An Evaluation Of Effective Financial Management In A Computerized Accounting System (a Case Study Of Guaranty Trust Bank Plc Abuja)

An effective accounting information system is essential to any organization’s long run success. Without a means of monitoring the events that occur, there would be no way determine how well the organization is performing. The aim of this study is to check the effectiveness and efficiency of financial management in computerized environment; to ascertain whether computer has since its adoption enhance profitability and effectiveness in managing the banking and other financial sectors. This evaluation is targeted at exploring how the use of computer in the solving of accounting issues has yielded positive result in both the banking and other finance circle, using Guaranty Trust Bank Plc, Abuja as a case study.

 

CHAPTER ONE:

INTRODUCTION

Historical background of Guaranty Trust Bank Plc

Research Questions

CHAPTER TWO:

LITERATURE REVIEW

Advantages of Computerized Accounting System

Disadvantages of Computerized Accounting 

CHAPTER THREE

CHAPTER FOUR

DATA PRESENTATION, ANALYSIS AND INTERPRETATION

CHAPTER FIVE

SUMMARY CONCLUSION AND RECOMMENDATION

 

We live in an era of interesting changes and challenges. Information technology is defining our modes of life and ways of thinking. It is opening endless opportunities to expand our intellectual, academic and professional visions. It is no wonder that today we study accounting information systems not only emphasizing the mechanics and functions of accounting but also incorporating the opportunities in innovative applications of IT. AIS have truly become information systems for decision making and control because of increasing applications of information technology.

Today the service sector has gained prominence in our economy. Modern business organizations function in a vastly altered environment. They must treat information as a valued resource in order to prosper. Information is intelligence that is meaningful and useful to persons for whom it is intended, because it is necessary for making sound decisions and inducing desired actions (Wilkinson et al., 2000). Much of the information needed by firms is accounting information, since it is particularly useful in meeting these needs. Accounting information is the output of AIS and is financially oriented. 

An accounting information system is a unified structure within an entity, such as a business firm, that employs physical resources and other components to transform economic data into accounting information, with the purpose of satisfying the information needs of a variety of users (Dey, 2007). This is the primary aim of any AIS. There are some other objectives that will help to achieve this primary aim. Such as – to support the day-to-day operations, to support decision making by internal decision makers, to fulfill obligations relating to stewardship etc. During the accounting systems used to be isolated from other information systems and served as operational support systems. Today, as more powerful, flexible, economical and user-friendly software and hardware have become available, the trend is toward a logical arrangement where a single system can support both accounting and operational needs. In sum, today’s accounting systems are closely tied into and may even be fully integrated with other information systems. 

Once data have been collected, it is being transformed into information during input, processing and output stages (Romney and Steinbart, 2003). An effective accounting information system performs several key functions throughout these three stages. The functions of AIS are - data collection, data maintenance, data management, data control (including security), and information generation. These functions are akin to interrelated subsystems. Efficient and effective accounting information systems are based on certain basic principles. These principles are – cost effectiveness, useful output and flexibility.  

Well designed AIS can help to improve the efficiency of operations and decision making by providing accurate information in a timely manner. It also helps to share knowledge and expertise, perhaps thereby improving operations and even providing a competitive advantage (Romney and Steinbart, 2003). Information is generally what gives a company a competitive edge and makes it viable. Because it is such a valuable resources, information must be reported from unauthorized disclosure and destruction. Risk due to security lapses have increased, partly because of the complexity of computer systems and intra-and inter organization networks. To safeguard its resources, a firm should implement a variety of security measures. Adequate security measures enable a firm to provide on going protection of its computer facilities and other physical facilities, maintain the integrity and privacy of its data files and avoid serious damage or disastrous losses (Moscove et al., 1997).