IMPACT OF AUTOMATED ACCOUNTING SYSTEM ON
PAYROLL PREPARATION IN SOME SELECTED LARGE
ORGANISATIONS
BY
MEJABI FOLORUNSHO
[CUGP040077]
A DISSERTATION SUBMITTED TO
DEPARTMENT OF ACCOUNTING
COLLEGE OF BUSINESS AND SOCIAL SCIENCES,
COVENANT UNIVERSITY OTA, NIGERIA.
IN PARTIAL REQUIREMENT FOR THE AWARD OF
DEGREE OF MASTER OF SCIENCE IN ACCOUNTING
(M.Sc ACCOUNTING)
JUNE 2006
DECLARATION
I declare that this project is based on a study undertaken by me in the Department of
Accounting, Covenant University, and Ota, Nigeria under the Supervision of Prof. P.F.
Izedonmi.
This work has not previously been submitted for the award of a degree elsewhere.
All ideas and views are products are products of my research. Where the views of others
have been expressed, they have been duly acknowledged.
MEJABI, Folorunsho.
i
CERTIFICATION
This is to certify that this project is written by MEJABI Folorunsho of
Department of Accounting, College of Business and Social Sciences, Covenant
University,Ota Nigeria under the my supervision:
SUPERVISOR:
………………………………
Prof. P.F. Izedonmi
HEAD OF DEPARTMENT
………………………………
Prof. P.F. Izedonmi
CHIEF EXAMINER
………………………………
DEAN, P.G. SCHOOL
………………………………
Prof. Olusola Ojo
ii
DEDICATION
This project is dedicated to
ALMITHY GOD
The creator and giver of Life, Wisdom and Understanding
iii
Table of Contents
PAGE
TITLE PAGE
DECLARATION………………………………………………
i
CERTIFICATION……………………………………………….
ii
TABLE OF CONTENTS………………………………………...
iv
ACKNOWLEDGEMENTS……………………………………….
vii
LIST OF TABLES……………………………………………….
ix
ABSTRACT……………………………………………………..
xii
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study……………………………………
1
1.2 Statement of the Problem…………………………………..
3
1.3 Objectives of the Study…………………………………….
5
1.4 Research Questions…………………………………………
5
1.5 Hypotheses of the Study……………………………………
6
1.6. Significance of the Study …………………………………
7
1.7 Justification of the Study…………………………………...
8
1.8 Scope and Limitation………………………………………
9
iv
1.9 Definition of Terms…………………………………………
9
CHAPTER TWO
REVIEW OF LITERATURE
2.0 Introduction…………………………………………………
11
2.1 Definition of Office Automation Terminology……………..
11
2.2 The Technologies of Information…………………………..
13
2.3 The Accounting System Overview…………………………
14
2.4.0 Computer and Accounting System…………………………
17
2.5.0 Basic Computer Components………………………………
21
2.6.0 General purposes Accounting Packages……………………..
25
2.7.0 What it really means to do Payroll……………………………
28
2.7.1 Payroll Accounting……………………………………………. 28
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Area of study……………………………………………………. 34
3.2 Research design………………………………………………..
34
3.3 Sample Size and Sampling Procedure…………………………
34
v
3.4 Research Instrument……………………………………………
35
3.5 Measurement of Variables…………………………………….
37
3.6 Sources and Collection of Data………………………………..
38
3.7 Data Analysis Techniques……………………………………..
39
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1 Presentation and Analysis of Data……………………………
40
4.2 Hypotheses Testing and Discussion of results……………….
53
CHAPTER FIVE
SUMMARY, COCLUSION AND RECOMMENDATION
5.1 Summary………………………………………………………
63
5.2 Conclusion……………………………………………………
65
5.3 Recommendation……………………………………………..
66
5.4 Recommendation for further studies…………………………
69
BIBLIOGRAPHY…………………………………………………
69
APPENDIX A: QUESTIONNAIRE
72
APPENDIX B: List of major firms used------------------------------------ 76
vi
ACKNOWLEDGEMENTS
First and foremost I am grateful to Almighty God the Creator, Giver of wisdom and
understanding for His guidance, protection and provision.
I wish to appreciate the Board of Regents and Management of Covenant University
starting from the Chancellor and President of Living Faith Church World-wide; Dr.
David Oyedepo for the initiative of coming with such a laudable program of Young
Academic Training Program (YATRAP) with Scholarship support without which this
program would not have been possible.
I wish to acknowledge the unwavering support and unrelenting effort of my able Head of
Department and supervisor, Prof P.F. Izedonmi; P.hD, F.C.A. (An accounting megastar, a
man of focus and purpose) who take care of us as his children. In short, He is a father.
I appreciate my mum Madam E.I. Mejabi and my uncle Col. A.A. Yakubu for always
being there. A shout out to all my brothers and sisters.
I appreciate with profound gratitude the staff, friends and students of Covenant
University for their immense contribution in making the programme a remarkable
success. Notable of mention are: Elder F.O. Iyoha (a father and a brother who is always
there to guide and give reasonable advice), Dr. T.O. Asaolu(who is always there for us)
Mr. John Obamiro (a brother indeed who has been there, and is still there and will
continue to be for me), Mr Damilola Orisajinmi (a literary megastar and reliable friend
indeed), Bolaji Ibrahim( a friend indeed) ,Mr. Enahoro, Leke, Odejayi, Mr. Adegbie,Mrs
Umoren, Mr. Fakile, Mr Idogun, Mr. Uwa, Miss Olatunji,Mr. Vincent,Mr Dan Mrs
Oyerinde,
vii
Mr. Obe, Mr.Oyero, Mr. Fred, Mr Adeyemo, Bukola(dear), Taylor, Evans, Sile,
Onyechachi Diana, Inyang Precious,Mirabel,Mr Awosanya, Mr. Faboyede and host of
others. I will not fail to remember my friend Mustafa in Chevron (Nig.) Ltd for his
assistance and encouragement. Thanks to all my able lecturers: Prof. A.E. Okoye,
Dr.(Mrs) Isemenla, Dr. Emma Okoye, Mr. Olubunmi Sowande(ICAN registrar), Mr.
Onakoya, Mr George Nnakhena, and Dr. (Mrs) Adedayo.
It is note worthy to mention the Victor and staff of Financial Services, Covenant
University who facilitates administration of my questionnaires, Mr. Oduoye of National
Orthopaedic hospital Igbobi who assisted me in administration of the questionnaires. My
special thanks to all who have contributed in one way or the other and not mentioned.
viii
LIST OF TABLES
TABLE
4.1.1:
DISTRIBUTION
OF
RESPONDENTS
ACCORDING
TO
SEX…………………………………………………………………………………….40
TABLE 4.1.2: DISTRIBUTION OF RESPONDENTS ACCORDING TO AGE
BRACKET……………………………………………………………………………..41
TABLE4.1.3: DISTRIBUTION OF RESPONDENTS BY THEIR QUALIFICATION..41
TABLE
1.4.4:
DISTRIBUTION
OF
RESPONDENTS
BY
THEIR
DESIGNATION/CARDRE……………………………………………………………42
TABLE 4.1.5: Distribution of respondents on the need for the use of computer as a
necessity in large organization…………………………………………………………..42
TABLE 4.1.6 Distribution of respondents on whether industrial peace is possible through
adequate information and prompt payment of salaries and wages………………………43
TABLE 4.1.7: Distribution of respondents on whether automation of accounting activities
reduces fatigue…………………………………………………………………………43
TABLE 4.1.8 Distribution of respondents on late payment of salaries could lead to low
productivity……………………………………………………………………………44
TABLE 4.1.9: Distribution of respondents on whether adequate information brings about
harmony in the work environment…………………………………………………….44
TABLE 4.2.0: Distribution of respondents on whether prompt payment of salaries could
serve as a tool in motivating workforce……………………………………………….45
TABLE 4.2.1: Distribution of respondents on whether money brings about conflict in the
work environment……………………………………………………………………..45
ix
TABLE 4.2.2: Distribution of respondents on whether salaries and wages payment
system can be delayed if payroll is not computerised…………………………………46
TABLE 4.2.3: Distribution of respondents on whether computer can handle almost all
areas of accounting…………………………………………………………………….46
TABLE 4.2.4: Distribution of respondents on whether labour can be annoyed for
receiving incorrect wages and salaries………………………………………………...47
TABLE 4.2.5: Distribution of respondents on “The use of computer reduces wastages in
your organization”……………………………………………………………………47
TABLE 4.2.6: Distribution of respondents on “New technology has helped in
dissemination of information in your work environment”……………………………48
TABLE 4.2.7 Distribution of respondents on: productivity is high in computerised and
peaceful work environment…………………………………………………………..48
TABLE 4.2.8: Distribution of respondents on “disharmony leads to achievement of
organisational goals”………………………………………………………………..49
TABLE 4.2.9 Distribution of respondents on good communication is life wire of every
organisation………………………………………………………………………..49
TABLE 4.3.0 “Distribution of respondent on hoarding of information affects smooth
running of organisation”…………………………………………………………..50
TABLE 4.3.1 Distribution of respondent on “resources of the organisation are wasted
through improper time & attendance management. ………………………………50
x
TABLE 4.3.2 distribution of respondent in the use of computer can lead to staff reduction
in the organisation…………………………………………………………………..51
TABLE 4.3.3 Distribution of respondent on computer as an affective tool of
communication and achieving the goals of the organisation”. ………………………51
ABLE 4.3.4 Distribution of respondents on “payroll preparation an interval part of
accounting activities through, which management pays attention to labour matters….52
TABLE 4.3.5 Distribution respondent on: payroll preparation can be complex and be
better handled by the use of computer……………………………………………….53
TABLE 3.2.6 Application of modern computer packages would bring a permanent
solution to payroll preparation problems ……………………………………………53
TABLE 4.3.7Correlation Analysis………………………………………………….55
TABLE 4.3.8 ANOVA ANALYSIS………………………………………………..56
TABLE 4.3.9 Table of means and standard deviation………………………………55
TABLE 4.4.0: ANOVA Results…………………………………………………….57
TABLE 4.4.1 Mean score the use of computer can lead to staff reduction in the
organisation………………………………………………………………………….58
TABLE 4.4.2: OBSERVED FREQUENCY………………………………………..59
TABLE 4.4.3: EXPECTED FREQUENCY………………………………………..59
TABLE 4.4.4: Chi-square(X2)………………………………………......................60
xi
ABSTRACT
This research project is aimed at studying the impact of automated accounting system on
the payroll preparation in large organisations selected from both Lagos and Ota.
In an attempt to study the impact of automated accounting system on payroll preparation;
data were collected through administration of questionnaires to various large
organisations located in Ota and Lagos. The data were analysed and average mean score
were. The four hypotheses were tested using correlation co-efficient, analysis of variance
(ANOVA), Mean score and using goodness of fit test (chi-square).
The study showed that computerisation is an effective tool of communication and
achievement of organisational goals; however majority of the respondents remained
indifferent as to whether computerisation reduces the labour force. The result of the
hypothesis tested also showed that application of modern computer packages may not
necessarily bring permanent solution to accounting and payroll processing problems in
organisations. The causes of errors, frauds and irregularities etc in many organisations
had been traced to unscientific and/manual mode of processing accounting information.
This has resulted, on many occasions to a substantial loss of return on investment.
Finally, Conclusion was drawn and recommendations were made based on the findings of
the study.
Xii
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Business organisations, especially the large ones exit to carry out certain duties and
responsibilities to their owners and those who have interest in them. One of the means by
which they could achieve their aims and objectives involving paying particular attention
to information needs of the parties they exist to serve, both internal and external.
Moreover, large business organisations normally have sizable number of employees on
their payroll. Coupled with this fact, they have to pay much attention to certain things to
make them operationally efficient; the main critical area now being considered is the
‘Time and Attendance Management’. Most companies are not really appreciating the
losses that can occur without proper time and attendance accounting.
The question that arises here is, how does an organisation go about processing the
information needed by internal and external parties in an efficient manner?
This is where the concept of “automation” comes in to play. This often denotes what has
been otherwise called the electronic office, new office technology, the office of the
future, computer aided office work etc.
Fredrick W. Taylor was generally referred to as the “father of scientific management”.
He and his associates argued that the application of scientific management in an industry
would increase productivity. The principle that was then mainly applicable to the factory
floor is now being extended to the office management through the concept of automation.
A similar and very crucial question that also arises is, how does the information get
across to the ultimate users such as the shareholders, trustees, creditors, government, and
the general public, at least to guide them in their decisions? Here we are talking of ideal
communication media and the concept of reporting. These are normally done through the
annual reports of companies in accordance with statutory requirements for each
organisation and monthly pay advice slips to the employees.
This means it is not enough just to process information, but also to communicate it within
the confine of the statutes. Here the field of study that becomes relevant to fulfil this
aspect is “accounting system”. The modern accounting system currently concerned with
producing two types of information:
•
Financial Accounting: for recording day-to-day activities of business and
producing period summaries.
•
Management Accounting (Costing Accounting) - for supplying of accounting
information to internal management in order that it can attempt to plan and
control its future business activities.
Accounting has been variously described as it were being carried out manually on books
and paper. Bookkeeping is a tedious process involving entry into the books of large
number of transactions. The nature of industry over the past years had brought some
brought changes and it is likely that the new millennium will bring even more change.
The environment and industrial conditions have become more volatile, there is increasing
usage of microelectronic in the factory and office, and there are increase and ever-
changing competitive threats especially from overseas. In addition, the role of accountant
as the sole or primary supplier of information to management is being challenged by
other information specialists, researchers, managerial economists and business studies
graduates. As payroll for preparation is an integral part of accounting activities and for
payroll section to fulfil her primary role, the main focus would be to look into the best
way to integrate effectively especially in the field of information technology and
reporting. The major activities in the payroll section in an organisation include among
others:
•
The need to reflect monthly payroll transactions on the general ledgers
and/or accounts;
•
The need to process and communicate salary information to staff timely;
•
The need to render accurate return of statutory deductions like payroll taxes,
pension scheme, national insurance scheme etc to the relevant statutory
authorities; should the above function continue to be done manually or to
look for and /or justify the need for more efficient means by which they
could be done?
The impact of automated accounting system on these
activities is what this research intends to study. The study will look into the
extent to which automation has helped in fulfilling the function stated
above, factors militating further successes and offer possible suggestions for
improvement.
1.2 STATEMENT OF THE PROBLEM
The importance of “Accounting for labour” to an organisation cannot be over
emphasized. To move the organisation forward, it requires taking a right decision at the
right time to ensure peaceful working environment and reduced operational cost. The
management group, the investors/fund donors, the employees, the government and the
general public have diverse interests in an organisation and hence they need timely,
accurate, relevant and cost effective information.
Thus, the challenge of the new millennium with the attendant threat in the field of
information technology had resulted in a shift from traditional way of data processing in
many industries. Today, it is expected that the armchairs attitude in the accounting scene,
which had been basically on the manual means of recording and processing information,
is no longer the order of the day.
Many organisations, especially the large ones have to pay special attention to the
information needs of the diverse group who have interest in them. Thus, the use of
electronic device such as computer would be of a great advantage, especially in the areas
of accounting in order to fulfil their corporate responsibilities effectively.
In the light of this, this study attempts to investigate the impact that a computerised
system will have in selected firms in and around Lagos and Ota in Ogun State on the
preparation of wages and salaries in terms of efficiency personnel requirements, training
needs, overall cost effectiveness and reliability.
1.3 OBJECTIVES OF THE STUDY
The general objective of the study is to determine the effectiveness or otherwise of a
computerised accounting system and its relevance in the processing and provision of the
necessary information for the diverse needs of the users in an organisation especially on
the issue of payroll preparation.
To meet this objective, the study will focus on the following specific objectives:
•
Identify the information processing policies in terms of automation concept.
•
Determine the difference between the previous and current information processing
system.
•
Identify changes brought about by the introduction of new accounting and payroll
packages: oracle for accounting, pay per for payroll, sage respectively in some
selected organisations.
•
Determine the attitude and constraints of the staff in the process of computerisation.
•
Ascertain the impact of computerisation on staff turnover in the organisation.
•
Determine the criteria for selecting accounting software and payroll packages
•
Evaluate computerised accounting system vis-vis its impact on payroll preparation
•
States in explicit terms what it really means to do payroll
1.4 RESEARCH QUESTIONS
Here, certain questions are raised; the provision of answers to them will be controlling
the idea of the research work. The questions pertain the crux of the matter and are
statements of major problems to be encountered as the progress is made on the work. The
questions, which are interdependent, include the following ones:
•
How necessary is accounting information to the survival of the business?
•
Is there any correlation between accounting system and payroll information
system?
•
Is there any difference in staff perception on the impact of automated accounting
system on payroll preparation?
•
Does the introduction of computerised accounting system into an organisation
reduce the labour force?
•
What initial problems are normally encountered with change in information
technology within an organisation?
•
What is the most suitable accounting system to maintain in an organisation?
•
What challenges has the concept of automation brought to the accounting scene?
•
What remedies are readily available to solving the various problems?
It is worth mentioning that a list of these research questions related to the already stated
ones will come up in due course.
1.5 HYPOTHESES OF THE STUDY
As contained in the statement of objectives, it is logical to identify some relationship
between different variables that now form the bases of hypotheses of the study. In order
to carry out this research, the following hypothesis would be postulated:
Hypothesis 1
H 0 : There is no significant correlation between the accounting information system and
payroll information system.
H 1 : There is a significant correlation between the accounting information system and the
payroll information system
Hypothesis 2
H 0: There is no difference in staff perspective about the effect of computerisation of
organisation operations and the achievement of it goals.
H 1 : There is difference in staff perspective about the effect of computerisation of
organisation operations and the achievement of it goals.
Hypothesis 3
H 0 : The introduction of computer would not bring about automatic reduction in
workforce
H 1 : The introduction of computer would bring about automatic reduction in workforce
Hypothesis 4
H 0 : Application of modern computer packages- the Oracle financials and Paypers,
Peachtree, Sage, Deceasy would not bring a permanent solution to accounting and payroll
processing problems.
H 1 : Application of modern computer packages- the oracle financials and paypers,
Peachtree, sage, Daceasy would bring a permanent solution to accounting and payroll
processing problems
1.6. SIGNIFICANCE OF THE STUDY
Computerisation is increasing phenomenons in which many organisations that are
automated have not take the full advantage of the importance of such venture. Evidence
of such importance is the increase awareness among various firms of the use computer.
Less focus has being placed on the specialised functions to which computer can be put to
use especially in the area of payroll preparation and Time and Attendance Management.
The significance of this study therefore is to highlight the importance of computerisation
as it affects payroll preparation. The study is carried out to assist the organisations to
know the importance of the concept of automation in information and communication
system, particularly in accounting for labour and payroll preparation and how effective
use of it as a key tool to improve organisational performance. The study will contribute in
no small measure in assisting management and administrators both in private and public
sectors to avoid danger of taking wrong decisions that would normally arise due to lack
of correct and reliable information.
1.7 JUSTIFICATION OF THE STUDY
As the main figure affected by this study is the organisation, especially the large ones,
this study would be carried out to assist the organisations to know the importance of the
concept of automation in information processing and communication system, particularly
in accounting and payroll preparation and how effective use of it as a key tool to improve
organisational performance. Equipped with this knowledge, management would thus
know how to respond to changes in the internal and external environment in which they
operate. It will assists the management both at private and public (government) levels to
avoid the danger of taking wrong decisions that would normally arise due to lack of
correct and reliable information or adoption of wrong information technology.
Nevertheless, students in allied disciplines such as finance, administration and
information technology can also benefit from this study, as it will educate them on the
impact of automation in an organisation and how it can be effectively used to produce
effective organisational performance. Thus, when they enter into the working
environment, they can cope with diverse situations. Consequently, the adoption of
modern information processing and communication systems in accounting for payroll
functions would definitely assist in organisational performance.
1.8 SCOPE OF THE STUDY
The scope this research is limited to selected few firms in Lagos and Ota, Ogun state
(Appendix-B).
In this study, effort is directed towards analysing the impact of a
computerised accounting system which is an ingredient of office automation and its
consequential effect on the payroll processing in these organisations.
1.9 DEFINITION OF TERMS
In a study of this kind, there is need to define some terms and abbreviations as they were
used in this research work.
AUTOMATION: methods and machines to save labour. It also refers to the electronic
office, new office technology, the office of the future, computer aided office work etc.
CRM: Customer Relationship Management
DOS: Disc operating System
GIGO: Garbage IN – Garbage out. A computer term meaning that the data delivered by a
computer is only as good as the data supplied to it. A reminder that incorrect and faulty
data will produce only incorrect output data.
GL: general ledger or a bounded book containing series of accounts.
IMPACT: The effect of a thing on another. To cause to come into being; a condition or
condition traceable to cause.
INTERACT: act on one another
INTERFACE: act on each other, the area, the surface, or boundary linking two systems to
act together as one.
IRC: Internal Revenue Code
Large organisation: Business unit with share capital of more than N5 million and a
workforce not less than 100.
NSITF: Nigeria Social Insurance Trust Fund
OA: Office Automation
Oracle: Computer software being used for processing financial transaction
PAYPERS: computer software being used for processing personnel data and payroll
information.
PM: Project Management
R & D: Research for Development
SDK: Software Development Kit
TAM: Time and Attendance Management
VAT: Value Added Tax.
CHAPTER TWO
REVIEW OF LITERATURE
2.0 INTRODUCTION
This chapter tries to present a review of previous works on the subject of this research
project for clarity and coherence; the review is divided into main sections and
subsections. These areas discussed include the subject of automation in relation to
information management in large organisations and it applications to accounting system
and payroll. The importance of modern information technology with particular reference
to computer applications in accounting system was discussed. What does it mean to do
payroll? The answer to this was also provided.
2.1 DEFINITION OF OFFICE AUTOMATION TERMINOLOGY
What does office automation mean? The advanced learner’s Dictionary of current
English by A.S.Hornsby; 1963 defined the word ‘automation’ as “methods and machines
to make industries more and more automatic, especially by means of electronic controls”.
Pritchard and Wilson (1982: 16) gave alternative terms for office automation. The
alternative terms are: ‘the electronic office, or ‘office technology’ and ‘the office of the
future’. Peltu, (1984:17) shared the same view by defining the term office automation as
“the electronic office, new office technology, office of future, computer-aided office
work etc”
Different but similar terms are used to describe the phenomenon-office automation, the
office of the future, office of information communication systems, integrated office
system. According to Douglas Englebart, who in many ways is the father of the ‘new
field’ has referred to it as one of the most significant industries of the century. With
hindsight, it appears that Englebart understand the scope and significance of the
revolution which he was precipitating. Tofflar describes it as part of the ‘Third Wave’-the
first being the development of agriculture and second being industrial revolution. The
industrialised world is moving into a period in which most office unless will be supported
directly through personal computer by a set of integrated communication and information
handling tools.
TapScott (1982:1) said, “one of the tools that shows the greatest immediate promise is the
computer, when it can be harnessed for direct on-line assistance, integrated with new
concepts and methods…Every person who does thinking symbolised concepts (whether
in the form of English language, pictographs, formed logic, or mathematics) should be
able to benefit significantly”.
Paul Strassman, one of the pioneer researchers in the area (office automation) has
explained that white-collar labour has been the fastest growing component of the
workforce in every industrial and agricultural sector of the economy while the need to
make appropriate capital expenditures has been understood. However, the fact remains
that office is a very labour intensive environment, which can be improved through the
judicious application of the new technologies.
The application of the office automation (OA) concept to accounting section is what is
being referred to as automated accounting system. This simply means that accounting
activities with respect to information processing are being carried out electronically using
machines such as computers and other devices.
2.2 THE TECHNOLOGIES OF INFORMATION
All office work is essentially in one way or the other concerned with information. Office
technologies are therefore devices and systems of certain types that can be applied to
information activities. Hence, typewriters generate information as documents, telephones
transmit information, copiers replicate images of information, filling cabinets store
information systematically to aid retrieval. Computer-based electronic technology offers
radical boost to the efficiency, variety and scope of information handling activities. This
new capability derives from the ability of the computers to deal in unified way with all
information. This information being translated into digital code that can handle
automatically by pre-stored programs.
The physical computer hardware-all things you can see and touch as a player of programs
just as a record player or video recorder comes alive when a record or tape is run on it.
Anderson(1988) described computer hardware as the “machines and devices, which make
up a computer system”.
Programs collectively known as software enable the same hardware to perform enormous
range of information handling actions. Anderson (1988) when describing the nature of
software made reference to: A concise dictionary of data processing and computer terms
published by Pitman Publishing and defined it as the programs without which a computer
is inanimate. It is also interesting to see the work of Oliver and Chapman (1991:47)
where the software is described as the term used to describe programs and associated
documentation, compared with hardware, the software used on a given computer is
relatively easy to change and it is that capability which gives computers their flexibility
of purpose.
2.3 THE ACCOUNTING SYSTEM OVERVIEW
Considering the views of Davidson and Weil (1983) “accounting is an information
system-an information system designed to communicate meaningful economic
information about an entity to interested parties.” The communication process involves
preparers and users of information”
Millichamp (1993:2) gave two definitions of accounting:
Accounting is the art of recording, classifying and summarising in a significant
manner and in terms of money, transactions and events which are part at least, of
financial character, and interpreting the results thereof.
Accounting is the process of identifying, measuring and communicating economic
information to permit informed judgements and decisions by the users of information.
In the 1998 edition of London AAT study pack on “Certificate in Accounting”(Paper A),
Defines accounting as “a set of techniques to record, analyse and summarise the
transactions of a business or other entity so as provide information to assist the
management or owners of that business or entity”.
From the above it would be seen that accounting message frequently summarises
substantial compilations of data. The analysis of accounting data and financial statements
is increasingly being carried on by means of statistical and mathematical techniques when
discussing the modern systems, the 1988 edition of London AAT study pack on
“Certificate in Accounting” has this to say:
The modern accounting system is currently concerned with providing two types of
information:
a) Financial Accounting: recording the day-to-day activities of business and
producing periodic summaries.
b) Management accounting (cost accounting): The supply of accounting information
to internal management in order that can attempt to plan and control future
business activities
Izedonmi (2001:446) viewed accounting information system (AIS) from two
perspectives, which are:
a) The narrow perspective: This approach view accounting information system (AIS)
essentially as a component of management information system (MIS).
b) The broad perspective: This perspective presents AIS as a discipline. As a
discipline, it has ten elements as shown below:
ELEMENTS OF ACCOUNTING INFORMATION SYSTEM
Data Bases
Business Operations
Technology
Transactions processing
Control
Management Decision
ki
AIS
Communications
Reporting
Sstem Development
Accounting & Audit
Source:
Gelinas U.J, Oram A.E, and Wiggins, W.P (1993) in Izedonmi (2001)
In another development, Millichamp (1992:202) also identified two types of accounting
systems as the Manual and the Computerised accounting systems.
Traditionally, businesses have produced their business documents, kept their books and
prepare their annual accounts manually. In recent years, the computer has been used in
many businesses to perform some or all of these tasks.
When comparing the two systems (manual and computerised), Millichamp A.H. (1992)
stressed: “the procedures are in some ways different in computer systems from those in
manual systems” and also that “the basic principles of business documentation, books of
accounts annual financial statements remain unchanged by the advent of computer”.
In view of the above, it would be seen that the use of computer in processing accounting
transactions is what is referred to as computerised accounting system or automated
system. In large organizations, the payroll processing is usually problematic, considering
the number of staff and volume of transactions involved
Experience had shown that staff that received his payslips so late looked worried. He was
not sure of it entitlement to receive his salary for the month. He rushed down to payroll
unit got assurance that he would receive his pay and that his salary had been sent to the
bank. The staff went back to work and his output for that day was exceedingly high.
Imagine if the answer he got from payroll was not satisfactory an adage says, “A hungry
man is an angry man”. It will definitely tell on his productivity, output and disloyalty,
simply because the staff was sick ‘financially’.
2.4 COMPUTERS AND ACCOUNTING SYSTEM
The first generation of computers was developed in the U.S.A after the Second World
War and by 1950s and 1960s they had become a relatively common feature in the
business world. Dery (1996:5) noted, “By the late seventies, computers were a fixture in
most businesses and growing numbers of consumers were buying home computers such
as the Apple II, the TRS-80, and the Commodore PET”.
These early machines were large and cumbersome and special areas of the enterprise had
to be set aside specifically for installation. They could only operate effective in specially
controlled environments. Air conditioning was essential because temperature had to be
carefully maintained and the air in the computer room had to be kept free from dust.
As well these physical demands, specialist staff had to be employed to make the system
work. Skilled programmers were required to write the complex software required of it.
Highly trained operators were needed to run the computer on day-to-day basis and
technicians had to be on hand to keep all parts of the system running smoothly.
Computer installations were therefore expensive to set up and run and hence may go
beyond the resources of small and medium size businesses. Nevertheless, many large
businesses were quick to see the advantages that could result from computerising certain
parts of their operations-particularly some of the more routine accountancy functions.
In many of these businesses the payroll function was one of the first areas to be handled
by computers. Large businesses at the time tended to be more labour intensive than they
are today. Calculating the wages due to very large numbers of employees could be a
time-consuming and repetitive task, which had to be done speedily and accurately. The
hours worked and rates of pay would vary from employee to employee, as would the
deductions for taxation and social security. Furthermore, the entire wages cycle had to be
repeated in many businesses on a weekly basis. Speed and accuracy were essential
because employees had to receive their wages timely and had to have confidence that the
system in operation had calculated fairly and precisely what was due to them. However,
any complexity essentially lay not in the system itself, which was highly structured and
could be reduced to a relatively small number of rules and procedures, but in large
number of individual calculations that had to be made. As such, this was an area, which
lent itself well to computerisation.
Other accountancy functions were quick to follow, for example, the maintenance and
administration of large number of credit customers’ accounts (the sales ledger function)
and large numbers of suppliers’ accounts (the purchases ledger function).
Boston Museum Annual Report (1991:18) Highlighted “it has been just over a decade
since the computer revolution moved beyond esoteric subcultures of researchers and
hobbyists to become a mass culture phenomenon with debut of the IBM personal
computer in late ’81 and the Apple Macintosh in early ‘84”
Otto (1993:14) wrote, “Now thanks to the transistor and silicon chip, the computer has
been reduced so drastically in both bulk and price that is accessible to millions…. The
‘information revolution’ that futurists have long been predicted has arrived”
In recent years, the development of the microchip has revolutionized computing.
Computers are not only much more powerful today than they used to be, but that power
can be packed into much smaller physical units. Costs have fallen drastically and it looks
as though they will continue to fall. It is now possible to buy for a relatively modest
outlay a small desktop microcomputer, which will outperform a roomful of early
computing equipment! The purchase of computing facility has thus been brought within
the budgets of all but the most modest businesses. Operating costs have fallen as well.
Today’s microcomputers are reliable and do not require special operating environments
or support staff (Dery 1996)
As microcomputers have become plentiful and cheap, so has there been a corresponding
revolution in software. A computer by itself is pretty useless – a bit like a record player
without any records, in fact! Software has to be acquired in order to get the
microcomputer to do things. There is now generally available a wide range of software to
undertake most business tasks. Much of this software is versatile, robust and ‘user
friendly,’ and as such can be used successfully by people who are not primarily computer
experts.
The purpose of this chapter is to be introduced to the computerized equivalent of the
manual accounting system with its documents, daybooks and ledgers that should have
been come about elsewhere.
Firstly, we shall look briefly at the hardware base for such a system. Then we shall
discuss the various types of accountancy software packages available. In particular, we
shall examine the features of and methods of operation of a typical general accountancy
packages for the small to medium-sized business. After that, we shall look at some of the
optional extras that can be added to enhance the basic system. Finally, we shall identify
the important questions that should be asked in any business before it accounts,
considering some of the pitfalls and how they are avoided.
2.5 BASIC COMPUTER COMPONENTS
THE HARDWARE
A typical business microcomputer consists of three basic units:
1. The Keyboard
This is used for entering data and for giving instructions to the computer. It is joined to
typical microcomputer by a cable. It resembles a typewriter keyboard but this has a
greater number of keys. It has usual alphanumeric typewriter keys and numeric keypads.
This duplicates the number keys and is useful where large amounts of numeric
information have to be entered. Other keys will have arrows on them. They are
directional keys and are used for moving about the computer screen. There may also be
number of functions keys-perhaps as many as 10 or 12. They are used for giving special
instructions to the computer. The actual instruction will vary from program to program
and so the function keys tend to be labelled merely F1, F2, and so on up to F10 or F12.
2. The System Unit
This houses the main electronics of the system. As well as containing the processors that
do all the data manipulation, it holds the main operating memory of the system. This is
called the microcomputer’s Random Access Memory (RAM) and its size is measured in
Kilobytes. One Kilobyte (often abbreviated as 1k) stands for 1,204 “bytes” and is roughly
sufficient memory to store 160 words of text. Most business microcomputers have a
RAM of 512K or 640K. The system unit may also contain a number of expansion slots
that can be used to plug in various cards to enhance the performance of the system.
The system unit usually houses the disk drives. Two floppy disk drives and one floppy
disk drive are common and should be regarded as the minimum for business
microcomputer. Floppy disks are magnetic medium used for storing programmes and
data. They are inserted into the disk drives for use and remove for storage away from the
microcomputer when not required.
3. The Monitor
Sometimes called the Visual Display Unit (VDU), this look like a television screen and is
used to display information. Thus, when the user types instructions in at the keyboard, the
system will respond by displaying messages or results on the monitor. The monitor,
which often sits on top of the system unit, may display information in either colour or
monochrome. Like the keyboard it connects to system unit by cable.
Some microcomputers also have what is known as a mouse. This is a small unit which
can fit the palm of the hand and which is connected by a cable to the system unit. It is
usually has one or two buttons on top that can be pressed to give instructions to the
computer and a rubber ball in the base. It sits on the desktop and is pushed around to
move a cursor or arrow about the monitor screen. This can be a very useful device in
some applications but is far essential in accountancy applications.
As well as the microcomputer, the other essential part of the hardware is printer. This is
necessary in accountancy applications
to print out statements and accounts, trial
balances, financial statements and will most likely have been be made by different
manufacturer. There is a wide range of printers available at all prices although; they can
be classified by technology they use. Dot matrix printers use tiny rectangular grid of dots
to print the characters. These printers can be fast and are capable of printing both text and
graphics but the output can be limited in quality. Daisywheel printers produce high
quality textual output equivalent in quality to a good electric typewriter, but they tend to
be slow and noisy and cannot print graphics. A new generation of 24 pin dot matrix
printers now on the market can print both text and graphics at high speeds at a quality
close to that of Daisywheel printers. Although relatively expensive they are ideal for
accountancy applications. Most expensive of all are laser printers, which can print a
mixture of high quality text and graphics quickly.
THE SOFTWARE
Hardware cannot operate without the software, no matter how powerful. Software is
supplied on floppy disks for reading in to the computer-usually with a manual (often
bulky) of instructions and guidance for the user. There are two main types of software:
(a) System Software-this controls the operations of the microcomputer system itself;
and
(b) Applications Software- These are programs purchased to get the computer to
perform certain specific tasks such as accountancy programs, word processing
programs and so on.
System Software
The systems software performs basic housekeeping tasks in the hardware. It is often
called computer operating system. It takes care of things like reading the signals sent
from the keyboard when the keys are pressed, displaying information on the monitor, and
sending the information to the printer for printing. It also manages the files of
information stored on the disks and this is a very important aspect of any operating
system. The operating system enables the microcomputer to read files from the disk into
computer’s RAM for processing and write files back to the disk for permanent storage. It
can also be used to delete files stored on disk, copy files from one disk to another, and
rename files and so on.
Little is standardised in the world of computing, however, and many different operating
systems are in use. Each brand of microcomputer tends to be set up to use a specific
operating system, which often supplied on disk when microcomputer is purchased. Some
microcomputers can run more than one operating system. The nearest there to an industry
standard is MS-DOS, which runs on IBM and IBM compatible microcomputers. This is
an operating system commissioned by IBM from the Microsoft Corporation, for use in its
first generation of microcomputers. Hence the name-MS stands for Microsoft and DOS
stands for Disk Operating System.
Application Software
Applications software enables the computer hardware to perform the specific tasks for
which the computer was purchase in the first place. So, if you wish to use a
microcomputer to keep the books you will have to purchase an appropriate accountancy
software package. These fall into several classes:
(a) General-Purpose Off-the self Packages: There is a bewildering range of such
packages available- especially for microcomputers running the MS-DOS
operating system. These packages are generally the cheapest to buy because the
software developers who have written them are able to spread the development
costs over relatively large user base. These programs vary considerably in price
and range of features offered. They tend to be geared to the generalised
requirements of trading businesses and offer bookkeeping ‘shell’ (rather like a set
of empty ledgers) which can be adapted to the particular requirements of the
business.
(b) Specialised packages designed to meet the requirements of particular types of
business. Thus there are accountancy packages specifically designed for use in
accounting firms, advertising agencies, bars, books publishers, builders and
contractors, bus companies, catering, charities, clubs and societies, dentists,
doctors, estate agents, garages, hotels, manufacturing- just to mention a few. This
kind of package tends to be more expensive than general purpose packages.
(c) In the unlikely event that the requirements of a business are so unusual that a
suitable package cannot be found from the first two categories a software house
can be commissioned to either adapt an existing package or to write a program
entirely from scratch.
2.6.0 GENERAL PURPOSE ACOOUNTANCY PACKAGES
Although as has already been mentioned, there is a bewildering range of general
accountancy packages available they tend to fall within four broad groups depending on
the range of facilities offered. These may be summarised as follows.
2.5.1Cash Book System
This group includes the simplest of systems, which merely emulate a manual cashbook.
Nevertheless, such a system might be suitable for a small business which does not sell on
credit and which either (a) provides a service or (b) buys its stock for cash or on credit
from a small number of suppliers.
2.5.2Basic Bookkeeping Systems
This might be suitable for the smaller business requiring basic bookkeeping and selling
mainly on a cash basis. Such a system will normally offer basic facilities for maintaining
a sales ledger (the account of credit customers), a purchase ledger (the accounts of credit
suppliers) and a nominal ledger (all other accounts including the bank account, cash
account, debtors’ control, creditor’s control, sales and purchases, etc). There should be
facilities for automatically producing quarterly VAT returns, a full audit trail (more about
this later) and perhaps bank reconciliation statements. The package will also generate
trial balances, profit and loss accounts and balance sheets.
1. Bookkeeping and Accountancy Systems
In addition to offering the basic facilities described above, these packages can cope
with greater numbers of customers and supplier accounts and offer more sophisticated
credit control facilities. They can print out customers’ statements and produce ageing
schedules of debtors. They may produce standard letters automatically to send to
customers whose accounts are overdue or who have exceeded their agreed credit limit
within this group, the more advanced packages may incorporate stock control
facilities. Separate records are maintained for each stock item recording units
purchased and sold and the balance of stock in hand. Such packages may be able to
generate invoices to send to customers. As invoices are produced, stock records are
automatically updated as well as the customers’ individual account, the sales account
and debtor’s control account. They can produce a variety of stock reports – for
examples: price lists, stock valuations, lists of stock items falling below a
predetermined recorder level, and so on. Many packages in this group also offer
payroll modules – usually available as an option add-on to the basic system.
2. Advanced Accountancy System
In addition to all the above features, these packages offer a range of advanced feature.
For example, there may be more sophisticated stock control features with automatic
order processing. These packages may offer facilities for dealing with multi-currency
transactions, and consolidation.
3. Working with a Basic Bookkeeping System
Before purchase accountancy software, package should be carefully evaluated to
ensure that it could offer the facilities required by the business. For example, there is
clearly little point purchasing a package that can only administer a maximum of 1,000
customer accounts, if the business has 2,400 credit customers! On the other hand, it
would be quite wasteful of resources to purchase a package with powerful and
sophisticated sales ledger routines if the business sells only on a cash basis – a
cheaper without a sales ledger would possibly be sufficient.
2.6WHAT IT REALLY MEANS TO DO PAYROLL
2.6.1PAYROLL ACCOUNTING
The employees form the backbone of any organization. They give their services to the
organization and in return get compensated. The cost of providing benefits to the
staff/employees in return for the services offered by them is termed as payroll cost. One
of the main components of payroll costs in any organization is the wages and salary paid
to the employees.
The earnings of an employee who is paid on hourly basis for manual work are usually
referred to in the business as wages. Compensation to employees is a very important head
of expenditure and it constitutes one of the main expenses items in the cost structure of
any organization. It is especially crucial for service industry because compensation to
employee may be the largest single expense item of their cost of operations. Besides
service agreement, accounting for payroll cost is affected in a significant manner by such
legislations enacted as Income Tax Act, Provident Fund Act, Pension Reform Act,
Monetisation policy and Minimum Wages Act etc. The various laws that effect payroll
also make necessary a number of special reports. For example, the legislation regarding
taxes on payroll accounts also specifies the procedure for remitting these taxes to the
Government and filling payroll returns. A sound system of payroll accounting ensures
that these payments are made and reports are filed on time. The procedures of
computation disbursement, preparation of payroll reports and accounting of payroll cost
are referred to as ‘Payroll Accounting’.
Payroll accounting is a very important sub-system of the accounting information system.
In fact, computation, disbursement and accounting of payroll cost are large part of the
accounting operation of any organization that employs a reasonably big work force. It
requires maintenance of specialized records to provide information to employees and
prepare payroll reports to comply with various laws. Payroll accounting is also a very
important part of the management information system. Payroll accountant occupies a
significant position in the human resource department of any organization and, thus, as
part for decision-making by management and other interested parties. Payroll accounting
system involves proper designing of forms and records not only to supply the information
required by employees and various laws, but also, to provide management with
information needed in its decision-making process. As a result, payroll accounting
occupies an important position not only as a sub-system of the accounting information
system but also of the management information system.
Employees are generally compensated on the basis of either number of hours worked or
the number of units produced or sales volume or the pay period or a combination of two
or any other combination. In time-basis, normally workers are paid at one rate when they
work in the normal working hours and a higher rate when they work overtime or during
night time. There can be similar type of incentive packages when the employees are paid
on piece-wage basis, with extra production over and above normal being rewarded at a
higher rate. Some employees are paid specified salary for a pay period. Their pay may be
determined as a package, inclusive of all allowances and perquisites. But, most of these
employees are entitled to graded system of salary, wherein they are entitled to annual
increments at a fixed rate. The payment to the staff can be made in cash or in kind in the
form of the perquisites. The example could be a furnished accommodation along with
domestic help given to the employee. Other examples may be free or subsidized (i) lunch
provided on working days (ii) transportation facilities (iii) medical facilities (iv) leave
travel facility etc. Some benefits may be extended during post-retirement period also.
Examples of post retirement benefits are health and medical benefits and pensions.
Besides the usual pay, employers sometimes give bonus as well, to commemorate certain
occasions or exceptional results. In nutshell, the payroll cost is TCTC (total cost of
company) on account of the employees, payable in any form at present or in future and
primarily includes:
•
Employees’ pay
•
Fringe benefits or perquisites
•
Post-retirement benefits
Employees’ Pay: Gross and Net
Salary payable to employees constitutes a major portion of total cost to company on
account of compensation payable to employees. Thus, computation of salaries is a very
important step in payroll accounting. The sum total of the payments made to an employee
in a pay period is called Gross Pay or Earnings or Salary. Sometimes, gross pay is
determined as a package, inclusive of all allowances and perquisites. But, most of the
times employees are entitled to graded system of salary, wherein they are entitled to
annual increments at a fixed rate. In such cases, gross pay includes (i) basic pay ( in the
grade) (ii) house rent allowance (iii) dearness allowance (iv) city compensatory
allowance (v) conveyance allowance etc. However, the employee doesn’t carry back the
entire money home because of income taxes or other compulsory payment toward the
provident fund schemes, group insurance schemes etc. The voluntary deductions are done
on the request of the employee himself. Sometimes the authorization needed from the
employee may be provided by the union agreement, service agreement, loan agreement
etc. The voluntary deductions could take form of insurance premiums, charitable
contributions, additional provident fund, house building advance, conveyance advance,
welfare schemes etc. The balances of gross pay left after all compulsory and voluntary
deductions is termed as Net Pay or carry home pay and it refers to the amount of pay the
employee receives for the pay period.
Payroll Records
The precise nature of the payroll records and procedures utilized by any enterprise
depends to a great extent on the size of its work force, applicable laws, and the degree to
which the record-keeping is computerized. Payroll system involves establishment of
special records such as employee’s time card, payroll register, individual employees
earnings record etc. to prepare and preserve payroll accounting data. However, two
records are basis to most payroll systems namely, the payroll register and the individual
employee earning record.
‘Payroll Register’ is a detailed listing of the complete payroll of the organization. Each
employee’s earnings and deductions for each period are contained in the payroll register.
Besides providing information on each employee’s earnings, summaries of salary details
of all employees for each pay period are prepared to provide basic data for recording
payroll cost in the journal. Thus, payroll register is a memorandum or supplementary
record showing in detail certain accounting information that will be recorded in the
summary form in a book of original entry. Accounting for payroll register also enables
disbursement of net pay preparation of pay cheques or otherwise.
‘Individual Employee Earnings Record’ contains much of the information needed to
permit the employer to comply various taxation and reporting requirements established
by law. From payroll register flows the employees’ earnings record that facilitates in
preparation of salary statement (pay slip), tax statement (salary certificate – F- 16A) and
payroll for tax return. The last column headed as ‘Cumulative Earnings’ is helpful in
preparing Form 16A (salary certificate, income-tax statement etc.). Employers also
provide employee’s with an earning statement for each pay period detailing, earnings and
deductions for that period. At the end of each financial year, an employer must supply
each employee a copy of form 16A, which summaries the employee’s earnings and the
salary withheld to pay income-tax. The employee uses this information to fill the incometax return, to which Form 16A is attached.
A specimen for calculation of monthly salaries of college teachers is as given below:
NAME OF THE COLLEGE
PAY SLIP FOR THE MONTH OF AUGUST 2002
NAME OF THE EMPLOYEE
DEPARTMENT
EMPLOYEE CODE
DESIGNATION
GRADE
BASIC PAY
BANK ACCOUNT NUMBER
: xxxxx
: xxxxx
: xxxxx
: Reader
: 12,000-420-18,300
: N 17,880
: xxxxx
EARNINGS
N
DEDUCTION
N
BASIC PAY
D.A.
H.R.A.
C.C.A
T.A.
17,880
8,761
5,364
300
800
P.F.
ADDL.P.F
I.TAX
H.B.A
L.I.C.
W.U.S.
COOP. BANK
D.U.T.A.
T.W.F.
T.S.A.
G.I.S.
1,788
3,000
5,000
750
369
60
100
5
20
145
240
11,477
33,105
NET PAY = N. 33,105-11,477 = N21,628
Source:
Summary of payroll preparation.
When a company hires its first employees, a number of factors immediately come into
play. That employee has to be paid on regular basis, and with each pay cheque the correct
taxes have to be paid to the federal, state and local governments. Taxes also need to be
filed with the right agencies at the right times, and records must be kept of all payments
to all parties.
Managing a payroll typically includes:
•
Calculating the earnings of employees;
•
Calculating the related withholding for taxes and other deductions;
•
Preparing the required taxes returns;
•
Filing returns with the appropriate government agencies;
•
Entering payroll data into your accounting software;
•
Managing employee personnel and payroll information;
•
Managing compliance with federal, state and local employment laws.
To do payroll correctly, employers must also comply with Internal Revenue Code (IRC)
tax rules and procedures. The IRC will dictate:
•
Whether or not federal tax coverage rules apply;
•
What an employee’s taxable wages are?
•
The amount of employment tax to be withheld and paid by the employer for each
employee;
•
The correct amount of employment taxes that have to be paid to the government
•
When, where and how employment taxes returns are filed
References
Accounting Association Technicians (AAT) Study Pack (1988) “Certificate in
Accounting, Basic Accounting” A Financial Training Courses Limited. London.
Anderson, R.G. (1988) Data Processing, Vol. 1.Principle and Practice, Sixth Ed,
Pitman Publishing: London.
Bergerud, M.and Gonzalez, J.(1984) World/information Processing concepts of
Office Automatrion, John Wiley & Sons Inc; U.S.A
Boston Museum Annual Report (1991) People and Computers: Milestones of a
Revolution, Boston.
Davidson, S. and Roman L.W (1993) Handbook of Modern Accounting.
Third Edition, Mc Graw-Hill Book Company, New York.
Dery, M.(1996) Escape Velocity: Cyber culture at the end of the Century. Hodder
and Stoughton. London
Hornsby, A.S (1963) Advanced Learner’s Dictionary of current English, Third
Edition, Oxford University Press. London.
Intuit Payroll Services, U.S. Payroll Made Easy: accountant.ntuit.com/payroll
Izedonmi .P.F and C.S. Ola (2001) Intermediate Accounting.2nd Edition.
BoficConsulting Group. Benin.
Izedonmi .P.F(2005) Manual on Research report writing 1st Edition. Lagos
Lucey T. (1988) Management Accounting 2nd Edition, D.P. Publications
Ltd.London.
Millichamp, A.H and Fraser R. (1993) Foundation Accounting with Information
Technology Applications. Third Edition, D.P. Publications Limited London.
Otto, F(1993) “The Computer Moves In”, Time, January 3.
Peltu, M (1984) Successful Management of Office Automation: NCC Publications,
Tap Scott, D. (1982). Office Automation, Plenum Press, New York and London.
Oliver, E.C., Chapman, R.J and French, C.S (1990).Data Processing and
Information Technology, An Instructional Manual for Business and
Accountancy students, eight editions, DP publications Limited London.
Harrap (1992) Dictionary of business and Finance, Clark Robinson Limited,
Edinburgh
Pritchard J .A .T and Wilson P.A (1982).Planning Office Automation, NCC
Publications, Manchester.
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.0 INTRODUCTION
This chapter deals with the area of study, population and instrument used for this
research. It also explains how the questionnaires are distributed and method used in the
data analysis.
3.1 AREA OF STUDY
The research was carried out in Lagos and Ota Ogun State of Nigeria. The area of study
is an industrialised town in Ogun State and Lagos, the commercial nerve centre of
Nigeria. The firms to be studied will be carefully selected among: Higher Institutions,
Heath institutions, Banks and others large Trading Companies.
3.2 RESEARCH DESIGN
This research project, using survey research design was essentially carried out to find out
the extent to which a computerised accounting system has contributed to the efficient
management of labour through the payroll preparation in large organizations.
3.3 STUDY POPULATION
The population for this study will include the total workforce of selected firms(AppendixB).
3.4 STUDY SAMPLE
A total sample of one-hundred and fifty respondents was selected in the organisations for
this study. The sample was selected using simple random sampling technique; this is to
allow every member of the organisation an equal chance of being included in the sample.
3.5 INSTRUMENTS FOR DATA COLLECTION
The various methods used in collection of data for this descriptive research were by
means of the following research instruments:
1.
Questionnaire
2.
Interview
3.
Observation schedule and
4.
Computer Network Services
5.
Telephone
Questionnaire
This refers to a set of questions relating to the aims and objectives of the study that were
drawn up and which the respondents answered. Closed (or otherwise called the structural
response type of questionnaire) and open ended questions were adopted from which the
respondents selected the options that apply to them.
The research made use of questionnaire for data collection. This consists of a set of
questions intended to answer basic problems (variables in the research). The preparations
of the questions were based on the aim of the hypotheses of the research.
Questionnaires were administered. The questionnaire was divided into three sections.
Section A required respondent’s personal data. Section B comprised of multiple questions
requiring ‘Strongly Agree’, ‘Agree’, ‘Undecided’, and ‘Disagree, Strongly Disagree”
.Section B was divided into two equal parts; the part one relates to computerised
accounting system, while the second part relates to payroll matters. Respondents were
advised to tick any answer they feel appropriate against the questions asked.Sectoin C
comprise open ended questions concerning computerisation, accounting system and
payroll system. The questionnaires were tested for validity and reliability.
Interview
This is a face-to-face interaction in which the interviewees were asked questions to which
they respond orally.
A mental note and written record of responses were made. The questions were prepared
and a definite appointment was made for the interview at a time and place convenient for
the respondent while a mental note and written record of the responses were made.
Observation Schedule
This is an instrument used to obtain direct information about an individual’s behaviour,
objects or situations. It was possible through this means to see at a glance the
characteristics of behaviours of the person being observed.
Internet Access through Computer
The benefits provided by Internet facility was used to the maximum in this research. It
was possible to browse through the Internet provided by the computer network facilities
from which some relevant facts were collected.
Computer is used to extent in order to eliminate interviewer-induced biases. It prevents
interviewers from asking questions that are not in according with the order of the
questions
Telephone
Telephone is used to eliminate discomfort that some respondents might feel in facing the
interviewer.
3.6 MEASUREMENT OF VARIABLES
The following variable had been identified for the purpose of this research:
Dependent Variable
This is the variable of primary interest for the purpose of this research, simply put; it is
“Payroll preparation” or “pay preparation in large organizations.” This is an issue for
investigation in the context of the automated accounting system.
Independent Variable
This is the one that influences the dependent variable in either positive way. In this
research project, the independent is the “automated accounting system.” This means that
the variance in the dependent variable is accounted for by the independent variable.
Moderating Variable
This is the variable that has strong continent effect on the independent variable and
dependent variable, i.e. its presence modifies the originally expected relationship between
the two. Simply put here, it is information management; the system of information
management to be adopted by an organization determines whether it would wish its
accounting system be computerised or not.
Intervening Variable
This is the variable that surfaces when independent variable operates to influence the
dependent variable. It helps to conceptualise and explain the influence of the independent
variable on the dependent variable.
3.7. DATA SOURCES AND COLLECTION
The data collected for this research include primary and secondary data. The primary data
were collected by means of direct interviews, questionnaire and observations. The
secondary data were collected from internal and external sources. Data from internal
sources include Annual Reports and Accounts; monthly pay records of employees; pay
advice slips and weekly Bulletin.
External sources were from journals of the Institute of Chartered Accountant of Nigeria
(ICAN) and London AAT Study Pack, Business Times, Financial Standard. Other
external sources include references to various textbooks, Internet access through
computers etc.
DATA ANALYSIS
The aim of the researcher here is to extract from data, findings, which are not apparently
existing before and which, would enable summary description of the subject studied to be
made. The findings here would enable the researcher to answer some research questions
and/ or test research hypotheses. The data will be analysed using tables, simple
percentages, Mean Score and Standard deviation, Correlation co-efficient, Analysis of
Variance and Chi- Square of descriptive statistics.
References
Adedayo O.A. (2000) Understanding Statistics. Revised Edition. JAS
Publishers. Lagos
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.0. INTRODUCTION:
This chapter is concerned with in-depth analysis of data collected by the researcher with
a view with presenting the findings of the study. The chapter is divided into two parts:
Part I: Analysis of survey results emanating from the opinion of survey questionnaire.
Part II: Testing of the hypothesis.
The questionnaire was grouped into three sections. The section A covered the biostatistical Data {personal Data} of the respondents, Section B covered close ended
question, relating to the study using likert scale technique. Section B is further divided
into two: {in} Matters relating computerized Accounting system {judgment Variable}
and the second part involves matters relating to payroll matters {dependent variable}.
Section C covered open ended questions also relating to the study. In analysis the data
collected, the percentage method, method of dispersion and measure of central tendency,
Chi-Square, Analysis of Variance (ANOVA), and Correlation co-efficient were adopted
in testing the hypothesis.
4.1ANALYSIS AND INTERPRETATION OF DATA OBTAINED
FROM QUESTIONNAIRE
4.1.0 PRESENTATION OF PRIMARY DATA
The analysis of the primary data is based on 70% of response {i.e. the percentage of the
retrieved questionnaires to the number of copies distributed}.This out of 150
questionnaires distributed, 105, were retrieved for analysis.
TABLE 4.1.1: DISTRIBUTION OF RESPONDENTS BASE ON SEX
SEX
FREQUENCY
MALE
46
FEMALE
59
TOTAL
105
Source: Researcher’s field survey Findings.
PERCENTAGE{%]
43.81%
56.19%
100%
The result of table 4.1.1 above shows that 43. 81% of the respondents were male,
while
56.19% were female. This shows that despite the imbalance in numbers, the researcher
survey has not been gender bias.
TABLE 4.1.2: DISTRIBUTION OF RESPONDENT BASED ON AGE BRACKET
AGE GROUP
FREQUENCY
15-25
12
26-35
35
36-45
40
Source: Researchers field survey Findings.
PERCENTAGE{&}
11.42%
33.33%
38:10%
The result from table 4.12, above indicated that 11.42% fall within 15to25 years age
group, 33.33% were within 26to35 years age bracket, while 38.10% were between 36-45
years age limits and 17.10% were for the ages 46 years and above. This indicates that the
majority of the respondents were between 36 and 45 years age limits.
TABLE4.1.3:
DISTRIBUTION
OF
RESPONDENTS
QUALIFICATION
Classification
No
Response
WASCE/GCE/NECO
10
NCE/OND
25
BSC/HND
50
MSC/MBA/PHD/PROFESSIONAL 20
105
of Percentage{%}
9.52%
23.81%
47.62%
19.05%
100%
BY
THEIR
The result from Table 4.1.3 above, majority of the respondents who were BSc/HND
holders with least number in WASCE/GCE/NECO holders.
TABLE 1.4.4: DISTRIBUTION OF RESPONDENT OF RESPONDENTS BY
THEIR DESIGNATION/CARDRE
CLASSIFICATION
PRINCIPAL STAFF
MANAGEMENT STAFF
SENIOR STAFF
GENERAL STAFF
OTHERS
FREQUENCY
5
8
42
39
11
105
Source: Researcher’s field survey Findings
PERCENTAGE{%}
4.76%
7.62%
47.62
37.14
10.47%
100%
Table 4.1.4 shows that majority of the staff survey were senior staff in their respective
organizations with 59.05%; the least surveyed been principal staff with 4.76%.
TABLE 4.1.5: Distribution of respondents on the need for the use of
computer as a necessity in large organization.
RESPONSE
STRONGLY AGREE
AGREE
UNDECIDED
DISAGREE
STRONGLY DISAGREE
F
50
55
0
0
0
105
Source: Researcher’s field survey Findings
Mean ¯X = ∑fx = 470
∑F
105
Standard Deviation =√∑ F(X-¯X)2
∑F
X
5
4
3
2
1
XF
250
220
0
0
0
470
(X-¯X)2
0.2704
0.2304
2.1904
6.1504
12.1104
F(X-¯X)2
13.52
12.672
0
0
0
26.192
=4.48
=√26.192
105
=0.50
The result from Table 4.1.5 indicates that the mean score of the responses is $.48 with
0.77 standard deviation around the mean. This means that most of the respondents agree
that the use of computer is a necessity in large organization
TABLE 4.1.6 Distribution of respondents on whether industrial peace is
possible through adequate information and prompt payment of salaries
and wages
RESPONSE
STRONGLYAGREE
AGREE
UNDECIDED
DISAGREE
STRONGLYDISAGREE
F
20
75
6
4
0
105
Source: Researcher’s field survey Findings
Mean X = ∑fx =
∑F
X
5
4
3
2
1
426
105
XF
100
300
18
8
0
426
(X-¯X)2
0.9695
.0036
1.1236
4.2436
9.3636
F(X-¯X)2
19.39
0.27
11.858
8.4872
0
40.0052
=4.06
=√40.0052
=0.62
Standard Deviation =√∑ F(X-¯X)2
∑F
105
From the result of Table 4.1.6 above, there is indication that the mean score of the responses
is 4.06 with a standard deviation of 0.62 around the mean. This means that at least 90%
of the respondents agree that industrial peace is possible through adequate information
and prompt payment of salaries and wages.
TABLE 4.1.7: Distribution of respondents on whether automation of
accounting activities reduces fatigue
RESPONSE
STRONGLY AGREE
AGREE
UNDECIDED
DISAGREE
STRONGLY DISAGREE
F
15
30
40
18
2
105
Source: Researcher’s field survey Findings
Mean X = ∑fx =
∑F
353
105
Standard Deviation =√∑ F(X-¯X)2
∑F
X
5
4
3
2
1
XF
75
120
120
36
2
353
=3.36
=√46.7408
105
=0.66
(X-¯X)2
2.6896
0.4096
0.1296
1.8496
5.5696
F(X-¯X)2
13.448
12.288
5.184
33.2928
11.1392
46.7408
From the value computed in Table 4.1.7. It could be deduced, that the mean score of the
responses is 3.36; with a deviation of 0.66 about it. It therefore follows that
majority of
respondents remain undecided on “automation of accounting activities reduces fatigue.”
TABLE 4.1.8 Distribution of respondents on late payment of salaries
could lead to low productivity
RESPONSE
STRONGLYAGREE
AGREE
UNDECIDED
DISAGREE
STRONGLYDISAGREE
F
21
46
15
18
3
103
Source: Researcher’s field survey Findings
Mean X = ∑fx =
∑F
373
103
X
5
4
3
2
1
XF
105
184
45
36
3
373
(X-¯X)2
1.9044
0.1444
0.3844
2.6244
6.8644
F(X-¯X)2
39.9924
7.0224
5.766
47.2392
17.9732
117.9932
=3.62
Standard Deviation =√∑ F(X-¯X)2
=√117.9932 =1.0703
∑F
103
The result from Table 4.1.8 above indicates that respondents agree to the fact that late
payment of salaries could lead to low productivity. This is based on the calculated mean
score of 3.62 and standard deviation of 1.07
TABLE 4.1.9: Distribution of respondents on whether adequate
information brings about harmony in the work environment.
RESPONSE
STRONGLY AGREE
AGREE
UNDECIDED
DISAGREE
STRONGLYDISAGREE
F
40
55
6
3
0
104
Source: Researcher’s field survey Findings
Mean X = ∑fx =
∑F
X
5
4
3
2
1
444
104
Standard Deviation =√∑ F(X-¯X)2
(X-¯X)2
0.5329
0.0729
1.6129
5.1529
10.6929
XF
200
220
18
6
0
444
=4.27
=√50.4616
=0.70
F(X-¯X)2
21.316
4.0095
9.6774
15.4587
0
50.4616
∑F
104
The respondents are of the strong opinion that adequate information brings about
harmony in the work environment; since the calculated mean score is 4.27 with standard
deviation of 0.7
TABLE 4.2.0: Distribution of respondents on whether prompt payment
of salaries could serve as a tool in motivating workforce.
RESPONSE
STRONGLYAGREE
AGREE
UNDECIDED
DISAGREE
STRONGLYDISAGREE
X
5
4
3
2
1
F
26
55
2
10
5
98
Source: Researcher’s field survey Findings
Mean X = ∑fx = 381
=3.89
∑F
98
XF
130
220
6
20
5
381
(X-¯X)2
1.2321
0.0121
0.7921
3.5721
8.3521
F(X-¯X)2
32.0346
0.6655
1.5842
35.721
41.7605
111.7658
Standard Deviation =√∑ F(X-¯X)2
=√111.7658 =1.07
∑F
98
The respondents agree to the fact that prompt payment of salaries and wages serves as a
vital tool in motivating workforce. This is based on the result from table 4.2.0 which has
a calculated mean score of 3.89 and standard deviation of 1.07;athough the number of
respondents drop to 98.
TABLE 4.2.1: Distribution of respondents on whether money brings
about conflict in the work environment
RESPONSE
STRONGLYAGREE
AGREE
UNDECIDED
DISAGREE
STRONGLYDISAGREE
X
5
4
3
2
1
F
4
21
40
24
13
102
Source: Researcher’s field survey Findings
Mean X = ∑fx = 285
=2.79
XF
20
84
120
48
13
285
(X-¯X)2
4.8841
1.4641
0.0441
0.6241
3.2041
F(X-¯X)2
10.7939
30.7461
1.764
14.9784
41.6533
99.9407
∑F
102
Standard Deviation =√∑ F(X-¯X)2
=√99.9407
=0.99
∑F
102
The mean score from Table 4.2.1 as calculated is 2.79 with a standard deviation of 0.99.
This implies that the respondents largely remain undecided about whether money brings
about conflict in work environment.
TABLE 4.2.2: Distribution of respondents on whether salaries and
wages payment system can be delayed if payroll is not computerised
RESPONSE
STRONGLYAGREE
AGREE
UNDECIDED
DISAGREE
STRONGLYDISAGREE
F
20
36
40
6
2
104
Source: Researcher’s field survey Findings
Mean X = ∑fx =
∑F
378
104
X
5
4
3
2
1
XF
100
144
120
12
2
378
(X-¯X)2
1.8769
0.1369
0.3969
2.6569
6.9169
F(X-¯X)2
37.538
4.9284
15.876
15.9414
13.8338
88.1176
=3.63
Standard Deviation =√∑ F(X-¯X)2
=√88.1176
=0.62
∑F
105
From the computation in the table 4.2.2 above, it could be seen that the mean score of
responses is 3.63, with a deviation of 0.62 about it. It therefore follows that salaries and
wages payment system could be delayed if payroll is not computerised.
TABLE 4.2.3: Distribution of respondents on whether computer can
handle almost all areas of accounting.
RESPONSE
STRONGLYAGREE
AGREE
UNDECIDED
DISAGREE
STRONGLYDISAGREE
F
2
3
10
68
15
98
Source: Researcher’s field survey Findings
Mean X = ∑fx =
∑F
X
5
4
3
2
1
203
98
XF
10
12
30
136
15
203
(X-¯X)2
8.5849
3.7249
0.8649
0.0049
1.449
F(X-¯X)2
28.3445
11.1747
8.649
0.3332
17.1735
65.6749
=2.07
=√65.6749
=0.82
Standard Deviation =√∑ F(X-¯X)2
∑F
98
From the values in Table 4.2.3, it can be observed that the mean score of responses is
2.07 and standard deviation of 0.81.this is to say that majority of the respondents disagree
with the statement that computer can handle all area of accounting
TABLE 4.2.4: Distribution of respondents on whether labour can be
annoyed for receiving incorrect wages and salaries.
RESPONSE
STRONGLYAGREE
AGREE
UNDECIDED
DISAGREE
STRONGLYDISAGREE
F
30
49
10
5
1
95
Source: Researcher’s field survey Findings
Mean X = ∑fx =
∑F
X
5
4
3
2
1
387
95
Standard Deviation =√∑ F(X-¯X)2
∑F
XF
150
196
30
10
1
387
=4.07
=√43.393
95
=0.67
(X-¯X)2
0.9
0.0049
1.1449
4.2845
9.4245
F(X-¯X)2
0.8649
0.2401
11.449
214245
9.4245
43.393
It is evident from the values calculated in Table 4.2.4 where the mean score is 4.07 and
standard deviation of 0.67. This is based on the frequency of 95.the respondents agree to
the fact that labour can be annoyed for receiving incorrect wages.
TABLE 4.2.5: Distribution of respondents on “The use of computer
reduces wastages in your organization”.
RESPONSE
STRONGLYAGREE
AGREE
UNDECIDED
DISAGREE
STRONGLYDISAGREE
F
29
51
10
2
3
95
Source: Researcher’s field survey Findings
Mean X = ∑fx =
∑F
X
5
4
3
2
1
XF
145
204
30
4
3
386
(X-¯X)2
0.8836
0.0036
1.1236
4.2436
9.3636
F(X-¯X)2
25.6244
0.1836
11.236
8.4872
28.0908
73.622
=4.06
386
95
=√73.622
=0.88
Standard Deviation =√∑ F(X-¯X)2
∑F
95
The values computed from the Table 4.2.5 shows a mean score of 4.06 based on the
standard deviation of 0.88.From the result above it could concluded that computer
reduces wastages in organizations.
TABLE 4.2.6: Distribution of respondents on “New technology has
helped in dissemination of information in your work environment”
RESPONSE
STRONGLYAGREE
AGREE
UNDECIDED
DISAGREE
STRONGLYDISAGREE
F
10
50
36
3
2
101
Source: Researcher’s field survey Findings
Mean X = ∑fx =
∑F
366
101
X
5
4
3
2
1
=3.62
XF
50
200
108
6
2
366
(X-¯X)2
1.9044
0.1444
0.3844
2.6244
6.8644
F(X-¯X)2
19.044
7.22
13.8384
7.8732
13.7288
61.7044
Standard Deviation =√∑ F(X-¯X)2
=√61.7044
=0.61
∑F
101
From the values computed in Table 4.2.5, a reasonable number of respondents agree with
the fact that “New technology has helped in dissemination of information in the work
environment”. This conclusion is arrived at with a mean score of 3.62 and standard
deviation of o.61.
TABLE 4.2.7 Distribution of respondents on: productivity is high in
computerised and peaceful work environment.
RESPONSE
STRONGLYAGREE
AGREE
UNDECIDED
DISAGREE
STRONGLYDISAGREE
F
30
60
5
2
1
98
Source: Researcher’s field survey Findings
Mean X = ∑fx = 410
=4.18
∑F
98
Standard Deviation =√∑ F(X-¯X)2
∑F
X
5
4
3
2
1
=√48.6952
98
XF
150
240
15
4
1
410
(X-¯X)2
0.6724
0.0324
1.3924
4.7524
10.1124
F(X-¯X)2
20.172
1.944
6.962
9.5048
10.1124
48.6952
=0.71
From the table 4.2.6, where the calculated mean score is 4.23 with a standard deviation of
0.71. It can be deduced that the respondent of the strong opinion that productivity is high
in a computerised and peaceful work environment.
TABLE 4.2.8: Distribution of respondents on “disharmony leads to
achievement of organisational goals”.
RESPONSE
STRONGLYAGREE
AGREE
UNDECIDED
DISAGREE
STRONGLYDISAGREE
X
5
4
3
2
1
F
0
0
6
45
51
102
Source: Researcher’s field survey Findings
XF
5
4
18
90
51
158
(X-¯X)2
11.9025
6.0025
2.1025
0.2025
0.3025
F(X-¯X)2
0
0
12.615
9.1125
15.4275
37.155
Mean X = ∑fx =
∑F
158
102
=1.55
Standard Deviation =√∑ F(X-¯X)2
∑F
=√37.155
102
=0.60
The respondents disagree with the statement that “disharmony leads to achievement of
organisational goals’ this can be seen from the table 4.2.7 where the mean score
calculated is 1.55 with the standard deviation of 0.60.
TABLE 4.2.9 Distribution of respondents on good communication is life
wire of every organisation
RESPONSE
STRONGLYAGREE
AGREE
UNDECIDED
DISAGREE
STRONGLYDISAGREE
F
30
52
6
1
1
90
Source: Researcher’s field survey Findings
Mean X = ∑fx =
∑F
X
5
4
3
2
1
379
90
XF
150
208
18
2
1
379
(X-¯X)2
0.6241
0.0441
1.4641
4.8841
10.3041
F(X-¯X)2
18.723
2.2932
8.7846
4.8841
10.3041
44.989
=4.21
Standard Deviation =√∑ F(X-¯X)2
∑F
=√44.989
90
=0.71
The respondent in table 4.2.8, agreed to the fact that good communication serves as a life
wire in every organisation this as a result of the mean score of 4.21 with standard
deviation of 0.71
TABLE 4.3.0 “Distribution of respondent on hoarding of information
affects smooth running of organisation”
RESPONSE
STRONGLYAGREE
AGREE
UNDECIDED
DISAGREE
STRONGLYDISAGREE
X
5
4
3
2
1
F
45
46
5
0
0
XF
225
184
15
0
0
(X-¯X)2
0.2601
0.2401
0.2201
6.2001
12.1801
F(X-¯X)2
11.7045
11.0446
1.1005
0
0
91
Source: Researcher’s field survey Findings
Mean X = ∑fx =
∑F
409
91
409
23.8496
=4.49
Standard Deviation =√∑ F(X-¯X)2
∑F
=√23.8496
91
=0.51
The table 4.2.9 indicated that a mean score of 4.49 and standard deviation of 0.61. it is
evident from the values computed above shows the hoarding of information normally
affects the smooth running of organisation
TABLE 4.3.1 Distribution of respondent on “resources of the
organisation are wasted through improper time & attendance
management.
RESPONSE
STRONGLYAGREE
AGREE
UNDECIDED
DISAGREE
STRONGLYDISAGREE
X
5
4
3
2
1
F
XF
36
180
40
184
10
30
2
4
4
4
98
402
Source: Researcher’s field survey Findings
Mean X = ∑fx = 402
=4.10
∑F
98
(X-¯X)2
0.81
0.01
1.21
4.41
9.61
F(X-¯X)2
29.16
0.46
12.1
8.82
38.44
88.98
Standard Deviation =√∑ F(X-¯X)2
=√88.98
=0.95
∑F
98
The respondent are of the opinion that resources of the organisation are wasted through
improper time & attendance management. This conclusion is arrived at because the
calculated mean score from the table above clearly shows a mean score of 4.10 and a
standard deviation of 0.95 around it.
TABLE 4.3.2 distribution of respondent in the use of computer can lead to staff
reduction in the organisation
RESPONSE
STRONGLYAGREE
AGREE
UNDECIDED
DISAGREE
STRONGLYDISAGREE
Mean X = ∑fx =
∑F
X
5
4
3
2
1
F
XF
10
50
21
84
40
120
21
42
6
6
98
302
Source: Researcher’s field survey Findings
302
=3.08
98
(X-¯X)2
3.6864
0.8464
0.0064
1.1664
4.3264
F(X-¯X)2
36.864
17.774
0.256
24.4744
25.9584
105.3468
Standard Deviation =√∑ F(X-¯X)2
=√105.3468 =1.037
∑F
98
The respondent remain largely undecided on the use of computer may possibly reduce the
staff in an organisation. This is based on the fact that mean average calculated from the
table 4.3.2 clearly indicated an average of 3.08 and standard deviation of 1.037
TABLE 4.3.3 Distribution of respondent on computer as an affective
tool of communication and achieving the goals of the organisation”.
RESPONSE
STRONGLYAGREE
AGREE
UNDECIDED
DISAGREE
STRONGLYDISAGREE
F
20
51
6
2
5
84
Source:Researcher’s field survey Findings
Mean X = ∑fx =
∑F
331
84
Standard Deviation =√∑ F(X-¯X)2
∑F
X
5
4
3
2
1
XF
100
204
18
4
5
331
(X-¯X)2
1.1236
0.0036
0.8836
3.7636
8.6436
F(X-¯X)2
22.472
0.1836
5.3016
7.5272
8.6436
44.128
=3.94
=√44.128
84
=0.53
Respondent agree to the fact that computer server as an effective tools of communication
and achievement of organisational goals in any organisation. This is based on the mean
average of 3.94 and standard deviation of 0.53 calculated in the table 4.33 above.
TABLE 4.3.4 Distribution of respondents on “payroll preparation an interval part
of accounting activities through, which management pays attention to labour
matters
RESPONSE
STRONGLYAGREE
AGREE
UNDECIDED
DISAGREE
STRONGLYDISAGREE
F
61
34
4
0
0
99
Source: Researcher’s field survey Findings
Mean X = ∑fx =
∑F
X
5
4
3
2
1
453
99
XF
304
136
12
0
0
453
(X-¯X)2
0.180
0.332
2.484
6.636
12.788
F(X-¯X)2
10.98
11.29
9.936
0
0
32.206
=4.58
Standard Deviation =√∑ F(X-¯X)2
=√32.206
=0.57
∑F
99
The calculated mean score {x} from the table above {i.e. 4.58} strongly agree with the
fact that “payroll preparation is an integral part of accounting activities through which
management pays attention to labour matters”.
TABLE 4.3.5 Distribution respondent on: payroll preparation can be
complex and be better handled by the use of computer
RESPONSE
STRONGLYAGREE
AGREE
UNDECIDED
DISAGREE
STRONGLYDISAGREE
X
5
4
3
2
1
F
10
45
30
5
6
XF
50
180
90
10
6
(X-¯X)2
2.25
0.25
0.25
2.25
6.25
F(X-¯X)2
22.5
11.25
7.5
11.25
37.5
90
Source: Researcher’s field survey Findings
Mean X = ∑fx =
∑F
336
96
Standard Deviation =√∑ F(X-¯X)2
∑F
=3.5
=√90 =0.97
96
it can be seen from table above that the mean score of responses is 3.5 and it has a
standard deviation of 0.968 around it is therefore, the conclusion that can be drawn here
is that payroll preparation can be complex and be better handled by the use of computer.
TABLE 3.2.6 Application of modern computer packages would bring a
permanent solution to payroll preparation problems
RESPONSE
STRONGLYAGREE
AGREE
UNDECIDED
DISAGREE
STRONGLYDISAGREE
F
XF
4
20
10
40
56
168
30
60
2
2
102
290
Source: Researcher’s field survey Findings
Mean X = ∑fx =
∑F
290
102
Standard Deviation =√∑ F(X-¯X)2
∑F
X
5
4
3
2
1
(X-¯X)2
4.6656
1.3456
0.0256
0.7056
3.3856
F(X-¯X)2
18.6624
13.456
1.4336
21.168
6.7712
61.4912
=2.84
=√61.4912
102
=0.78
From the calculated mean in the table above, the majority of respondents largely remain
undecided. This is based on the fact that the mean score is 2.84 with a standard deviation
of 0.743
4.2.0 HYPOTHESES TESTING
The main objective of hypothesis is to provide a starting point for investigating a research
problem and at the same time dissects the investigation, with the objective of ensuring
that the research does not deviate from the purpose of the study. Hypothesis is an
educated guess of a possible solution for a particular problem. It is a conjecture stated in
advance about what could be expected to occur under a given condition prior to
observation. In other words, a hypothesis predicts the outcome of the study. Therefore,
hypothesis is a provisional statement to guide investigation.
4.2.1: NULL AND ALTERNATE HYPOTHESIS
The two types of hypotheses that are central in this study are the null and alternative
hypotheses. The null hypotheses are stated in negative form being symbolised by H 0 and
its alternate H 1 .
The statistical tests of the null hypothesis may suggest the rejection of the H 0 at a
particular level of significance and degree of freedom. The rejection of null hypothesis
signals an automatic acceptance or non-rejection of the alternate hypothesis.
HYPOTHESIS ONE:
H O : There is no significant correlation between accounting information system and
payroll information system.
H 1 : There is significant correlation between accounting information system and payroll
information system.
The correlation coefficient can be computed using Karl Pearson’s Product moment
correlation coefficient given as:
r = N∑XY -∑X∑Y
√ [N∑X2 – (∑X)2][N∑Y2-(∑Y)2]
Table 4.3.7: Correlation Coeffient
X
4.48
3.36
4.27
4.06
3.62
4.18
1.55
4.21
4.49
3.08
3.94
41.24
Y
4.06
3.62
3.89
2.79
3.63
2.07
4.07
4.1
4.58
3.5
2.84
39.15
X2
Y2
20.0704
11.2896
18.2329
16.4836
13.1044
17.4724
2.4025
17.7241
20.1601
9.4864
15.5236
161.95
16.4836
13.1044
15.1321
7.7841
13.1769
4.2849
16.5649
16.81
20.9764
12.25
8.0656
144.6329
XY
18.1888
12.1632
16.6103
11.3274
13.1406
8.6526
6.38085
17.261
20.5642
10.78
11.1896
146.2586
Source: Researcher’s field survey Findings
r=N∑XY -∑X∑Y
√ [N∑X2 – (∑X)2] [N∑Y2-(∑Y)2]
11(146.26) - (41.24)(39.15)
√ [11(161.95) – (41.24)2][11(144.63) – (39.15)2]
=-0.083
Degree of freedom (N-2) =11-2=9, critical value @ r=0.05 the tabulated value=0.521
Since the result (r cal ) above shows a weak negative correlation co-efficient of -0.083
which is less than the tabulated ( tab ) of 0.521 at 5% degree of significance, we accept the
null hypothesis (H 0 ) and conclude that there is no significant correlation between
accounting information system and payroll information system.
Hypothesis 2
H 0: There is no difference in staff perspective about the effect of computerisation of
organisation operations and the achievement of it goals.
H 1 : There is difference in staff perspective about the effect of computerisation of
organisation operations and the achievement of it goals.
SCALE
S.A 5
A
4
U
3
D
2
S.D 1
A
0
4
0
0
0
4
B
3
2
1
0
0
6
C
8
23
2
2
2
37
D
9
22
2
0
2
35
E
0
0
1
0
1
2
TOTAL
20
51
6
2
5
84
NOTE:
A= Sample grouping consisting principal staff
B= Sample of grouping consisting the management staff
C= sample of grouping consisting senior staff
D= sample of grouping consisting general staff
E= Sample of grouping consisting other staff
H0: μ1= μ2= μ3= μ4= μ5
H 1 :H 0 is not true
Table 4.3.8.ANOVA ANALYSIS
∑χ
∑¯χ
∑χ2
A1
0
16
0
0
0
16
3
B1
15
8
3
0
0
26
5
C1
40
92
6
4
2
144
29
D1
45
88
6
0
2
141
28
E1
0
0
3
0
1
4
1
TOTAL
256
298
10120
9809
10
20493
3
8312
(∑χ)
51
135
4147
3976
Source: Researcher’s field survey Findings
2
Grand total =16+26+144+141+4=331
Grand Mean =331 =13.24
25
2
SS T =∑χ – (∑χ)2 ==20493- 3312= 16110.56
N
25
SS B =8312-3312 =3929.56
331
25
SS W = SS T -SS B =16110.56- 3929.56=12181
Degree of freedom;
Df B =k -1 =5 – 1=4
Df w =N –k=25-5=20
Total degree of freedom = N-1=25-1=20+4=df b +df w
MSS B =SS B =3929.56= 982.39
df B 4
MSS W =SS W =12181=609.05
df w 20
F = MSS B =982.39 =1.612
MSS W 609.05
Critical value @ a=0.05 F 4,20 = 2.87
and 4.43@0.01
Table4.3.9:Table of means and standard deviation.
1(n=5)
2(n=5)
3(n=5)
4(n=5)
5(n=5)
Mean
Standard
16
26
144
141
4
6.4
5.71
34.56
33.56
1.87
deviation
Source: Researcher’s field survey Findings
TABLE 4.4.0: ANOVA Results
Source
SS
Between
3929.56
Df
MSS
F
4
982.39
1.61
12181
20
609.05
16110.56
24
Samples
Within
Samples
Within Total
Source: Researcher’s field survey Findings
Since the calculate is less than the tabulated we do not reject the null hypothesis and we
conclude that the difference is not significant
Hypothesis 3
H 0 : The introduction of computer would not bring about automatic reduction in
workforce
H 1 : The introduction of computer would bring about automatic reduction in workforce
TABLE 4.4.1 Distribution of respondent on the use of computer can lead to staff
reduction in the organisation
RESPONSE
X
STRONGLYAGREE
AGREE
UNDECIDED
DISAGREE
STRONGLYDISAGREE
5
4
3
2
1
F
10
21
40
21
6
98
Source: Researcher’s field survey Findings
Mean X = ∑fx = 302
=3.08
∑F
98
Standard Deviation =√∑ F(X-¯X)2
=√105.3468
∑F
98
XF
(X-¯X)2
50
84
120
42
6
302
3.6864
0.8464
0.0064
1.1664
4.3264
F(X¯X)2
36.864
17.774
0.256
24.4744
25.9584
105.3468
=1.037
The respondent remain largely undecided on the use of computer may possibly reduce the
staff in an organisation. This is based on the fact that mean average calculated from the
table 4.4.1 clearly indicated an average of 3.08 and standard deviation of 1.037.The null
hypothesis is therefore accepted.
Hypothesis 4
H 0 : Application of modern computer packages- the Oracle financials and Paypers,
Peachtree, Sage, Deceasy would not bring a permanent solution to accounting and payroll
processing problems.
H 1 : Application of modern computer packages (the oracle financials and paypers,
Peachtree, sage, Daceasy) would bring a permanent solution to accounting and payroll
processing problems.
Using Chi-Square X2 = ∑[(O-E)2]
E
TABLE 4.4.2: OBSERVED FREQUENCY
STRONGLY
AGREE
A
0
B
0
C
2
D
1
E
1
TOTAL 4
AGREE UNDECIDED DISAGREE STRONGLY
DISAGREE
0
4
1
0
2
4
2
0
4
21
12
1
3
18
15
1
1
9
0
0
10
56
30
2
A= Sample grouping consisting principal staff
B= Sample of grouping consisting the management staff
C= sample of grouping consisting senior staff
D= sample of grouping consisting general staff
TOTAL
5
8
40
38
11
102
E= Sample of grouping consisting other staff.
The expected frequency is arrived using:
E= R T * C T
GT
R T = row total
C T = column total
G T = Grand total
TABLE 4.4.3:EXPECTED FREQUENCY
A
B
C
D
E
STRONGLY
AGREE
0.1961
0.3137
1.5686
1.4902
0.4314
AGREE UNDECIDED DISAGREE STRONGLY TOTAL
DISAGREE
0.4902
2.7451
1.4706
0.0980
0.7843
4.3922
2.3529
0.1569
3.9216
21.9608
11.7647
0.7843
3.7250
20.8627
11.1765
0.7451
1.0784
6.0392
3.2353
0.2157
TABLE 4.4.4: Chi-square(X2)
O
E
(O-E)
(O-E)2
(O-E)2/E
0
0
2
1
1
0
2
4
3
1
4
4
21
0.1961
0.3137
1.5686
1.4902
0.4314
0.4902
0.7843
3.9216
3.7250
1.0784
2.7451
4.3922
21.9608
-0.1961
-0.3137
0.4314
-0.4902
0.5686
-0.4902
1.2157
0.0784
-0.725
-0.0784
1.2549
-0.3922
-0.9608
0.0385
0.0984
0.1862
0.2403
0.3233
0.2403
1.4779
0.006147
0.5266
0.006147
1.5748
0.1538
0.9231
0.1963
0.3137
0.1187
0.1613
0.7494
0.4902
1.8844
0.0016
0.1414
0.0057
0.5737
0.0350
0.0420
18
9
1
2
12
15
0
0
0
1
1
0
20.8627
6.0392
1.4706
2.3529
11.7647
11.1765
3.2353
0.0980
0.1569
0.7843
0.7451
0.2157
-2.8627
2.9608
-0.4706
-0.3529
0.2353
3.8235
-3.2353
-0.0980
-0.1569
0.2157
0.2549
-0.2157
8.1951
8.7663
0.2215
0.1245
0.0554
14.6192
10.4672
0.009604
0.0246
0.04653
0.0650
0.0465
0.3928
1.4516
0.1506
0.0529
0.0047
1.3080
3.2353
0.098
0.1568
0.0593
0.0872
0.2156
11.9262
Source: Researcher’s field survey Findings
Df = (R T -1)(C T -1)
(5-1)(5-1)
4*4 =16
At ∞= 0.05 the tabulated value is 26..03.Since the calculated value of X2=11.9262 is
less than the tabulated value, we retained the Null Hypothesis and conclude that
Application of modern computer packages (the Oracle financials and Paypers, Peachtree,
Sage, Deceasy etc) would not bring a permanent solution to accounting and payroll
processing problems.
4.3.0: DISCUSSION OF FINDINGS
In order to determine the impact of automated accounting system on payroll preparation
in large organisation, four hypotheses were put forward and tested using Correlation Coefficient, mean average score, analysis of variance(ANOVA) and chi-square method were
used. The first hypothesis- correlation co-efficient was to determine the degree of
relationship between the payroll system (dependent variable) and automated accounting
system (independent variable). Since the result (r cal ) in table 4.3.7 above shows a weak
negative correlation co-efficient of -0.083 which is less than the tabulated (r tab ) of 0.521
at 5% degree of significance, we accept the null hypothesis (H 0 ) and conclude that there
is no significant correlation between accounting information system and payroll
information system. The data used in testing this hypothesis is based on comparism of the
average mean score of the questions on computerised accounting system with that of
payroll matters. The non-rejection of null hypothesis may be as a result of inclusion of
some variables such as money bringing conflict, wastage of resources through improper
time and attendance management.
Testing the second hypothesis was to determine the level of significance about the staff
perspective about the effect of computerisation of organisation operations and the
achievement of it goals. The Analysis of Variance was base on the responses of the
various categories of staff in various organisations on “computer is an effective tool of
communication and achieving the goals of the organisation. Responses were rated based
on the likert-scale structure of the questionnaire. Since the calculated is less than the
tabulated the null hypothesis null hypothesis was adopted and we conclude that the
difference is not significant .Non rejection of null hypothesis (Ho) was at 5% level of
significance.
On the analysis of respondents on “computer is an effective tool of communication and
achieving the goals of the organisation”. Respondent agree to the fact that computer
server as an effective tools of communication and achievement of organisational goals in
any organisation. This is based on the mean average of 3.94 and standard deviation of
0.53 calculated in the table 4.33 above.
Hypothesis three was tested based on mean score. The hypothesis is closely linked with
responses of table 4.3.2. The respondents remain largely undecided on the fact that, the
use of computer may possibly reduce the staff in an organisation. This is based on the
fact that mean average calculated from the table 4.4.1 clearly indicated an average of 3.08
and standard deviation of 1.037.The Null Hypothesis was therefore accepted
that
computerisation will not lead to automatic reduction in work force.
Hypothesis four was tested using chi-square (goodness of fit test) At ∞= 0.05 the
tabulated value is 26..03.Since the calculated value of X2=11.9262 is less than the
tabulated value, we retained the Null Hypothesis and conclude that Application of
modern computer packages (the Oracle financials and Paypers, Peachtree, Sage, Deceasy,
Excel etc) would not bring a permanent solution to accounting and payroll processing
problems. This hypothesis is closely related to responses analysed in Table 3.2.6. From
the calculated mean in the table, the majority of respondents disagree with the fact that
modern computer packages will bring permanent solution to payroll and accounting
processing problems. This is based on the fact that the mean score is 2.84 with a standard
deviation of 0.743.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1
SUMMARY
Whether to computerise or not is essentially a question of weighting up the benefits
against the costs. This is easier said than done. The benefits of computerizing the
accounts may be difficult to identify let alone quantify. This is especially so if the
business had no experience of computers and hence little idea of what to expect. It is true
that computerization may lead to more efficient stock control and credit control and that
this may improve considerably the cash flow of the business if stock levels can be
optimized, cash collected more efficiently from customers and bad debts minimized. Also
better quality information systems may make management more efficient and productive.
Nevertheless, it is sometimes easy to enthusiastically overestimate the benefits from
computerisation especially in the short term.
Calculating the costs at first sight seems easier to do but even here is easy to
underestimate the total costs. Hardware costs and software costs may be relatively easy to
quantify. It is however easy to overlook additional costs such as insurance and training.
Maintenance agreements can be expensive but are essential as are subscriptions to
software support schemes. The cost of consumables such as printer ribbons, floppy disks,
cables and paper should not be overlooked. (Contrary to popular belief a computerized
accounting system will usually use at least as much paper as a manual system). There will
also be the costs of installation, for example electrical wiring, special furniture and so on.
The general objective of the study is to determine the effectiveness or otherwise of a
computerised accounting system and its relevance in the processing and provision of the
necessary information for the diverse needs of the users in an organisation especially on
the issue of payroll preparation. The study takes into consideration the background of
office automation, the computer and accounting system. Historical background of
computer, various components of computer system-both hardware and software. The
study highlighted the accounting system vis-vis payroll system. The study identifies 5
types of general purpose accounting packages depending on the cost, size of the firm and
suitability. The study also gives step by step answer to what it really means to do payroll
and accounting for payroll.
The major source of data for this study is the primary data that was collected through the
use of questionnaires administered to various selected firms in Ota and Lagos. The
sampling technique adopted adopted was random sampling. The data were classified into
various research questions were analysed using average mean score and standard
deviation. While the four Hypotheses to determine impact of automated accounting
system on payroll preparation were tested using Karl Pearson Product Moment
Correlation Coefficient, Analysis Of Variance(ANOVA), mean average score and the
statistical test of significance(chi-square).
Using Karl Pearson Product Moment Correlation Coefficient the first null hypothesis was
accepted and we conclude that there is no significant correlation between accounting
information system and payroll information system. The second hypothesis, ANOVA (Ftest) was used and the result leads to the adoption of null hypothesis and we conclude
that the difference is not significant. This was to determine difference in staff perception
about the effect of computerisation of organisation operations and the achievement of it
goals. Using the mean average, the third hypothesis was tested using average mean score
in which the majority of respondents remain undecided as to whether the computerisation
of accounting system would bring automatic reduction in labour force. Using the
goodness of fit test (chi-square), in the fourth hypothesis null hypothesis was retained.
The majority of respondents disagree with the fact that modern computer packages will
bring permanent solution to payroll and accounting processing problems.
Finally majority of the respondents agree to the fact payroll function interface with the
accounting system and recognised the fact that job fatigue , wastage of resources are
reduced when an organisation if organisation is computerised.
5.2 CONCLUSION
Payroll unit plays a very important role in the administration of every organisation.
Attention to labour matters on remunerations; issue relating to government and the need
to interact effectively with the overall accounting system are the most crucial ones.
Modern payroll preparation in large organizations requires the use of electronic device
such as computers to cope with these challenges.
A TAM solution will reduce the costs and errors associated with the collection.
submission, approval and administration process; this will greatly reduce inaccuracies
caused by human error, payroll preparation time, management of labour costs and time
misappropriate due to lunches, breaks, late arrivals and early departure.
The study reveals the fact payroll is an integral part of accounting activities No doubt,
this allows the benefits associated with automation to be exploited to its fullest. It had
really assisted many organisations in the areas of communication and or reporting.
Management benefits by receiving more accurate, up-to-date information, from which it
can forecast, plan and control.
Deadlines on issues relating to the labour management (e.g. payment of wages, salaries,
allowances, size of staff etc.) and other Government issues (e.g. tax matter, NSIFF,
Development levies, other statutory deductions) become administratively and
operationally effective due to benefits derived in automation.
The study highlight the full benefits expected of the modern computer packages in
processing financial transactions and solving payroll problems .Although doubt where
raised as to whether the use of modern computer packages could solve all payroll
processing problems.
We conclude that:
•
Despite the above observations, the flexibility in operation of Automated
Accounting system in these reduces Preparation of payroll to simple task and
thus makes a very unique financial system for a large organisation.
•
The reviewing of stages in process of computerisation is an exercise that
should be designed to check possible errors, fraud and other possible
inconsistencies that might affect the quality of payroll preparation, both for
Regular staff, Casual Labour, Attaches, Corpers etc.
•
The use of Computer is not a substitute for a sound Internal Control, good
Administration and Rational thinking by the operators because of the usual
computer popular syndrome… Garbage in Garbage out ‘’ GIGO”.
•
Computerisation will not lead to automatic reduction in work force in the
organistion.Fears and doubt of employees should be allayed about
introduction of automated system.
•
Introduction of modern computer packages will not bring a permanent
solution to payroll and accounting processing problems because of the human
factors involved and people outsmarting the system.
5.3
RECOMMENDATION
Based on the findings and background information obtained during the course of this
study into the impact of automated accounting system on payroll preparation. The
following recommendation in order that organisation can improve their computerisation
effectiveness on the transactions processing in general and payroll processing in
particular:
(I)
There is need to adopt implementing a complete best of breed time attendance
solution. A complete time and attendance management (TAM) solution must
include most or all of these features to maximize return on investment: Timesheet,
View Shift Management, Exception Reporting, Approval, Pre-fill Holidays, Work
Hour Thresholds, Request Processing, Overtime Policy system, Labour
Management. Compliance for Various Government Regulations,
Email
Notifications. Adjustments Entries. Note Entries. Status Indicators. Mass Update,
Access to data, Site and Scooping, R&D (research and development) tracking and
claim management, business intelligence analysis, document attachment, tree
format, suspend/decommission, adopt default terminology, software development
kit (SDK), import and export, general ledger link and audit trails.
ii)
Everything possible must be done to alley fears of the staff concerning the effect
of computerisation. To this end it essential that there should
be timely
communication of what is intended to do and to what extent the existing staff will
be affected. If they can be assured that there will be redundancy, and reduction of
staff will take place gradually, i.e. by non-replacement of employees leaving or
retiring. The old staff could also be trained on the use of the new system either
through on the job, seminars, on sending them to special training school in order
to fit into the new system .On the part of the organisation the cost of hiring new
staff to run the system may excessively high.
iii)
Computerisation of accounting system should be an ongoing thing especially in
the area of payroll preparation so that old system (manual) could be used along
with new system in case of system failure.
(iv)
Furthermore before purchase of accountancy software, packages should be carefully
evaluated to ensure that it could offer the facilities required by the business. For
example, there is clearly little point purchasing a package that can only administer a
maximum of 1,000 customer accounts, if the business has 2,400 credit customers! On
the other hand, it would be quite wasteful of resources to purchase a package with
powerful and sophisticated sales ledger routines if the business sells only on a cash
basis – a cheaper without a sales ledger would possibly be sufficient.
(v)
Security of Corporate Information
While it is generally accepted that computerization impacts positively on the
bottom-line of corporate entities, organization cannot afford to loose sight of its
inherent problems particularly in terms of security of corporate information and
the occurrence of fraudulent practices. That hacking of computer data is today
frequent gives credence to the need to strive to evolve strategies that will ensure
the security of information and information systems.Organisation should make
sure that security of data especially those that relate to payroll matters are
securely kept. Adequate and effective internal control system should be in place
in order to minimize incidences of errors, frauds, manipulation of records and loss
of data.
vi)
Finally, in the choice of any accounting processing system and payroll packages,
organization should weigh the costs (both tangibles and intangibles) and the
benefits associated with it. What works for Firm A, may not work for Firm
B.Firms are strongly advised to considered the peculiarity, size, nature and
purpose to which acquisition of modern automated system can be put to use.
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Harrap (1992) Dictionary of business and Finance, Clark Robinson Limited,
Edinburgh
Pritchard J .A .T and Wilson P.A (1982).Planning Office Automation, NCC
Publications, Manchester.
http://www.americanpayroll.org/comm
http://www.youronlineaccountants.co.uk
http://www.FullPayrollServices.co.uk
http://www.FullPayrollServices.co.uk
APPENDIX-A
DEPARTMENT OF ACCOUNTING
COLLEGE OF BUSINESS AND SOCIAL SCIENCES
COVENANT UNIVERSITY
OTA, OGUN STATE, NIGERIA
QUESTIONNAIRE
This questionnaire is designed to assist the researcher in studying the ‘Impact of
automated accounting system on payroll preparation in large organizations’.
Your co-operation in answering the questions designed to achieve this objective will be
highly appreciated and treated confidentially.
Thank you.
SECTION A
PERSONAL DATA:
Tick were necessary
1.
Sex
(a) Male ( ) b.Female ( )
2.
Age (a) 15-25 years
( )
(b) 26-35 years
( )
(c) 36-45 years
( )
(d) 46 and above
( )
3. Marital Status (a) Single ( ) (b) Married ( )
(c) Divorced ( ) (d) Widow ( )
4. Religion
(a) Christianity ( ) (b) Muslim ( ) (C) Others ( )
5. Qualification: (a) WASC/GCE/NECO ( )
(b) NCE/OND
( )
(C) B.Sc/HND
( )
(d) M.Sc/MBA/P.hD/PROFESSIONAL ( )
6. Designation/Cadre (a) Principal Staff
( )
(b) Management staff ( )
(c ) Senior Staff
( )
(d ) General Staff
( )
(e) 0thers
( )
SECTION B:
Using the following scale:
SA = Strongly Agreed
D = Disagree SD = Strongly Disagree
UD= Undecided
A = Agreed
Tick the option that best suit your opinion in the question items below:
COMPUTERISED ACCOUNTING:
S A
A
1. The use of computer is a necessity in large organization
2. Adequate information brings about harmony in the work
environment.
3. The use of computer reduces wastages in your organization
4. New technology has helped in dissemination of information in
your work environment
5. Productivity is high in computerized and peaceful work
environment
6. Disharmony leads to achievement of organizational goals
7. Good communication is the life wire of every organization
8. Hoarding of information affects smooth running of
organization
9. Automation of accounting activities reduces fatigue.
U D S
D
D
10. The use of computer can lead to staff reduction in the
organization
11. Computer is an effective toll of communication and achieving
the goals of the organization.
PAYROLL MATTERS:
SA A U
D
SD
1. Industrial peace is possible through adequate
information and prompt payment of salaries and wages
2. Money bring about conflict in work organization
3. Late payment of salaries and wages could lead to low
productivity
4. Prompt payment of salaries and wages is a vital tool in
motivating workforce
5. Salaries and wages payment can be delayed if payroll
system is not computerize
6. Labour can be annoyed for receiving incorrect wages
and salaries
7. Payroll preparation is an integral part of accounting
activities through which management pays attention to
labor matters
8. Resources of organization are wasted through improper
time and attendance management
9. Payroll preparation can be complex and be better
handled by the use of computer
10. Application of modern computer packages would bring
permanent solution to payroll preparation problems.
11. Computer can handle almost all areas of accounting
SECTION C:
1. What types of accounting system exist in your organization?
(a) Computerized{ }
(b) Manual
{ }
2. How often does payroll function interface with the accounting system in place in
your organization?
a. Always { }
b. Sometimes { }
3. What do you think has been responsible for the successful interface between the
accounting functions in general and payroll function in particular?
…………………………………………………………………………………………
…………………………………………………………………………………………
……
4. Has the accounting package(s) introduced into your organization financial system
fully addressed the information-processing problem envisaged before it was
introduced? Yes ( ) No ( )
If NO, what other areas would you like the new system to address?
…………………………………………………………………………………………
…………………………………………………………………………………………
……
5 what is your opinion about the software purchased and used in handling personnel
and payroll matters?
…………………………………………………………………………………………
…………………………………………………………………………………………
……
6
What do you think would happen in the areas of reporting and information
dissemination if the activities in a large organization like yours is not computerized?
…………………………………………………………………………………………
…………………………………………………………………………………………
…
7 Would there be a difference if the payroll system is not computerized vis a vis the
preparation
of
remuneration
and
payment
to
statutory
authorities………………………………………………………………………………
………………………………………………………………
APPENDIX- B LIST OF MAJOR FIRMS USED
1.
2.
3.
COVENANT UNIVERSITY, OTA
NATIONAL OTHORPEDIC HOSPITAL, IGBOBI, LAGOS
RESEARCH AND MARKEKING SERVICE LIMITED, LAGOS