Home Accounting Project Topics CHALLENGES OF ELECTRONIC ACCOUNTING” TOOLS FOR MACRO-ECONOMIC GROWTH IN NIGERIA: A CASE...

CHALLENGES OF ELECTRONIC ACCOUNTING” TOOLS FOR MACRO-ECONOMIC GROWTH IN NIGERIA: A CASE STUDY OF SELECTED BANKS

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ABSTRACT

 

Electronic Accounting or E-Accounting as it is popularly called is
one of the areas that technology has affected. Previously, financial
accounting was done manually leading to a great deal of paper work
until the introduction computers which now helped accounting
information in a wide area. E-Accounting involves performing
regular accounting functions, accounting research and the
accounting training and education through computer based, internet
based, accounting tools such as digital tool kits, various internet
resources, international web-based materials, institute and company
data bases, web links, electronic financial spreadsheet tools to
provide efficient decision making. Challenges of electronic
Accounting bothers the mind of the people, on this work, reasons for
ineffective use of electronic accounting has been discovered and
solutions have been recommended. Such solutions likes providing
standard electronic accounting with modern software by government
for all public sector accountants, regular training of accounting staff
on the various software and terminologies, organizing workshop,
seminars and conferences by government for accountants in public
sector on electronic accounting since the world is facing
technological development globally and many other solutions
suggested in this work.

 

TABLE OF CONTENTS

 

Title Page i
Declaration ii
Approval iii
Dedication iv
Acknowledgements v
Abstract vi
Table of Contents vi
List of Tables xii
List of Figures xiii
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study 1
1.2 Statement of the Problem 4
1.3 Objectives of the Study 7
1.4 Research Questions 7
1.5 Research Hypotheses 8
1.6 Significance of the Study 8
1.7 Limitation of the Study 9
References 11
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CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1 Evolution of Money and Payment System 12
2.2 Preliminary Definition of Concept 14
2.3 Information and Communication Technology Based Services
in Nigeria 16
2.4 E-Accounting Practices among Small and Medium
Enterprises 19
2.5 E-accounting and Reporting: An Information Technology
(IT) Perspective of Corporate Reporting in the Digital Age 23
2.5.1 E-Accounting and Accounting Softwares 25
2.5.2 Benefits of Using E-accounting in an Organization 26
2.5.3 Web-Based Accounting 27
2.5.4 Categories of Web-based Accounting 27
2.6 Empirical Review 30
References 36
CHAPTER THREE: RESEARCH DESIGNS AND
METHODOLOGY
3.1 Research Design 38
3.2 Population of Study 38
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3.3 Sample Size and Sampling Techniques 40
3.4 Sources of Data 41
3.5 Instrument for Data Collection 42
3.6 Methods of Data Analysis 42
3.7 Validation of the Instrument 43
References 45
CHAPTER FOUR: DATA ANALYSIS AND PRESENTATION
4.1 Introduction 46
4.2 Analysis of Respondents of Biodata 46
4.3 Data Presentations 48
4.4 Test of Hypotheses 53
4.4.1 Hypotheses One 53
4.4.2 Hypotheses Two 55
4.4.3 Hypotheses Three 56
4.5 Discussion of Findings 58
CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION
AND RECOMMENDATIONS
5.1 Summary of Findings 60
5.2 Conclusion 61
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5.3 Recommendations 61
Bibliography 63
Appendix 66
Questionnaire

 

CHAPTER ONE

INTRODUCTION
1.1 Background of the Study
Some years ago, most financial accounting was done manually,
leading to a great deal of paperwork. Currently, most accounting
information is recorded via computers and wide area networks.
Technology has certainly changed the face of accounting over the
years. While people have diverse views as to whether technology’s
impact on accounting has positive or negative, it is clear that
technology has drastically changed the accounting profession
(Adejola, 2015).
There are no questions that the role of information technology (IT) is
pervasive across the economy; it is a central issue that dominates
short, medium and long-term strategic discussions across all
businesses. The best businesses have their technology vadars
consistently switched on, scouring and weighing new and up coming
technologies that can achieve competitive value.
The pace and nature of change in the environment has had a
profound influence on business organizations and the way in which
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they are managed. Some authors in management theory even suggest
that a paradigm shift has taken place in the way in which companies
are managed. Accounting, as the language of business, and its
accounting information system, as a subsystem of the business
organization has also been affected by these changes (Adejola,
2015).
According to Johnson (2005), the most significant development of
the millennium which has substantially influenced business
operations in the world is the emergence of the information age. The
remarkable progress achieved in Information and Communications
Technology (ICT) has made it possible for information to be
digitalized and transmitted faster and cheaper in mega or terabytes.
Accounting plays a critical role in the success or failure of
contemporary business institutions. Accounting systems are
responsible for recording, analyzing, monitoring and evaluating the
financial condition of companies, preparation of documents
necessary for tax purposes, providing information support to many
other organizational functions and so on (Effah and Abor, 2011).
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E-accounting refers to Electronic Accounting, a term used to
describe an accounting system that relies on computer technology
for capturing and processing financial data in organizations Effiah
and Abor (2011).
According to Shraddha (2014) a computerized accounting system is
able to handle financial data efficiently, but the true value of an
accounting system was that it was able to generate immediate reports
regarding the company.
E-accounting involves performing regular accounting functions,
accounting research and the accounting training and education
through various computer based/internet based accounting tools such
as digital tool kits, various internet resources, international webbased
materials, institute and company data bases which are internet
based, web links, internet based accounting software and electronic
financial spreadsheet tools to provide efficient decision making
(Shraddha, 2014).
Online accounting through a web application is typically based on a
simple monthly charge and zero-administration approach to help
businesses concentrate on core activities and avoid the hidden coats
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associated with traditional accounting software such as installation,
upgrades, exchanging data files, backing and disaster recovery.
1.2 Statement of the Problem
According to Amidu, Effiah and Abor (2011) Accounting was one of
the first functional areas to benefit from computerization when
computers were initially introduced to organizations (Doost 1999).
Furthermore, Tavakilian (1995) noted that an accounting package is
usually one of the first major computer packages that a company
purchases and it is one of the two business applications often used,
with word processing being the other. It should not be a surprise
because accounting plays a very significant role in the performance
of organizations.
According to Stefanou (2006) the primary purpose of an accounting
information system (AIS) is the collection and recording of data and
information regarding events that have an economic impact on
organizations and the maintenance, processing and communication
of such information to internal and external stakeholders. The
information is used for the evaluation of the financial position of the
organization and for decision-making purposes.
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However, low understanding still persist among Nigerians as some
accountants are yet to understand the details of the electronic
accounting nor appreciate the importance of computerized
accounting information systems Onyiah (2013).
According to Onyiah (2013), business transactions are carried out in
Nigeria on near zero trust levels occasioned by weak social
structures and enforceable laws regulating business relationships.
Also with a large population that is barely literate and an economy
lacking social structures to support such electronic accounting policy
at this point in time, demeans the move even with the best of
intention.
With the advent of information and communication technology
based accounting, it is believed that the following will be easily
facilitated in an organization: project monitoring and variance
analysis, budget and forecast, provision of detailed expenditure
information to aid the management in cost control and decisionmaking,
ascertainment with accuracy the revenue generated in an
organization by just pressing/ touching a button. (Adejola, 2015)
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However, low understanding still persist among Nigerians as some
accountants are yet to understand the details of electronic accounting
nor appreciate the importance of computerized accounting
information systems (Onyiah, 2013). Business transactions are
carried out in Nigeria on near zero trust levels occasioned by weak
social structures and enforceable laws regulating business
relationships. Also, with a large population that is barely literate and
an economy lacking basic structures to support such electronic
accounting policy at this time, demeans the move even with the best
of intention (Onyiah, 2013).
Continuing with the current accounting practices in Nigeria, the
achievement of the goals of electronic accounting will be
undermined. Need therefore arises that accounting profession do
upgrade its practices and skills to reflect where the world is going,
not where it has been. Advances in technology will also demand new
skills and competencies from accountants and finance professionals.
(Adejola, 2015). This paper seek to explore the use of technology to
add value in accounting, enhance data analysis and interpretation of
skills for meeting changing business needs.
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1.3 Objectives of the Study
The main objective of this paper is to analyze the challenges of
electronic accounting as a tool for macro economic growth in
Nigeria. The specific objectives are:
i. To determine the perceived electronic accounting
information security threats in Nigeria
ii. To determine the state of the art of E-accounting systems
used among banks in Nigeria.
iii. To ascertain the effect of electronic accounting information
systems on government accounting operations in Nigeria
with a view to finding whether government accounting are
performed manually or has been computerized.
1.4 Research Questions
This paper seek to provide answers to the following questions:
1. What are those perceived electronic accounting information
security threats in Nigeria?
2. To what extent has the state of the art of e-accounting systems
used among banks in Nigeria, been improved?
3. What are the effects of electronic accounting information
systems on government accounting in Nigeria?
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1.5 Research Hypotheses
1. There is no significant perceived electronic accounting
information security threats in Nigeria
2. There is no significant improvement in the state of the art of
electronic accounting systems used among banks in Nigeria.
3. There is no significant impact of electronic accounting
information systems on government accounting in Nigeria.
1.6 Significance of the Study
This paper is timely in the sense that electronic accounting is still an
issue yet to be fully tackled. International Accounting Standard
(lAS) may also use these as a basis for setting guide and standards.
The result of this study maybe useful to auditing firms when trying
to consider the technological needs to improve the skill of their
students in accounting.
This work can also serve researchers need when trying to research
more on the challenges of electronic accounting in Nigeria. The
paper also provide guidance for the improvement of institutional
arrangement and management practices for better resource
allocation, resource use and financial management.
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1.7 Limitation of the Study
This research into the challenges of electronic accounting covers a
reasonable number of accounts and audit department in Enugu State.
It will also consist of accountants in the accounting unit of First City
Monument Bank (FCMB) Enugu branches, Enugu State Ministry of
Finance, Office of the Accountant General and Board of Internal
Revenue, Enugu State. The efficiency of accounting practice and the
factors that affect the use of (ICT) Information and Communication
Technology covers a wide aspect.
To fully understand electronic accounting, one has to study the
history of accounting profession, fundamentals of accounting, webbased
accounting, and information and communication technology.
In this paper, attempt has been made to present a comprehensive
appraisal of challenges of electronic accounting in Nigeria. The
exercise is constrained by the lack of detailed official (published)
economic data.
Ranging from profession, statutory and a host of several factors but
this work is restricted to cover the challenges of electronic
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accounting. The level of ICT investment by firms obtained will help
our result to be generalized and practiced.
Distance was one constraint that affected the researcher. Despite this
challenge, the researcher was able to overcome them through
persistent efforts.
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REFERENCES
Adejola, P.A (2011), E-payment: An Information Communication
Technology Dimension of a Cashless Society: A Quantity
Journal of Association of National Accountants of Nigerian;
19(14).
Amidu, M, Effah, J. and Abor, J (2011) E-Accounting practices
among small and medium Enterprises in Ghana. A Publication
of Journal of Management Policy and Practice; 12(4).
Johnson, E (2005), Overview of Electronic Payment System,
Strategies and Technical Issues: A Publication of Central Bank
of Nigeria; 29(2).
Onyiah, I.A (2013), Challenges of a Cashless Society Implication for
a Developing Economy like Nigeria. A Seminar Paper
Presented to Accounting Department, Nnamdi Azikwe
University Akwa.
Shraddha, V (2014), E-Accounting Problems and Prospects: A
Publication of Memorial Trust Group of Institutions Luck
Now.
Stefanou, C (2006), The Complexity and the Research Area of AIS,
Journal of Enterprise Information Management. 19(1):9-12.

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