IMPACT OF COMPUTERIZED ACCOUNTING SYSTEM ON EMPLOYMENT IN FINANCIAL INSTITUTIONS

CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND OF THE STUDY

During the primitive age very little or no notes were taken into proper record especially those activities and transactions involving money. The records and notes were usually taken either in memory (human being) or some marks on the ground or trees. As man developed from this primitive era to a more complex economic society, there occurs notable growth and expansion in his way of life and activities he undertakes. During this time, the most disturbing problems that man faced was that there were no accounts and records. Being properly kept and stored. These, therefore, allow for inefficiency and breach of contract and trust. The more developed man became the more the need for systematic record-keeping and storage. The complexity of society leads to chronological order of manual development in record keeping. Important records can be kept manually for future use but still in a tedious way. At a more technological era, more work was done in the accounting system. Accuracy, efficiency, and durability became pressing problems that faced the manually kept and processed records in the accounting system, hence the development and introduction of the electronic mechanical machine into the accounting system became very vital.  A systematic technological advancement however gradually gave birth to what is known today as the computer. A computer is an electronic device capable of accepting data as input, applying prescribed processes on such data and giving out an output which is called information, the computer can also be said to be a machine that manipulates in accordance with given rules in a pre-determined manner. It is an electronic device that is used to process complex and variety of data within the shortest possible time: This is because it has a very high speed of operation. Data can get into the computer for processing via the input devices such as keyboards, diskette, CD Rom, punch cards, flash drive, etc. the actual processing of data within the shortest possible time: this is because it has a very high speed of operation. Data can get into the computer for processing via the input devices such as a keyboard, diskette, CD Rom, punch cards, flash drive, etc. the actual processing of data takes place in the arithmetic and logical unit (ALU). The control unit (CU) is where all the activities of a computer system are being monitored or coordinated and planned. There also is the memory that is the unit in charge of storing or keeping all data or information in a computer system for a long and short period of time. This storage is made possible under the supervision of the ROM and RAM. There are various types of computers. They are classified as either analog, digital or hybrid computers. A computer can also be a single purpose computer or a general-purpose one. The computer is being used as an accounting device to perform various types of routine office jobs which formerly required the services of the clerical officer. Where the computer is installed and used effectively. It could perform payroll calculations, update accounts receivable and payable, control inventories, process insurance data, prepare dividend, keeping depositors accounts, distribute costs and expenses.  The accounting system in common use ranges from the simple system in which accounting records are maintained by hand to sophisticated systems on a magnetic disk. The accounting to be used in any given company should be well-tailored to the size and to the information need of the business in a computer-based accounting system, he accountant needs only to enter the data needed for the computer to prepare journal entries. All the writings and postings to general ledger and subsidiary accounts are then handled by the computer. The computer being a new remarkable thing in the banking system in the country has increased the rate of which financial records such as ledger, customer accounts, balance sheets, etc. are prepared. Since their immemorial banks usually process information such as calculations of money, updating of customers’ accounts, etc manually, or with the aid of pocket calculators. In recent times, the number of customer operation accounts with the banks has increased. As a result of this, banks, therefore, decided to employ a means through which information can be processed efficiently and to ensure reliability in a speedy manner and this, therefore, initiated the introduction of computer operation into the banking system.  Many Nigeria banks had since computerized their system of accounting, UBA Nigeria Plc is not an exception. It is therefore expected that by now the computerized accounting system whole has increased the speed in the deposit and withdrawal of money from the UB Nigeria Plc Ahmadu Bellow Way branch. It is also expected that this system would be of immense benefit to the bank and that staff of the bank especially the cashiers would have by now, acquired the necessary skills that would enable them to perform effectively using the computer. Apart from these, the UB is expected to have discovered problems (if there are) associated with the use of a computerized system of accounting.

1.2      STATEMENT OF THE PROBLEM

Banks in Nigeria have been using the computerized accounting system in their day-to-day activities. The UB had adopted this system also. The efficiency however of using this system by banks in Nigeria needs to be ascertained alongside its problems. Identifying how efficient the computerized accounting system has to be would go a long way in accessing it i.e. knowing the advantage and disadvantages associated with it. Also one can be able to conclude that their advantage outnumbered its disadvantage or their disadvantage over-power its advantages. Besides this, one can also have an insight into how Nigerian banks had changed or improved over the years in terms of efficiency and accuracy since the introduction of the computerized accounting system into Nigerian banks, the following therefore are the problems that promoted the undertaking of this research study. They include:

i.  Persistent system failure hinders the effective rendering of service to customers.

ii.  Break down or temporary lack of service in the system also affect the operation of the bank.

iii.  Manipulation of the computers by the staff with the attempt to defraud the bank also make an important effect on the operation of the bank.

iv.  Frequent changes in the computer packages and without proper and adequate training also affect the operation of the bank.

1.3      OBJECTIVES OF THE STUDY

In every organization, either private, public volumes of paperwork are being created daily and this volume of paper represents data that must be processed. This study will highlight the ways the computer has helped to minimize the workload this study is also aimed at highlighting the problems of the computerized accounting system,  (if there are) in UB Nigeria Plc Ahamadu Bello way branch where manual efforts are being replaced with computerized activities. It is also the aim of this study to find out how the computerized accounting system has assisted the bank in achieving its goals and objectives.  This work would also analyze the prospects of the use of the computerized accounting system in modern banking.

1.4      RESEARCH QUESTIONS

The research questions were chosen to be used by the researcher instead of formulating a hypothesis. This study will attempt to provide answers to the following research questions.

1.      Do you agree that your organization has a training policy?

2.     Do you agree that the type of training and development are undertaken by an employee determines his/her present and future position?

3.   Do you agree that the training policy of your organization is satisfied able?

4.    Do you agree that poor performance necessitates the training of staff in your organization?

5. Do you agree that the need to improve staff skills and ability is what necessitates the training of staff in your organization?

1.5      SIGNIFICANCE OF THE STUDY

This study would enable the researcher to pass their experience on the subject matter i.e. the problems and prospects of computerized accounting system in Nigeria banks to the concerned organization i.e. UB Plc, Ahmadu Bello way branch so as to enable them be more conversant with any problem that might be identified as a result of the use of the computerized accounting system. The findings of this research work will also serve as a reference for the academic endeavor to lecturers and students and also help customers of banks who would want to know about some advantages and disadvantages (if any) of the use of the computerized accounting system.

1.6      SCOPE OF THE STUDY

This study focuses on identifying the benefits that accurse to Nigeria banks as a result of the use of the computerized accounting system. It also tries to figure out any problem associated with the use of this system. Considering the time frame within which this work is to be completed and other factors; the researcher has decided to limit is work on the UB Nigeria Plc, Ahamadu Bello way branch. The research will cover UB Ahmadu Bello way branch Kaduna.

Related Project Topics :