ABSTRACT
This research study is a comparative analysis of
computerized accounting system and manual accounting system with reference to
Ama breweries plc. and African petroleum plc. all in Enugu state. It is a
survey research. The study is a comparative evaluation of computerized
accounting system and manual accounting system to ascertain which one is more
effective and efficient than the other. Data were collected from primary and
secondary sources which include the use of questionnaires, personal
observations, text books, journals and internet. Three hypotheses were
formulated and tested using Z-test statistics, while questionnaires were
analyzed in tabular form using simple percentage. It was discovered that
software accounting system is expensive to run, software accounting system
handles larger volume of data than manual accounting system and software
accounting system encourages fraud, and funds can be lost in organization with
the use of software accounting system. As a result of the comparison between
manual accounting system and computerized accounting system, to attain a larger
volume of data and work accuracy in a shorter period it is better for
organizations to use computerized accounting system to increase their
efficiency. Those studying accounting as a profession should be introduced to
both the theoretical and practical aspect of software accounting and to reduce
funds lost through frauds and forgeries managers and accountants should provide
software developers with progressive information relating to their business
activities.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND
OF THE STUDY
Accounting system according to an Italian monk, Luca Pacioli
(1491), is the combination of personnel records and procedures that a business
uses to meet its need for financial data. Financial accounting also encompasses
the summary of information and presentation of periodic reports such as profit
and loss statement and balance sheet. The historical firms of accounting were
of different degree of sophistication according to the need and techniques of
the time. This is why modern accounting is based on the double entry system and
the recognition of the dual nature of each transaction and this gives a
co-ordinate support for the control of all the transaction of a business.
Accounting system according to business dictionary is an
organized set of manual and computerized accounting methods, procedures and
controls established to gather, record, classify, analyze, summarize, interpret
and present accurate and timely financial data for management decisions.