The Impact of Implementation of
E-Accounting System on Financial
Performance
GROUP MEMBERS NAME
1. Mohamed Alas Hassan
2. Mohamed Ali Ahmed
3. Mohamed Mohamud Abdi
Problem Statement
The Implementation of e-Accounting system is useful to perform
accounting financial such as book keeping, budgeting, cash flow, profit
analysis, payroll accounting, product costing, tax filing and the preparation
of financial statement. These financial can provide accounting information
useful in making informed decisions. However, a large of number use of
the manual accounting system and many do not involve in any form of
accounting practice at all.
The manual accounting system is characterized with lack of speed and
difficulty in retrieving financial data. The practice of not keeping record
and the use of manual accounting system either by MSEs are not sustainable
in the long-term.This is because as the enterprise opens up, it will be
necessary to access external finance for business growth and expansion.
CONT…
The introduction of ICT in accounting processes in relation to
accounting applications like the use of spreadsheets; off- the- shelve
accounting software (e.g., Sage, Peachtree MYOB Quick Books); inhouse-built Accounting Software; Web-based Accounting Software
and ICT devices like the use of mobile phone; computer and the
internet.
These innovations in accounting have brought sophistication, speed
and flexibility to all the functional areas of accounting. Yet MSEs are
still at crossroads in terms of implementing e-Accounting system.
CONT…
Following these gaps, this study advances knowledge by providing
new evidences on the organizational determinants that affect the
implementation of e-Accounting on Financial Performance
particularly in Mogadishu, it is crucial and timely to examine the
Impact of Implementation of E-Accounting System on Financial
Performance.
The main motive of this paper is to find The Impact of
Implementation of E-Accounting System on Financial Performance
in Mogadishu.
RESEARCH METHODOLOGY
Research Design
This study will used descriptive design, qualitative and primary data
survey design is descriptive study present oriented methodology
used to investigate population by selecting samples to analysis and
discover occurrence the data collected by the questionnaire.
Target Population
The target population of this study will the Managers, employees.
The researcher will select 60 Managers and employees works
Premier and IBS bank as a target population. This selection is based
on the availability of the Managers and employees and their
experience of the field.
CONT…
The researchers were used sample of 52 respondents of the above
target population. The researcher will stratify respondents according
to their important in Somalia and they are purposively chosen as
target respondents.
The study will used purposive sampling which is a function of nonprobability sampling to select the above mentioned fifty two (52)
respondents. The formula is written as: n = N / (1 + (N*e^2))
Where: n = number of samples N = total population e =
Significance level, while significance level of this study is 5% = 0.05.
Therefore n = 60/(1+(60*0.05^2))=52.
CONT…
Research Instrument
The study will used questionnaire as research instrument to collect
the primary data from the prospective respondents to achieve the
primary objective of the research. Questionnaires were used since
the study intends to collect a lot of data about the relationship
between the research variables in the short period of time. Another
apartment reason of using questionnaires will that most of
respondents are educate and literate and the obtained information
can be easy described in writing.
CONT…
Data analysis
The researcher will used to collect data descriptive statistics to analyze the
primary data. Descriptive statistics refers to the use for measuring of
central tendencies such as means, medians and modes and measurement of
dispersion such as range, quartile, deviations, standard deviation and
variance to describe a group of subjects. The data willcollected from the
study area, edited, collected and tabulated data will used manually to enter
in a statistical package for social analysis (spss) spreadsheet then tabulated
using the programmer and analyzed. Statistical package for social analysis
(spss) is computer application that provides statistical analysis of a data. It
allows indepth data access and preparation, analytical, reporting graphics
and model.
FINDINGS
The major research findings are the follows:
1. E -Accounting System Effect on Financial Performance
Outcomes.
The study found out that e-accounting system affect on financial
performance outcomes, the study also found use e-accounting
system will lead to increase employee performance, the study also
found its more efficient and flexible than the manual system.The
study also found it shows that the e-accounting system has a positive
impact on financial performance, the study also found its better
quality work and lower operating cost.
CONT…
2. Financial Performance and its Qualities by E-Accounting
System.
The study found out that financial performance and its qualities by eaccounting system there is a guaranteed quick speed of processing
financial performance, the study also found high of level of financial
performance by use electronic accounting, study also found
electronic accounting has change the financial performance and its
better quality work, the study also found electronic accounting has
reduced errors in the financial reports.
CONT…
3. Challenges of E-accounting system on Financial
Performance.
The study found out that the E-Accounting System has challenges to
financial performance, the study also found out that difference
challenges and the mostly challenges is human error, the study also
found It is very difficult to ensure security or privacy on eaccounting system, the study also found employer need training to
understand the concepts of the e-accounting system, the study also
found the using of E-accounting system reduces of manpower.
CONCULSION
The study was set out to assess the impact of implementation of eaccounting system on financial performance. The objectives of this
study were to ascertain the extent to which electronic accounting
system effecton financial performance outcomes, to establish the
qualities of financial performance by e-accounting system, to identify
the challenges of e-accounting system on financial performance.
This study was descriptive design and the target population for this
type of study is managers and employees.52 respondents were
selected as a sample size. This study used questionnaire. Data was
analyzed using SPSS.
RECOMMENDATION
•That in order to ensure that the organizations have quality
understandable reports; they should invest in computerized
accounting system since it is seen to affect the financial reports to a
great extent.
•Thatleadership enhance financial reports at the organizations to a
great extent, the organizations management should increase
leadership effectiveness in both management and board.
•That in Operational efficiency will be achieved through timely
processing of information, bulk processing and cost reduction which
in turn leads to increased
performance.
END OF THE PRESENTATION