Effective Computerized Accounting Systems and Quality of Financial Reports: a Case of Charms Uganda Limited

Abstract

The study was about Effective computerized accounting systems and quality of financial reports in charms Uganda limited. The study based on the following objectives; to examine the effect of computerized data inputting on quality of financial reports, to assess the effect of data processing on quality financial reporting, to establish the effect of output on the quality of financial reports. The study used a descriptive and analytical research design to establish a relationship between effective computerized systems and quality of financial reports. The study population was 100 employees and a sample size of 80 employees was drawn from various departments using stratified random sampling method. Questionnaires were used to collect data which was processed and presented using tabulation, bar charts and also narrations for easy understanding of the findings.

The findings were that Effective computerized accounting systems alone account for 33.4% change on quality of financial reports in Charms Uganda Limited in Uganda. Therefore, the rest of the 66.6% change in quality of financial reports is influenced by other factors other than effective computerized accounting systems.

Analysis of variance was also performed where findings suggested that there was some significance in the effect. The p value for the test was computed within an acceptable range since it was at 0.04. This is enough evidence to suggest that an effective computerized accounting system does have a significant effect on the quality of financial reports in Charms Uganda Limited in Uganda.

The t statistics for the variable was also within the acceptable range to support their relevance in the model, computerized accounting systems as the independent variable had a calculated t value of 2.001. This implied that it has a predictive potential on quality of reports in charms Uganda.

The p value for the beta of this variable also suggests the same as it was found to be below 0.05. Therefore the null hypothesis is rejected based on the significance level the study reject the null hypothesis and conclude that effective computerized accounting systems provides a transformation to performance of the Charms Uganda Limited in Uganda.

The recommendation is to maintain different books of accounts like receipts, payment journals, invoices, goods received notes. These will help maintain a good financial environment of Charms Ltd. However, the business should ensure that it reduces on its financial costs, and negotiate for fair tax fees, it should also manage and properly manage its resources like time, capital and other organization requirements which will help them eliminate time management problems as per the findings from the research.

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