COMPUTERIZED ACCOUNTING AND FINANCIAL PERFORMANCE, A
CASE STUDY AT SALAAM BANK MOGADISHU SOMALIA
BY
MOHAMED ALI ……………..
ID: B4-EC300
A RESEARCHER DISSERTATION SUBMITTED TO THE FACULTYOF
ECONOMIC AND MNAGEMENT SCIENCE STUDIES IN PARTIAL
FULFILLMENT FOR THE AWARD OF BACHELOR DEGREE
IN ECONOMIC OF SOMALI NATIONAL
UNIVERSITY
MARCH, 2022
ii
DECLARATION
I hereby declare that this proposal is my own work and effort and that it has not been
submitted to Somalia National University (SNU) for any award. Where other sources
of information have been used, they have been acknowledged.
Name: Mohamed Ali ……………………..
Signature ___________________________
Date:
___/ ___/ ________
3
APPROVAL
This research dissertation has been done under my guidance and Supervision as an
academic Supervisor and is due for submission to Somali National University in Partial
fulfillment of the requirements for the award of a Bachelor’s Degree in Economic and
Management Science.
Supervisor: Mr. Yassin Haji Mohamed
Signature: ______________________________
Date:
……/……/…………
4
DEDICATION
First of all, I would like to dedicate this piece of work to the Almighty Allah who has
enabled me to carry out research successfully and my beloved parents for their endless
support both financially and morally without forgetting my dear brothers and lovely
sisters. May the Almighty Allah bless you all.
5
ACKNOWLEDGEMENT
Firstly, am greatly indebted to the Almighty Allah for enabling me complete my
academic career. I would like to extend my sincere gratitude to my supervisor for the
patience, guidance to ensure that this work is perfect. Thank you very much if it wasn’t
for you, I don’t think I would have achieved this. I would like to thank my best friends
especially, Ust, Yasin, Bishaar, Asli. etc. for their endless support during my academic
career.
My sincere thanks go to my lecturers who have transformed me into a better and
knowledgeable person through the four years of academic struggle at Somali National
University.
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TABLE OF CONTENTS
DECLARATION .......................................................................................................................... 3
APPROVAL ................................................................................................................................ 4
DEDICATION............................................................................................................................. 5
ACKNOWLEDGEMENT ............................................................................................................. 6
TABLE OF CONTENTS ............................................................................................................... 7
LIST OF TABLES ...................................................................................................................... 10
LIST OF FIGURES .................................................................................................................... 11
LIST OF ABBRIVIATIONS ........................................................................................................ 12
ABSTRACT .............................................................................................................................. 13
CHAPTER ONE .................................................................................................................. 14
INTRODUCTION................................................................................................................ 14
1.0
Introduction .............................................................................................................. 14
1.1 Background of the study ............................................................................................... 14
1.2 Problem statement ......................................................................................................... 16
1.3 Purpose of the Study ...................................................................................................... 16
1.4 Research objectives ........................................................................................................ 16
1.4.1 General objective .................................................................................................... 16
1.4.2 Specific Objectives .................................................................................................. 17
1.5 Research questions ......................................................................................................... 17
1.6 Scope of the study........................................................................................................... 17
1.6.1 Geographical scope ................................................................................................. 17
1.6.2BContent Scope......................................................................................................... 17
1.6.3 Time Scope............................................................................................................... 18
1.7 Significance of the Study ............................................................................................... 18
1.7Operational definitions of the study .............................................................................. 18
1.8Conceptual framework of the study .............................................................................. 20
CHAPTER TWO ................................................................................................................. 21
LITRATURE REVIEW ...................................................................................................... 21
2.0 Introduction .................................................................................................................. 21
2.1 Concept of Computerized accounting ........................................................................ 21
2.2 Concept of Financial performance ............................................................................. 22
2.3 The role of computerized accounting ........................................................................... 23
7
2.4 The factors that influence financial performance ....................................................... 24
2.5 Relationship between computerized accounting and financial performance ........... 26
Summary............................................................................................................................... 27
CHAPTER THREE ..................................................................................................................... 28
METHODOLOGY ..................................................................................................................... 28
3.0 Introduction ..................................................................................................................... 28
3.1 Research design ............................................................................................................... 28
3.2 Target Population............................................................................................................. 28
3.3 Sample size....................................................................................................................... 29
3.4 Sampling techniques ........................................................................................................ 29
3.4.1 Simple random sampling .............................................................................................. 29
3.4.2 Purposive sampling ....................................................................................................... 30
3.5 Data sources..................................................................................................................... 30
3.5.1 Primary Data ................................................................................................................. 30
3.5.2 Secondary Data ............................................................................................................. 30
3.6 Data collection tools ........................................................................................................ 31
3.7 Validity and reliability of instrument (questionnaire) ..................................................... 31
3.7.1 Validity of the instrument ............................................................................................. 31
3.7.2 Reliability of the instrument ......................................................................................... 31
3.8 Data collection procedures .............................................................................................. 32
3.9 Data Presentation ............................................................................................................ 32
3.10 Data analysis .................................................................................................................. 32
3.11 Ethical Considerations.................................................................................................... 33
3.12 Limitations of the Study (Challenges faced) .................................................................. 33
CHAPTER FOUR ...................................................................................................................... 33
FINDINGS AND DISCUSION .................................................................................................... 33
4.0 Introduction ..................................................................................................................... 33
4.1 Findings ............................................................................................................................ 33
4.1.1 Demographic characteristics of respondents ............................................................... 33
4.1.2 The role of computerized accounting ........................................................................... 35
4.1.3 The factors that influence financial performance ....................................................... 37
4.1.4 Relationship between computerized accounting and financial performance. ............. 38
Table 4. 11 Positive relationship between computerized accounting systems and
financial performance .......................................................................................................... 38
4.2 Discussion of findings ....................................................................................................... 40
4.2.1 Demographic characteristics of respondents ............................................................... 40
8
4.2.2 The role of computerized accounting ........................................................................... 41
4.2.3 The factors that influence financial performance ........................................................ 42
4.2.4 Relationship between computerized accounting and financial performance .............. 43
CHAPTER FIVE ........................................................................................................................ 44
CONCLUSSIONS AND RECOMMENDATIONS .......................................................................... 44
5.0 Introduction ..................................................................................................................... 44
5.1 Conclusions ...................................................................................................................... 44
5.1.1 The role of computerized accounting ........................................................................... 44
5.1.2 The factors that influence financial performance ........................................................ 45
5.1.3 Relationship between computerized accounting and financial performance .............. 45
5.2 Recommendations ........................................................................................................... 45
References .............................................................................................................................. 46
APPENDICES ........................................................................................................................... 47
APPENDIX I: QUESTIONNAIRE ................................................................................................ 47
9
LIST OF TABLES
Table 4. 1 Gender of respondent ................................................................................ 33
Table 4. 2 Marital status ............................................................................................. 34
Table 4. 3 Educational level ....................................................................................... 34
Table 4. 4 Age of the respondent ................................................................................ 35
Table 4. 5 Computerized accounting has speed and accuracy and free timely .......... 35
Table 4. 6 Computer system enhances increased levels of speed of financial
information sharing among stakeholder. .................................................................... 36
Table 4. 7 Computerized accounting saves a lot of time where in, the employee has to
record the transactions................................................................................................ 36
Table 4. 8 Leverage refers to the proportion of debt and equity in the capital structure
of a firm ...................................................................................................................... 37
Table 4. 9 Liquidity measures the ability of the business to meet financial obligations
.................................................................................................................................... 37
Table 4. 10 Liquidity can be analyzed both structurally and operationally .............. 38
Table 4. 11 Positive relationship between computerized accounting systems and
financial performance................................................................................................. 38
Table 4. 12 computerized accounting systems improve management activities such as
decision making and controlling ................................................................................ 39
Table 4. 13 Computerized accounting departments in business create audit trail ..... 40
10
LIST OF FIGURES
Figure 1. 1 Conceptual framework ........................................................................................ 20
11
LIST OF ABBRIVIATIONS
12
ABSTRACT
13
CHAPTER ONE
INTRODUCTION
1.0 Introduction
This chapter will include; Background of the study, Problem statement of the study,
Purpose of the Study, Research objectives, Research questions, Scope of the study,
Significance of the Study, Operational definitions of the study and Conceptual
framework of the study.
1.1 Background of the study
Globally, Computerized accounting is method of accounting using modern accounting
technology (VAN-Briefing, 2005). As a result, it alleviates the challenges associated
with manual accounting and helps to save time, create accurate accounts, and facilitate
account communication. Computerized accounting is a good example of how to put
current technical advancements to good use (Brynjolfsson and Hitt, 2003). As a result,
the effectiveness I of computerized accounting in Mogadishu's selected wholesale
enterprises will be studied in terms of data validation, security, storage and correctness,
information, and reporting(Magdalene, 2011). Financial performance is a subjective
measure of how well a firm can use assets from its primary mode of business and
generate revenues. The term is also used as a general measure of a firm's overall
financial health over a given period. Accounting as a discipline has existed since the
15th Century (Frankwood& Sangster, 2005). According to these authors, since then
both businesses and economies have greatly evolved. Accounting theory is a
constantly changing subject, as it must adapt to new ways of doing business, new
technological standards, and reporting gaps that are uncovered. (Omondi,
14
2013)Organizations like the International Accounting Rules Board help establish
practical applications of accounting theory, and specialists like CPAs help businesses
interpret accounting standards, according to the scholar.
In Africa, In 1950, many banks started using computers to help in the execution of
accounting functions like production of financial reports. (MASANJA, 2020)DFCU
bank Uganda is a subsidiary of DFCU limited which was started in 1964 by the
common wealth development corporation in the United Kingdom(Magdalene, 2011).
Its main objective was to support long term development projects whose financing
needs and risks were not covered by the then financing commercial lending
institutions. In 1999 and 2000, DFCU bank acquired Uganda leasing company and
gold trust bank thus extending the services of the group to encompass equity finance,
long term development finance; leasing and general banking services DFCU limited
became a public limited company in 2004 and is now listed on Uganda securities
exchange.
According to (Shiraj, 2015)Accounting is most stable of the management disciplines
to manage the financial healthiness of any business. In spite of its stability and
continuity, accounting has seen major changes during the past century. Computerized
accounting system is a tool which, when incorporated into the field of Information
System, were designed to help in the management and control of topics related to
firms’ economic-financial area.
In Somalia, In Somalia, Mogadishu in particular, many Banks still make decisions to
use manual accounting information systems (MAIS) although computerized
accounting information system is said to be having comparative advantage over the
manual accounting information system as it is user-friendly, low-cost microcomputers
and the need to facilitate information to the end users (Lief, 2000). As a result of this,
growing Banks in Mogadishu face increased financial challenges and consequently,
there is a greater need for careful attention to AIS and financial repo1ting (Mohamed,
2007). Over the years, software suppliers have been adding more innovative features
to their finance packages, such· as web interfaces and better integration with supply
chain and other applications, and they have also altered products to make them more
useable for non-accountants.
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1.2 Problem statement
Computerized accounting has played an instrumental in most of companies through
boosting their financial performance(Dufera, 2010). As the intensity of computerized
accounting use in business has greatly improved over the years, this has helped
commercial institutions to improve on their overall financial performance by
promoting transparency, accountability and efficiency through faster capturing,
processing and communication in information. However, it is still evident that there
still exist some performance lags(MASANJA, 2020).
Currently, Salaam Bank, Mogadishu branch is experienced poor financial performance
since its level of profitability has declined.it is believed that failure to effectively adopt
computerized accounting system at the bank led to this situation. the bank failed to sell
services like master cards, personal accounts, investment and etc. (Sugut, 2015)One of
the factors responsible for the high rate of business failure in this area is poor records
and financial management.
As a result, the Bank’s level of profitability and liquidity has declined and its in this
regard that the researcher will examine computerized accounting and financial
performance at Salaam Bank, Mogadishu-Somalia.
1.3 Purpose of the Study
The purpose of the study is to examine computerized accounting and financial
performance at Salaam Bank Mogadishu Branch- Somalia.
1.4 Research objectives
1.4.1 General objective
The general objective of the study is to examine computerized accounting and financial
performance at Salaam Bank Mogadishu Branch- Somalia.
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1.4.2 Specific Objectives
 To identify the role of computerized accounting at Salaam Bank Mogadishu
Branch- Somalia.

To determine the factors that influence financial performance at Salaam Bank
Mogadishu Branch- Somalia.

To assess the relationship between computerized accounting and financial
performance at Salaam Bank Mogadishu Branch- Somalia.
1.5 Research questions
1. What is the role of computerized accounting at Salaam Bank Mogadishu
Branch- Somalia?
2. What are the factors that influence financial performance at Salaam Bank
Mogadishu Branch- Somalia?
3. What is the relationship between computerized accounting and financial
performance at Salaam Bank Mogadishu Branch- Somalia?
1.6 Scope of the study
1.6.1 Geographical scope
The study was conducted from Salaam Bank Mogadishu branch, this bank is located
at makka Al-mukara road area of Zoobbe. Because this bank has experienced poor
financial performance.
1.6.2
Content Scope
The study was focused on the role of computerized accounting at Salaam Bank
Mogadishu Branch- Somalia, the factors that influence financial performance at
17
Salaam Bank Mogadishu Branch- Somalia and the relationship between computerized
accounting and financial performance at Salaam Bank Mogadishu Branch- Somalia.
1.6.3 Time Scope
The researcher was covered the study in 3 months that is February-May 2022, because
this study includes data collecting and editing.
1.7 Significance of the Study
Commercial Banks
The study was helped and clarify the management of commercial banks in Somalia
about the role played that computerized accounting towards financial performance.
Future researchers
the study was acted as a source of references to future researchers concerning
computerized accounting and financial performance.
Researcher
The study enabled the researcher to complete his bachelor’s degree about accounting
and finance.
1.7 Operational definitions of the study
Computer is a digital electronic machine that can be programmed to carry out
sequences of arithmetic or logical operations (computation) automatically. Modern
computers can perform generic sets of operations known as programs. These programs
enable computers to perform a wide range of tasks(Omondi, 2013).
accounting
is the art of recording, classifying, and summarizing in a significant
manner and in terms of money, transactions and events which are, in part at least, of
financial character, and interpreting the results thereof’(Sugut, 2015). With greater
18
economic development resulting in changing role of accounting, its scope, became
broader.
Computerized accounting is accounting done with the aid of a computer. It tends to
involve dedicated accounting software and digital spreadsheets to keep track of a
business or client's financial transactions. (MASANJA, 2020)Computerized
accounting is a beneficial use of current technological advances. Not only has it
revolutionized the traditional paper methods of accounting, but it has also created new
types of accounting applications for business.
Finance is defined as the management of money and includes activities such as
investing, borrowing, lending, budgeting, saving, and forecasting. There are three main
types of finance: (1) personal, (2) corporate, and (3) public/government
performance
financial performance
19
1.8 Conceptual framework of the study
Independent Variable
Dependent Variable
Computerized Accounting
Financial performance






Time saving
Accuracy
Reliability
Intervening Variable



Employees
Government policy
Customers
Figure 1. 1 Conceptual framework
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Growth profit
Return investment
Liquidity
CHAPTER TWO
LITRATURE REVIEW
2.0 Introduction
This chapter will contain literature review and it is basic of the objectives of the study,
that includes; the role of computerized accounting at Salaam Bank Mogadishu BranchSomalia, the factors that influence financial performance at Salaam Bank Mogadishu
Branch- Somalia and the relationship between computerized accounting and financial
performance at Salaam Bank Mogadishu Branch- Somalia.
2.1 Concept of Computerized accounting
A computerized accounting system is an accounting information system that processes
the financial transactions and events as per Generally Accepted Accounting Principles
(GAAP) to produce reports as per user requirements(For, 2013). Every accounting
system, manual or computerized, has two aspects. First, it has to work under a set of
well-defined concepts called accounting principles. Another, that there is a user defined framework for maintenance of records and generation of reports(MASANJA,
2020). In a computerized accounting system, the framework of storage and processing
of data is called operating environment that consists of hardware as well as software
in which the accounting system, works. The type of the accounting system used
determines the operating environment. Both hardware and software are
interdependent. (MASANJA, 2020)The type of software determines the structure of
the hardware. Further, the selection of hardware is dependent upon various factors such
as the number of users, level of secrecy and the nature of various activities of
functional departments in an organization.
21
In the case of a club, where the number of transactions and their variety are relatively
low, a PC with standardized software may be sufficient. However, to manage the
copious data and complex reporting requirements of a major company organization
with a number of geographically dispersed factories and offices, more powerful
computer systems supported by sophisticated networks are necessary(MASANJA,
2020). Multi-user operating systems such as UNIX, Linux, and others are utilized to
meet these needs.
Computerized accounting system refers to the system of maintaining accounts using
computers. It involves the processing of accounting transactions through the use of
hardware and software in order to keep and produce accounting records and
reports(Abdulle et al., 2019).
2.2 Concept of Financial performance
According to Capon, et al (1996: 7) measures of financial performance take a variety
of forms. These measures differ from each other on several dimensions, and many
issues concern the choice of which particular financial measure to employ. Financial
decisions are often found to be set within a framework of organizational improvement
initiatives, and a number of such initiatives are at hand. (Dufera, 2010)The value-based
management approach and other organizational improvement initiatives extend over a
wide range of theoretical constructs and practices. The two best known value-based
management frameworks are, according to Oxalemia and Wihlborg (2002), the
shareholder value-added model developed by Rappaport (1986) and the economic
value-added model developed by Stern Stewart (1990). Four other shareholder value
management approaches commonly in use are the Balanced Scorecard (see, e.g.,
Kaplan and Norton, 1992), activity-based costing, cash value-added (see, e.g.,
Ottosson and Weissenrieder, 1996), and cash flow return on investment (see, e.g.,
Madden, 1999).
Organization improvement initiatives may still serve as a guide for financial decisions
within firms. These initiatives also resemble to a large extent earlier models such as
the PIMS model (Profit Impact of Marketing Strategies) (see e.g., Buzzell and Gale,
1987) which commonly utilized accrual-based accounting values. Thus, for example,
Rappaport’s model (1998) may provide a framework for management decisions. The
22
model consists of five levels. The corporate objective is separated into two valuation
components: cash flow from operations and the cost of capital.
According to Cochran and Wood (1984), the definition of corporate financial
performance is not debated in literature. Such a lack of discussion has caused
disagreement on how to measure the phenomenon. Business performance is the kind
of information toward which accounting institutions must show responsibility
(Gasparetto, 2004). However, one believes that corporate financial performance is
divided into two general categories: the first one regards the return to the investor; the
second one refers to accounting return (profit) (Cochran & Wood, 1984). McGuire,
Sundgren and Schneeweis (1988) argue that corporate financial performance uses both
financial variables and capital market measures.
2.3 The role of computerized accounting
The major aim of an accounting is to produce relevant information for decision makers
and stakeholders. This is due to the need and aim to produce reports at the right time
to the right people besides need for efficiency, Computerized accounting has speed
and accuracy and free timely reporting which becomes: he important aim of the system
(Meigs and Meigs, 1986,). I ‘he primary advantage of the computer is its incredible
speed. It’s noted that the time needed for a computer to post a transaction is within a
few millions of a second and also computer system enhances increased levels of speed
of financial information sharing among stakeholder and that this system speeds up the
processes of producing monthly and annual reports to the center pay rolls preparation
which would have otherwise been time consuming and tedious(For, 2013). Thus, the
Local Government with many employees finds it useful as pay roll system requires a
good deal of regular processing. Therefore, it’s on this speed that several advantages
accrue of a computerization process over the manual accounting system. Saving
money even though there is immediate cost of the software, you’re potentially saving
on the costs of IJN necessary audits as well as employing many employees. There is
quality of work produced which even motivates the staff or the employees of the Local
Government.
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The most popular system of recording of accounting transactions is manual which
requires maintaining books of accounts such as Journal, Cash Book, Special purpose
books, ledger and so on. The accountant is required to prepare summary of transactions
and financial statements manually. The advanced technology involves various
machines capable of performing different accounting functions, for example, a billing
machine. This machine is capable of computing discount, adding net total and posting
the requisite data to the relevant accounts.
Time: Paper works are involved in manual accounting; all the accounting activities are
carried out on paper manually and obviously, it takes much time and resources for the
average business organization and most especially, a financial institution that still uses
the manual system. Computerized accounting saves a lot of time where in, the
employee has to record the transactions and all the other calculations would be carried
out by the software either automatically or by a request Magdalene M, (2010).
Accuracy: I also agree with Magdalene M, (2010) again, that computerized accounting
is not only speedy but also accurate. With a computer being used to collect data and
change it into meaningful information that is used by management to make timely and
effective decisions, the computer carries out the entire data processing through
classifying, sorting, calculating, 7 summarizing the data and production of reports, as
stated by Birungi (2000). This entire process helps to minimize the risk of
miscalculations and other human errors that could have emerged as a result of manual
data processing.
2.4 The factors that influence financial performance
Leverage
In the quest to optimize their objective, which hinges primarily on quantifiable
performance, financial managers have adopted various capital structures as a means to
that goal. A firm can finance its investment by debt and/or equity. The use of fixedcharged funds, such as debt and preference capital along with the owner’s equity in
the capital structure is described as financial leverage or gearing (Dare and Sola, 2010).
Leverage refers to the proportion of debt and equity in the capital structure of a
24
firm(Pandey, 2007). The financing or leverage decision is a significant managerial
decision because it influences the shareholder’s return and risk and the market value
of the firm. The ratio of debt-equity has implications for the shareholder’s dividends
and risk, this affect the cost of the capital and the market value of the firm.
Liquidity
Liquidity measures the ability of the business to meet financial obligations as they fall
due, without disrupting the normal, ongoing operations of the business. Liquidity can
be analyzed both structurally and operationally. Structural liquidity refers to balance
sheet measures of the relationships between assets and liabilities and operational
liquidity refers to cash flow measures. Solvency measures the amount of borrowed
capital used by the business relative to the amount of owner’s equity capital invested
in the business. In other words, solvency measures provide an indication of the
business’ ability to repay all indebtedness if all its assets were sold. Solvency measures
also provide an indication of the business’ ability to withstand risks by providing
information about the operation’s ability to continue operating after a major financial
adversity (Harrington and Wilson, 1989).
Company Age
Several earlier studies (Batra, 1999; Lumpkin and Dess, 1999) argued that firm age
has an influence on its performance (Sorensen and Stuart, 2000) argued that
organisational inertia operating in old firms tends to make them inflexible and unable
to appreciate changes in the environment. Newer and smaller firms, as a result, take
away market share in spite of disadvantages like lack of capital, brand names and
corporate reputation with older firms (Kakani, Saha and Reddy, 2001).
Company Size
Previous studies in finance have shown that company size can predict the future stock
price (Simerly and Li, 2000). For instance, Hvide and These (2007) in their study
25
concluded that larger firms have better financial performance. Flamini et al (2009)
suggested that bigger firms are more competitive than smaller firms in harnessing
economies of scale in transactions and enjoy a higher level of profits. Athanasoglou et
al (2005) assert that increase in company size increases 12 the performance of the
bank. Almajali et al (2012) argued that the size of the firm can affect its financial
performance. However, for firms that become exceptionally large, the effect of size
could be negative due to bureaucratic and other reasons (Yuqi, 2007).
2.5 Relationship between computerized accounting and financial performance
According to Anderson (1992), there is a positive relationship between computerized
accounting systems and financial performance. He consented that computerized
accounting systems improve management activities such as decision making and
controlling Garbutt (1995). The system enables production of timely and reliable
information on which specific action or plans may be based. This improves financial
performance. Computerized accounting departments in business create audit trail by
which every transaction can be traced very fast. Garbutt (1995), says that proper
recording of transactions provides sufficient information as regards to performance
and financial position of the business. Boston, (1975), states that conducting business.
Therefore, proper accounting systems should be kept so at any required moment a
reference could be made on it and the combined efforts to all transactions. In order to
compete favorably, banks have resorted to computerization as a major tool for
improving service quality, hence improving their performances. The emergency of
electronic banking has incredibly reduced the need for direct link between the bank
and its customers. This is basically because internet, telephone and ATM banking
networks do complement each other to give customers a wider range of financial
services that can substitute those provided by traditional banking tools. Automation of
banking services enables customer satisfaction through its ability of speed, accuracy,
accessibility and flexibility in service provision.
26
Summary
A computerized accounting system is an accounting information system that processes
the financial transactions and events as per Generally Accepted Accounting Principles
(GAAP) to produce reports as per user requirements. Computerized accounting system
refers to the system of maintaining accounts using computers. measures of financial
performance take a variety of forms. These measures differ from each other on several
dimensions, and many issues concern the choice of which particular financial measure
to employ. Organization improvement initiatives may still serve as a guide for
financial decisions within firms. The major aim of an accounting is to produce relevant
information for decision makers and stakeholders. The most popular system of
recording of accounting transactions is manual which requires maintaining books of
accounts such as Journal, Cash Book, Special purpose books, ledger and so on.
Leverage refers to the proportion of debt and equity in the capital structure of a firm.
The financing or leverage decision is a significant managerial decision. there is a
positive relationship between computerized accounting systems and financial
performance. He consented that computerized accounting systems improve
management activities such as decision making and controlling.
27
CHAPTER THREE
METHODOLOGY
3.0 Introduction
This chapter contains research design, target population, sample size, sampling
techniques, data sources, data collection tools, validity and reliability of instrument,
data processing, data analysis, ethical considerations and limitations of study.
3.1 Research design
The study was based on cross-sectional research design. A cross-sectional study is a
type of observational study that analyzes data from a population, or a representative
subset, at a specific point in time that is, cross-sectional data. Quantitative approach
used in data collection. The researcher was used this kind of research design because
it is much cheaper to perform than other options that are available to researchers.
3.2 Target Population
The study was used a target population of 51 respondents. The target population is the
total group of individuals from which the sample might be drawn.
The target
population includes, 5 top managers of bank,15 employees of the Bank, 29 clients of
the bank and 2 officials from accounting department of the Bank. The researcher was
used these respondents because they are believed to have important information about
the study topic.
28
3.3 Sample size
The study was used Sloven’s formula to determine the sample size of the actual
respondents. Sloven’s formula states:
n=
N
1 + N(e)2
Where; 𝐧 = sample size; 𝐍 = target population; and 𝐞 = 0.05 level of significance
n =
51
51
1+51(0.0025)
n= 1.125 = 45 respondents
Therefore, the sample size is 45 respondents
3.0 Table showing target population and sample size
Category
Target population Sample size
Sampling
techniques
Top managers
5
4
Purposive
Employees of the Bank
15
13
Random
sampling
Clients of the Bank
29
26
Random
sampling
Accounting
department 2
2
officials
Total
Purposive
sampling
51
45
Source: Primary Data (2022)
3.4 Sampling techniques
3.4.1 Simple random sampling
The study was based on simple random sampling. The Simple Random Sampling is a
sampling technique where in every item of the population has an equal and likely
chance of being selected in the sample. Employees and clients of IBS Bank was
29
selected using simple random sampling. The researcher was used simple random
sampling because it offers a chance to perform data analysis that has less risk of
carrying an error.
3.4.2 Purposive sampling
The study was based on purposive sampling. Purposive sampling is a sampling
technique in which researcher relies on his or her own judgment when choosing
members of population to participate in the study. Top managers of IBS Bank,
Mogadishu and accounting department officials was purposively selected.
The
researcher used purposive sampling because there is still an opportunity to create
generalizations from the data.
3.5 Data sources
3.5.1 Primary Data
The study was used primary data. Primary data is the data which is collected from
some primary sources i.e., a source of origin where the data generate. Primary data
will be obtained from questionnaires. The researcher was used primary data because
it is more accurate because it is directly collected from the population.
3.5.2 Secondary Data
The study was based on secondary data. Secondary data refers to data which is
collected by someone who is someone other than the user. Secondary data will be
obtained from internet, libraries, journals, documents, reports, etc. The researcher will
also use secondary data because it is time saving.
30
3.6 Data collection tools
The researcher will use a self-administered questionnaire.
A self-administered
questionnaire (SAQ) refers to a questionnaire that has been designed specifically to be
completed by a respondent without intervention of the researchers (e.g. an interviewer)
collecting the data.
The researcher will distribute questionnaires to Managers,
employees, clients and accounting department officials of IBS Bank, Mogadishu. The
researcher will use self-administered questionnaire because respondents answer at
their suitability.
3.7 Validity and reliability of instrument (questionnaire)
3.7.1 Validity of the instrument
The researcher will also use Validity of the instrument. Validity refers to the degree to
which results obtained from analysis of the data actually represents the phenomenon
under study. In calculating validity, the researcher will ensure that questions are
relevant in order to ensure that data collected gives meaningful and reliable results
represented by variables in the study. The researcher will use the following formula
to establish validity of the research instrument as seen below.
Content Validity Index (CVI)
=
𝐍𝐮𝐦𝐛𝐞𝐫 𝐨𝐟 𝐪𝐮𝐞𝐬𝐭𝐢𝐨𝐧 𝐝𝐞𝐜𝐥𝐚𝐫𝐞𝐝 𝐯𝐚𝐥𝐢𝐝
𝐓𝐨𝐭𝐚𝐥 𝐧𝐨.𝐨𝐟 𝐪𝐮𝐞𝐬𝐭𝐢𝐨𝐧𝐬 𝐢𝐧 𝐭𝐡𝐞 𝐪𝐮𝐞𝐬𝐭𝐢𝐨𝐧𝐧𝐚𝐢𝐫𝐞
If the overall Content Validity Index (CVI) of the instrument is equal to the average
acceptable Index of 0.7 or above, then the instrument will be accepted as valid (Amin,
2005).
3.7.2 Reliability of the instrument
To ensure the reliability of the instrument, the researcher will use the test-retest
method. The questionnaire will be given to 10 people and after two weeks, the same
questionnaire will be given to the same people and the Cronbatch Alpha will be
computed using SPSS. The minimum Cronbatch Alpha coefficient of 0.75 will be used
to declare an instrument reliable (>0.75).
31
3.8 Data collection procedures
An introductory letter will be obtained from SNU. When it is approved, the researcher
will make a list of qualified respondents from Top managers of IBS Bank, Mogadishu,
Employees of the Bank, Clients of the Bank and Accounting department officials. The
researcher will then explain the purpose of study to the respondents and request them
to sign the informed consent form. The researcher will recruit and train research
assistants to collect accurate data timeously. The respondents will be requested to
answer in full and not to leave any part of the questionnaires unanswered. The
researcher and assistants will collect the questionnaires within two weeks from the
date of distribution. All returned questionnaires will be checked if they are all
answered.
3.9 Data Presentation
The data obtained from the questionnaires will be double checked to make sure that
the information provided is complete, consistent, reliable, and accurate. Data
processing will involve scrutiny of the responses provided by different respondents.
Data will be sorted, edited, and interpreted. The researcher will then code and tabulate
the data obtained. The data then will be used to reinforce information got from
questionnaires to draw conclusion and recommendations.
3.10 Data analysis
The quantitative data will involve information from the questionnaires only. Data
from the field will be too raw for proper interpretation. It will therefore be vital to put
it into order and structure it, so as to drive meaning and information from it. The raw
data obtained from questionnaires will be cleaned, sorted and coded. The coded data
will be entered into the Computer, checked and statistically analyzed using the
statistical package for social scientists (SPSS) software package to generate descriptive
and inferential statistics.
32
3.11 Ethical Considerations
To ensure ethical considerations in undertaking the study and the safety, social and
psychological well-being of the respondents involved in the study, the researcher will
get an introductory letter from the SNU. On the other hand, to ensure the safety of the
person and/or community involved in the study the researcher will get their consent of
the respondent before they fill in the questionnaires. The study will also ensure the
privacy and confidentiality of the information provided by the respondent which will
be solely used for academic purposes.
3.12 Limitations of the Study (Challenges faced)
Some respondents might be too busy with their daily schedules and might fail to spare
time to fill the questionnaires in time. In such circumstances, the researcher will give
ample time to those respondents. As a result of other academic work coupled with
shortness of time given for completion of this research work, the researcher will have
to battle with the limited time available to him in combining traveling to the place of
case study and attending lecture
CHAPTER FOUR
FINDINGS AND DISCUSION
4.0 Introduction
4.1 Findings
4.1.1 Demographic characteristics of respondents
Table 4. 1 Gender of respondent
Frequency
Percent
33
Valid
Female
4
8.9
Male
41
91.1
Total
45
100.0
Source: Primary data (2022)
The table 4.1 above, shows that 4(8.9%) of the respondents were female and
41(91.1%) of the respondents were male. This implies that the majority of the
respondents were male. This is because these respondents were believed to be more
hard working than the female.
Table 4. 2 Marital status
Frequency
Valid
Percent
Divorced
5
11.1
Married
15
33.3
Single
25
55.6
Total
45
100.0
Source: Primary data (2022)
The table 4.2 above indicates that 5(11.1%) of the respondents were divorced,
15(33.3%) of the respondents were married and 25(55.6%) of the respondents were
single. This implies that the majority of the respondents were single. This is because
the category of the people is believed to have better information about computerized
and financial performance.
Table 4. 3 Educational level
Valid
Frequency
Percent
Certificate
2
4.4
Degree
31
68.9
Diploma
5
11.1
Master's degree
7
15.6
Total
45
100.0
Source : Primary data (2022)
The table 4.3 above indicates that 2(4.4%) of the respondents were certificate,
31(68.9%) of the respondents were degree and 5(11.1%) of the respondents were
34
diploma, 7(15.6%) of the respondent were master's degree. This implies that the
majority of the respondents were Degree. This is because most of the people were poor
and they were not able the charges the master and etc.
Table 4. 4 Age of the respondent
Valid
Frequency
Percent
Below 20
10
22.2
Between 20-39
31
68.9
Between 40-59
4
8.9
Total
45
100.0
Source: Primary data (2022)
The table 4.3 above indicates that 10(22.2%) of the respondents were Below 20,
31(68.9%) of the respondents were Between 20-39 and 4(8.9%) of the respondents
were Between 40-59. This implies that the majority of the respondents were Between
20-39. This is because most of the people were young generation.
4.1.2 The role of computerized accounting
Table 4. 5 Computerized accounting has speed and accuracy and free timely
Frequency
Valid
Agree
Percent
11
24.4
Disagree
4
8.9
Neutral
5
11.1
Strongly agree
25
55.6
Total
45
100.0
Source: Primary data (2022)
The table 4.5 above shows that 11(24.4%) of the respondents were agreed, 4(8.9%) of
the respondents were disagreed, 5(11.1%) of the respondents were neutral and
25(55.6%) of the respondents strongly agreed with the statement that computerized
accounting has speed and accuracy and free timely. This implies that the majority of
the respondents were strongly agreed with that statement. This is because people are
35
believed that computerized accounting has many benefits like record keeping and time
saving.
Table 4. 6 Computer system enhances increased levels of speed of financial
information sharing among stakeholder.
Frequency
Valid
Agree
Percent
14
31.1
Disagree
3
6.7
Neutral
8
17.8
15
33.3
5
11.1
45
100.0
Strongly agree
Strongly disagree
Total
Source: primary data (2022)
The table 4,6 above indicates that 14(31.1%) of the respondents were agreed, 3(6.7%)
of the respondents were disagreed, 8(17.8%) of the respondents were
neutral,15(33.3%) of the respondents were strongly agreed and 5(11.1%) of the
respondents were strongly agreed with the statement that Computer system enhances
increased levels of speed of financial information sharing among stakeholder. This
implies that the majority of the respondents were strongly agreed.
Table 4. 7 Computerized accounting saves a lot of time where in, the employee
has to record the transactions
Frequency
Valid
Percent
Agree
14
31.1
Disagree
10
22.2
9
20.0
10
22.2
2
4.4
45
100.0
Neutral
Strongly agree
Strongly disagree
Total
Source: Primary data (2022)
It shows that 14(31.1%) of the respondents were agreed, 10(22.2%) of the respondents
were disagreed, 9(20%) of the respondents were neutral, 10(22.2%) of the respondents
strongly agreed and 2(4.4%) of the respondents were strongly disagreed with the
statement that Computerized accounting saves a lot of time where in, the employee
has to record the transactions. This implies that the majority of the respondents were
36
agreed with that statement. This is because that these kinds of people were believed
that this statement because computerized accounting has time saving and accuracy.
4.1.3 The factors that influence financial performance
Table 4. 8 Leverage refers to the proportion of debt and equity in the capital
structure of a firm
Frequency
Valid
Agree
Percent
11
24.4
6
13.3
Neutral
10
22.2
Strongly agree
14
31.1
4
8.9
45
100.0
Disagree
Strongly disagree
Total
Source: primary data (2022)
The table 4.8 above illustrates that 11(24.4%) of the respondents were agreed,
6(13.3%) of the respondents were disagreed, 10(22.2%) of the respondents were
neutral, 14(31.1%) of the respondents were strongly agreed and 4(8.9%) of the
respondents strongly disagreed with the statement that Leverage refers to the
proportion of debt and equity in the capital structure of a firm. This implies that the
majority of the respondents were strongly agreed with that statement.
Table 4. 9 Liquidity measures the ability of the business to meet financial
obligations
Frequency
Valid
Agree
Percent
10
22.2
9
20.0
13
28.9
Strongly agree
8
17.8
Strongly Disagree
5
11.1
45
100.0
Disagree
Neutral
Total
Source: primary data (2022)
37
The table 4.9 above displays that 10(22.2%) of the respondents were agreed, 9(20%)
of the disagreed, 13(28.9%) of the respondents were neutral, 8(17.8%) of the
respondents were strongly agreed and 5(11.1%) of them were strongly disagreed with
the statement that Liquidity measures the ability of the business to meet financial
obligations. This implies that the majority of the respondents were neutral.
Table 4. 10 Liquidity can be analyzed both structurally and operationally
Frequency
Valid
Percent
Agree
7
15.6
Disagree
14
31.1
Neutral
11
24.4
Strongly agree
8
17.8
Strongly disagree
5
11.1
45
100.0
Total
Source: Primary data (2022)
Table 4.10 above shows that 7(15.6%) of the respondents were agreed, 14(31.1%) of
the respondents were disagreed, 11(24.4%) of the respondents were neutral,
8(17.8%) of the respondents were strongly agreed and 5(11.1%) of them were
strongly disagreed with the statement that Liquidity can be analyzed both structurally
and operationally. This indicates that majority of the respondents were disagreed.
4.1.4 Relationship between computerized accounting and
financial performance.
Table 4. 11 Positive relationship between computerized accounting systems and
financial performance
Frequency
Valid
Agree
Percent
15
33.3
Disagree
4
8.9
Neutral
2
4.4
23
51.1
1
2.2
45
100.0
Strongly agree
Strongly Disagree
Total
38
Source: Primary data (2022)
Table 4.11 above indicates that 15(33.3%) of the respondents were agreed, 4(8.9 %)
of the respondents were disagreed, 2(4.4%) of the respondents were neutral, 23(51.1%)
of the respondents were strongly agreed and 1(2.2%) of them were strongly disagreed
with the statement that Positive relationship between computerized accounting
systems and financial performance. This shows that majority of the respondents were
strongly agreed. This is because the kind of this people strongly agreed with this
statement, they have positive relationship between computerized accounting and
financial performance.
Table 4. 12 computerized accounting systems improve management activities
such as decision making and controlling
Frequency
Valid
Agree
Percent
14
31.1
7
15.6
Neutral
10
22.2
Strongly agree
11
24.4
3
6.7
45
100.0
Disagree
Strongly disagree
Total
Source: Primary data (2022)
Table 4.12 above displays that 14(31.1%) of the respondents were agreed, 7(15.6 %)
of the respondents were disagreed, 10(22.2%) of the respondents were neutral,
11(24.4%) of the respondents were strongly agreed and 3(6.7%) of them were strongly
disagreed with the statement that computerized accounting systems improve
39
management activities such as decision making and controlling. This indicates that
majority of the respondents were agreed.
Table 4. 13 Computerized accounting departments in business create audit trail
Frequency
Valid
Agree
Percent
6
13.3
Disagree
10
22.2
Neutral
13
28.9
Strongly agree
12
26.7
4
8.9
45
100.0
Strongly Disagree
Total
Source: Primary data (2022)
Table 4.13 above indicates that 6(13.3%) of the respondents were agreed, 10(22.2 %)
of the respondents were disagreed, 13(28.9%) of the respondents were neutral,
12(26.7%) of the respondents were strongly agreed and 4(8.9%) of them were strongly
disagreed with the statement that Computerized accounting departments in business
create audit trail. This implies that majority of the respondents were neutral.
4.2 Discussion of findings
4.2.1 Demographic characteristics of respondents
The study was found out that 4(8.9%) of the respondents were female and 41(91.1%)
of the respondents were male. This implies that the majority of the respondents were
male. This is because these respondents were believed to be more hard working than
the female.
The study was illustrated that 5(11.1%) of the respondents were divorced, 15(33.3%)
of the respondents were married and 25(55.6%) of the respondents were single. This
implies that the majority of the respondents were single. This is because the category
of the people is believed to have better information about computerized and financial
performance.
The researcher revealed that 2(4.4%) of the respondents were certificate, 31(68.9%)
of the respondents were degree and 5(11.1%) of the respondents were diploma,
40
7(15.6%) of the respondent were master's degree. This implies that the majority of the
respondents were Degree. This is because most of the people were poor and they were
not able the charges the master and etc.
The study was indicated that 10(22.2%) of the respondents were Below 20, 31(68.9%)
of the respondents were Between 20-39 and 4(8.9%) of the respondents were Between
40-59. This implies that the majority of the respondents were Between 20-39. This is
because most of the people were young generation.
4.2.2 The role of computerized accounting
The study was revealed that 11(24.4%) of the respondents were agreed, 4(8.9%) of the
respondents were disagreed, 5(11.1%) of the respondents were neutral and 25(55.6%)
of the respondents strongly agreed with the statement that computerized accounting
has speed and accuracy and free timely. This implies that the majority of the
respondents were strongly agreed with that statement. This is because people are
believed that computerized accounting has many benefits like record keeping and time
saving. This is in line with (Meigs and Meigs, 1986,) who suggested that computerized
accounting has speed and accuracy and free timely so that computerized accounting
has many benefits like time saving accuracy and good speed.
The researcher was found that 14(31.1%) of the respondents were agreed, 3(6.7%) of
the respondents were disagreed, 8(17.8%) of the respondents were neutral,15(33.3%)
of the respondents were strongly agreed and 5(11.1%) of the respondents were strongly
agreed with the statement that Computer system enhances increased levels of speed of
financial information sharing among stakeholder. This implies that the majority of the
respondents were strongly agreed. This is in line with (For, 2013) who noted that
Computer system enhances increased levels of speed of financial information sharing
among stakeholder.
The study was displayed that 14(31.1%) of the respondents were agreed, 10(22.2%) of
the respondents were disagreed, 9(20%) of the respondents were neutral, 10(22.2%)
41
of the respondents strongly agreed and 2(4.4%) of the respondents were strongly
disagreed with the statement that Computerized accounting saves a lot of time where
in, the employee has to record the transactions. This implies that the majority of the
respondents were agreed with that statement. This is because that these kinds of people
were believed that this statement because computerized accounting has time saving
and accuracy. This is in line with Magdalene M, (2010) who noted that Computerized
accounting saves a lot of time where in, the employee has to record the transactions.
Because computerized accounting system has played the vital functions that includes
preparing financial statement of the year.
4.2.3 The factors that influence financial performance
The study was revealed that 11(24.4%) of the respondents were agreed, 6(13.3%) of
the respondents were disagreed, 10(22.2%) of the respondents were neutral, 14(31.1%)
of the respondents were strongly agreed and 4(8.9%) of the respondents strongly
disagreed with the statement that Leverage refers to the proportion of debt and equity
in the capital structure of a firm. This implies that the majority of the respondents were
strongly agreed with that statement. This is in line with (Pandey, 2007) who suggested
that Leverage refers to the proportion of debt and equity in the capital structure of a
firm so the financing or leverage decision is a significant managerial decision because
it influences the shareholder’s return and risk and the market value of the firm.
The study was found out that 10(22.2%) of the respondents were agreed, 9(20%) of
the disagreed, 13(28.9%) of the respondents were neutral, 8(17.8%) of the respondents
were strongly agreed and 5(11.1%) of them were strongly disagreed with the statement
that Liquidity measures the ability of the business to meet financial obligations. This
implies that the majority of the respondents were neutral. This is in line with
(Harrington and Wilson, 1989) they suggested that Liquidity measures the ability of
the business to meet financial obligations as they fall due, without disrupting the
normal, ongoing operations of the business.
The researcher revealed that 7(15.6%) of the respondents were agreed, 14(31.1%) of
the respondents were disagreed, 11(24.4%) of the respondents were neutral, 8(17.8%)
42
of the respondents were strongly agreed and 5(11.1%) of them were strongly disagreed
with the statement that Liquidity can be analyzed both structurally and operationally.
This indicates that majority of the respondents were disagreed. This in line with
(Harrington and Wilson, 1989) they suggested that Liquidity can be analyzed both
structurally and operationally.
4.2.4 Relationship between computerized accounting and
financial performance
The study was indicated that 15(33.3%) of the respondents were agreed, 4(8.9 %) of
the respondents were disagreed, 2(4.4%) of the respondents were neutral, 23(51.1%)
of the respondents were strongly agreed and 1(2.2%) of them were strongly disagreed
with the statement that Positive relationship between computerized accounting
systems and financial performance. This shows that majority of the respondents were
strongly agreed. This is because the kind of this people strongly agreed with this
statement, they have positive relationship between computerized accounting and
financial performance. This is in line with Garbutt (1995) who suggested that Positive
relationship between computerized accounting systems and financial performance.
The study was displayed that 14(31.1%) of the respondents were agreed, 7(15.6 %) of
the respondents were disagreed, 10(22.2%) of the respondents were neutral, 11(24.4%)
of the respondents were strongly agreed and 3(6.7%) of them were strongly disagreed
with the statement that computerized accounting systems improve management
activities such as decision making and controlling. This indicates that majority of the
respondents were agreed. This in line with Garbutt (1995) who suggested that
computerized accounting systems improve management activities such as decision
making and controlling so that computerized accounting systems enhance or makes
easy management activities of the company.
The study was illustrated that 6(13.3%) of the respondents were agreed, 10(22.2 %) of
the respondents were disagreed, 13(28.9%) of the respondents were neutral, 12(26.7%)
of the respondents were strongly agreed and 4(8.9%) of them were strongly disagreed
with the statement that Computerized accounting departments in business create audit
43
trail. This implies that majority of the respondents were neutral. This in line with
Garbutt (1995) who noted that Computerized accounting departments in business
create audit trail by which every transaction can be traced very fast.
CHAPTER FIVE
CONCLUSSIONS AND RECOMMENDATIONS
5.0 Introduction
5.1 Conclusions
5.1.1 The role of computerized accounting
The study was concluded that computerized accounting has speed and accuracy and
free timely so that computerized accounting has many benefits like time saving
44
accuracy and good speed. The study concluded that Computer system enhances
increased levels of speed of financial information sharing among stakeholder.
And also, it was concluded that Computerized accounting saves a lot of time where in,
the employee has to record the transactions. Because computerized accounting system
has played the vital functions that includes preparing financial statement of the year.
5.1.2 The factors that influence financial performance
The researcher was concluded that Leverage refers to the proportion of debt and equity
in the capital structure of a firm so the financing or leverage decision is a significant
managerial decision because it influences the shareholder’s return and risk and the
market value of the firm
The study was summarized that Liquidity measures the ability of the business to meet
financial obligations as they fall due, without disrupting the normal, ongoing
operations of the business. It was concluded that Liquidity can be analyzed both
structurally and operationally.
5.1.3 Relationship between computerized accounting and
financial performance
The study was concluded that Positive relationship between computerized accounting
systems and financial performance. The researcher was concluded that computerized
accounting systems improve management activities such as decision making and
controlling so that computerized accounting systems enhance or makes easy
management activities of the company.
The study was concluded that Computerized accounting departments in business create
audit trail by which every transaction can be traced very fast.
5.2 Recommendations
45

The researcher deeply recommends that IBS bank Mogadishu branch should
increase using modern computerized accounting system like QuickBooks,
Tally ERP-9 and etc, to improve their financial performance.

The study strongly recommends that should train their employees how to use
accounting software to increase their productivities and to strong their financial
performance.
References
Abdulle, A. S., Zainol, Z., & Ahmad, H. (2019). Impact Of Computerized Accounting
Information System On Small And Medium Enterprises In Mogadishu , Somalia :
The
Balance
Scorecard
Perspectives.
5,
159–165.
https://doi.org/10.35940/ijeat.E1023.0585C19
Dufera, A. (2010). Financial Performance Evaluation (A Case Study of Awash
International Bank (AIB). Journal of Emerging Market Finance, 11(1), 109.
For, E. (2013). no t t o N be C re R pu T bl is h no t t o N be C re R pu T bl is h.
Computerised Accounting System, 39–47.
Magdalene, M. (2011). Computerised Accounting and Financial Reporting a Case
Study of Stanbic Bank Garden City Branch a Research Report Submitted To
Makerere University Inpartial Fulfilment of the Requirement for the Award of
Thedegree of Bachelor of Commerce. 07.
MASANJA, N. (2020). The Impact of Accounting Information System on the
Financial Performance in Selected Private Companies in Arusha, Tanzania. SSRN
Electronic Journal, January. https://doi.org/10.2139/ssrn.3642377
Omondi, M. M. (2013). Factors Affecting the Financial Performance of Listed
Companies at the Nairobi Securities Exchange in Kenya. 4(15).
Shiraj, M. M. (2015). The impact of using computerized accounting systems (CAS) in
financial reporting among SMEs: (Special Reference to the South Eastern
Region, Sri Lanka). 5th International Symposium – 2015 South Eastern
University of Sri LankaAt: South Eastern University of Sri Lanka, 1–9.
Sugut, O. C. (2015). The Effect of Computerized Accounting Systems on the Quality
of Financial Reports of Non Governmental Organizations in Nairobi County,
Kenya. PhD Proposal, 1(October), 21–61.
46
APPENDICES
APPENDIX I: QUESTIONNAIRE
Dear respondent
My name is Yassin H, Mohamed, ID 0012354, A student of SOMALI
INTERNATIONAL UVERSITY(SNU). pursuing a bachelor’s of civil engineering.
We are currently carrying out a study about “Computerized accounting and financial
performance, a case study at IBS bank Mogadishu-Somalia.” as a requirement for the
award of bachelors of civil engineering. I humbly request you to be one of the
participants in this study and your cooperation will be of great importance to this study.
Your answers will be kept with utmost confidentiality.
SECTION 1: Demographic characteristics of respondents
1. Gender of respondent
Male
Female
2. Marital Status
Married
Single
Divorced
3. Educational level
47
Certificate
Diploma
Degree
Masters
4. Age of the respondent
Below 20
Between 20-39
Between 40-59
60 and above
Instructions: Please write your rating on the space before each option which
corresponds to your best choice in terms of level of motivation. Kindly use the
scoring system below:
Score
Response Mode
Description
Interpretation
1
Strongly agree
You agree with no doubt at all
Very satisfactory
2
Agree
You agree with some doubt
Satisfactory
3
Neutral
You are not sure about any
None
4
Disagree
You disagree with some doubt
Fair
5
Strongly disagree
You disagree with no doubt at all Poor
Section 2: The role of computerized accounting
No
Statement
1 2
1
Computerized accounting has speed and accuracy
and free timel.
2
Computer system enhances increased levels of
speed of financial information sharing among
stakeholder.
48
3 4
5
3
Computerized accounting saves a lot of time where
in, the employee has to record the transactions
Section 3: The factors that influence financial performance
No
Statement
1 2
1
Leverage refers to the proportion of debt and equity
3
4 5
in the capital structure of a firm
2
Liquidity measures the ability of the business to
meet financial obligations
3
Liquidity can be analyzed both structurally and
operationally
Section 4: Relationship between computerized accounting and financial
performance
No
Statement
1
Positive
1 2
relationship
between
computerized
accounting systems and financial performance
2
computerized
accounting
systems
improve
management activities such as decision making and
controlling.
49
3
4 5
3
Computerized accounting departments in business
create audit trail
Thanks
50