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The Effect of Computerised Accounting on the Quality of Financial Reporting in Ngos in Uganda a Case Study of Forum for African Women Educationalists (Fawe).

Course: Bachelor of Business Administration and Management
Year: 2017
Author: MATOVU GRACE KADUYU
Supervisor: Jude Kimera Banadda

Abstract

The major objective of this study was to establish the effect of computerized accounting on the quality of financial reporting of NGOs in Uganda. The specific objectives are; to find out the effect of computerized data inputting on the quality of financial reporting in FAWE Uganda; to examine the effect of computerized processing on the quality of financial reporting in FAWE Uganda; and to examine effect of outputting on the quality of financial reporting in FAWE Uganda.

A descriptive research design was used to conduct the study with a sample size of 41 respondents. Various data collection instruments were used in this study and these include; questionnaires and interview guide.

Pearson correlation Pearson correlation was applied to check how quality of financial reporting (QFR) is related to Inputting (I), Processing (P) and Outputting (O). The study discovered that Quality of Financial Reporting with Inputting (r= 0.775), Processing (r = 0.796), Outputting (r= 0.790) show a positive relationship. The results indicate that all the variables are statistically positive and significant at (p<.05).

From the study it can be concluded that Computerized Accounting in terms of inputting, processing and outputting positively correlates with Quality of Financial Reporting of FAWE Uganda. This means that there is a positive correlation between Computerized Accounting and Quality of Financial Reporting of NGOs in Uganda.

The researcher recommends that stakeholders should adapt to computerized accounting for better financial reporting, and NGOs should develop and organize constant trainings on how to use computerized accounting to train and educate employees on the way these systems work and how they can incorporate computerized accounting with manual based accounting in order to perform effectively and efficiently

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