerous transactions to record in a business

the sheer volume of transactions can be a disadvantage of a manual accounting systems. This has

led to the development and introduction of computerized accounting systems (CAS). Gupta

(2008) defines a computer as a programmable machine that responds to a specific set of

instructions in a well-defined manner and can execute a pre-recorded list of instructions. The

Information Technology (IT) revolution that brought in computers has experienced a number of

changes. The most noticeable one being in the 1960s, when large organizations needed to store a

lot of information. The use of computers at first was for complex databases only. Nonetheless,

individuals understood the numerous uses that computers brought to the table for everybody for

everyday utilization. Two noteworthy achievements were the introduction of personal computers

(PCs) and the Mac computers, which encouraged organizations and working individuals to adopt

computerisation in a many ways. According to (Njogo & Safiriyu, 2012)

A Conceptual Model” Emad Harash (2017) Small and medium enterprises (SMEs)

regardless of its size has to be effectively and successfully managed for it to grow, remain

competitive and survive. The SMEs in Iraq have been chosen primarily because these enterprises

play a significant role in the development of the industry in the country in general. Private SMEs

are typically held directly or indirectly by the private sector. SMEs are gaining widespread

acceptance as viable drivers of economic growth (Harash, 2014; Harash, 2015). According to
previous empirical studies shows that SMEs in developing countries are markedly supporter and

attraction economic prosperity (Harash, 2013; Harash, 2014; Harash, 2015; Njogo & Safiriyu,

2012; Olatunji, 2013). Available data from the Central Organization for Statistics (COS)

indicates that private sector in Iraq consists primarily of SMEs where are a focal point in shaping

enterprise policy and those represent (99) percent of all companies in Iraq (Harash, 2013;

Harash, 2014; Harash, 2015). SMEs are the building blocks of any growing economy. SMEs

have tremendous influence on the state and wellbeing of the nation in employment generation

and rapid substantial industrial development and key to ensuring economic growth, innovation,

job creation, and social integration.

According to Accounting is the most stable of the management disciplines to manage the

financial healthiness of an study, business that in spite of instability and continuity, accounting

has seen major changes during the past century. Computerized accounting system is a tool

which, when incorporated into the field of information system where designed to help in the

management and control of topics related to firm’s economic financial area. This paper is

intended to pursue the concept of computerized accounting system and financial reporting.

Nowadays, business organizations adapt information technology gradually. In the way

organization use computerized accounting system in their business to entertain many advantages

and avoid numerous disadvantages.

Inaccurate manual accounting is one of the biggest problem that you can encounter while

switching computerized accounting. It is better to fix this if you are well aware that there are

irrelevant information in your book. Take this as a great opportunity to start a new.

Statement of the Problem

helps a business.

Specifically, it seeks to answer the following questions:

1. What is the nature of the business relative to?

a. Type of business

b. Kind of business

c. Years of using Computer-based Accounting Information System

d. Type of ownership

2. What are the benefits derived from Computer-based Accounting Information System?

3. What are the challenges of using the Computer-based Accounting Information System?

4. Is there a significant difference between the utilization of Computer-based Accounting

Information System when grouped according to nature of business?

Hypothesis

1. There is no significant difference between the utilization of Computer-based Accounting

Information System when grouped according to nature of business.

Conceptual/ Theoretical Framework

Fig. 1. Paradigm of the Study

Conceptual theory suggests that an accounting information system should be designed in a

flexible manner. It's also need to be adapting to the specific decisions being considered so as to

consider the environment and organizational structure. Thus, this leads to developed frameworks

of research based contingency where a conditional association of two or more independent with a

dependent outcome is hypothesized. “Claimed that the ultimate goal of the research in

contingency of accounting should be to develop and test a comprehensive framework or model

that includes multiple elements of accounting information systems with accounting performance

variables. In line with this rationale: H- Accounting information system has a positive direct

effect on accounting performance in SMEs. Along with the hypothesis presented above, the

framework highlights contingency theory to explain the relationships between accounting

information system and accounting performance in SMEs. The development of hypotheses of

this study depends on the prior relevant literature and empirical studies conducted. This

conceptual framework is designed to take into account and reflect all significant financial and

non-financial factors that evaluate and examine the SMEs accounting performance.
Significance of the Study

The significance of this study is to provide necessary information about the advantageous

of using Computerized Accounting Information Systems in the Small and Medium Enterprises in

Tuguegarao City. This study will explain the great influence and effects. Due to our fast

changing world, modernization became a part of the broader technology. Truly, it brings

much benefit to the business world nowadays.

Community – to have insights on how does the business enterprises manage their resources.

Business – improved business performance and enabled the accurate and timely generation of

reports among other benefits.

Researchers – to provide information that can be used and applied in effort to help people

understand.

Future Researchers – this study can be used by the next researchers.

Scope and Delimitation

This study focuses on the overall performances of business enterprises by getting two of

each kind including fast food chains, general merchandise, pharmacies, etc. within Tuguegarao

City.
Definition of Terms

Computer - an electronic device for storing and processing data, typically in binary form,

according to instructions given to it in a variable program.

- is a machine or device that performs processes, calculations and operations based on

instructions provided by a software or hardware program.

Base - is a machine or device that performs processes, calculations and operations based on

instructions provided by a software or hardware program.

Accounting- the action or process of keeping financial accounts.

- It is a systematic process of identifying, recording, measuring, classifying, verifying,

summarizing, interpreting and communicating financial information.

- is the measurement, processing, and communication of financial information

about economic entities such as businesses and corporations.

Information - facts provided or learned about something or someone.

-the communication or reception of knowledge or intelligence.

- It is thus related to data and knowledge, as data represents values attributed to

parameters, and knowledge signifies understanding of real things or abstract concepts.

System - a set of connected things or parts forming a complex whole, in particular system is

delineated by its spatial and temporal boundaries, surrounded and influenced by its environment,

described by its structure and purpose and expressed in its functioning.

-the practice of making one's living by engaging in commerce.

- is the activity of making one's living or making money by producing or buying and

selling products (such as goods and services)

Enterprises - a project or undertaking, typically one that is difficult or requires effort.

-an enterprise is an organization that uses computers.

Questionnaire

Name: Name of Agency/Business:

Age: Gender:
Check the box/es that correspond to your answer/s.

1. What kind of business you are in line?

Sole proprietorship

Partnership

Corporation

1.1 What kind of products do you sell?

Food

Hardware and construction supplies

Pharmacy- related products

Clothing

Others,

1.2 Does your business use Computer-based accounting system?

YES

NO

2. How many years does your business run?

0-3 years

3-5 years

5-6 years

6- Above

2.1 Does Computer-based accounting information system helps a lot in your business?
 YES

NO

3. How do you find the reliability of Accounting Information System ?

Satisfied

Slightly satisfied

Unsatisfied

Slightly unsatisfied

3.1 Does Accounting Information System made your work easier?

YES

NO

3.2 Can you run your business without Accounting Information System for at least a

week?

YES

NO