Research Key

Efficiency of accounting software in the preparation of financial statement of commercial banks

Project Details

Department
Accounting
Project ID
ACC053
Price
5000XAF
International: $20
No of pages
55
Instruments/method
Quantitative
Reference
Yes
Analytical tool
Descripyive
Format
 MS Word & PDF
Chapters
1-5

The custom academic work that we provide is a powerful tool that will facilitate and boost your coursework, grades and examination results. Professionalism is at the core of our dealings with clients

Please read our terms of Use before purchasing the project

For more project materials and info!

Call us here
(+237) 654770619
Whatsapp
(+237) 654770619

OR

ABSTRACT


Efficient accounting software with a robust database is crucial to the preparation of financial statements. The software must be designed to handle large data sets and provide timely, accurate information. According to Alzoubi et al. (2018), the use of a database management system ensures data integrity and consistency, which is vital in generating reliable financial statements. This study was aimed at investigating the Efficiency of accounting software in the preparation of financial statement of commercial banks in Buea, case of CCA Bank Buea. the study was guided by three specific research objectives, which were; to examine the impact of efficiency of accounting software Database in the preparation of financial statement of CCA Bank, Buea, to determine the effect of efficiency of accounting software Security in the preparation of financial statement of CCA Bank, Buea and to investigate the extent to which efficiency of accounting software automation affect the preparation of financial statement of CCA Bank, Buea. Initial hypothesis were developed in line with the specific objectives. The study made use of Primary data, with the issuing of 30questionnaires to the staffs of CCA Bank, Buea. The data were analysed using descriptive statistics and ordinary least square was employed to test the hypothesis.
The study revealed that accounting software and its component have a significant impact on the preparation of the financial statements of CCA Bank, Buea. Thus, the study concluded that if banks like CCA Bank would ever aim to improve on the efficiency and quality of her financial statements, she ought to embrace key accounting software that are efficient in this, which include, accounting software database, accounting software automation and accounting software security measures. The study recommended that CCA Bank should invest in software with advanced database features that can handle the large volumes of financial data typically processed by commercial banks, and that security measures should be strengthened to prevent unauthorised access and ensure the integrity of financial information

CHAPTER ONE

INTRODUCTION

This study is out to investigate the efficiency of accounting software in the preparation of financial statement on commercial banks, Case of CCA Bank Buea. This chapter presents the background of the study, statement of the research problem, research questions, objective of the study, hypothesis, significance of the study, scope of the study and organization of the study.

1.1 Background of the study

Accounting software have been identified as computer programs used by organisations to manage financial data and create financial statements (Knechtel & Dayton, 1997). It allows businesses to keep accurate records of financial transactions, generate invoices, track inventory and manage accounts payable and receivable. According to Reichelstein and Slemrod (2017), accounting software has become an integral part of any successful business, especially in the digital age.

Efficient accounting software with a robust database is crucial to the preparation of financial statements. The software must be designed to handle large data sets and provide timely, accurate information. According to Alzoubi et al. (2018), the use of a database management system ensures data integrity and consistency, which is vital in generating reliable financial statements. In addition, efficient accounting software must have strong security features to protect sensitive financial information. As stated by Kieso et al. (2017), unauthorised access to financial data can result in fraudulent activities. Therefore, the software must be equipped with features such as password protection, access controls, and backup procedures. Moreover, automation is a critical factor in ensuring the efficiency of accounting software. Automation minimises errors and saves time in generating financial reports. According to Chhabra and Sharma (2018), automation allows for quicker execution of tasks, leading to a more efficient accounting system.

The introduction of accounting software revolutionised the way businesses perform accounting tasks, making them more efficient and accurate. Accounting software was first introduced in the late 1970s in the United States by companies such as Intuit and Peachtree, aimed at small and medium-sized businesses. Later on, more sophisticated systems were developed, such as Enterprise Resource Planning (ERP) systems, which integrated financial management with other organisational systems. The evolution of accounting software has been driven by advances in technology, increasing demand for more features and functionalities, and changing business needs (Akinyomi, 2018). Today, accounting software has become a critical tool in managing financial data across all industries.

In Africa, the adoption of accounting software has been slow, with many small and medium-sized businesses still using manual accounting methods. However, the market for accounting software is growing, and there is a rising demand for more sophisticated systems to accommodate the needs of larger businesses (Chylek, 2018). In Cameroon, accounting software has gradually gained popularity over the years, with a number of vendors offering various types of software to meet the needs of different industries. Commercial banks in Cameroon, for instance, use different types of accounting software, such as Sage and Oracle Financials, to manage their financial data and transactions. The efficiency of accounting software refers to its ability to accurately and quickly record financial transactions, generate financial reports, and assist in the preparation of financial statements as stated by Dantas and Mergulhão (2019).

In commercial banks, accounting software is used for various purposes such as tracking deposits and withdrawals, analysing loan portfolios, managing customer accounts, and producing financial statements. The software is also used to monitor and ensure compliance with industry regulations, provide data for audits. In commercial banks, accounting software is used to manage transactions including deposits, withdrawals, and loans. Additionally, it can track customer accounts, reconcile bank statements, and generate financial reports required by regulatory agencies.

The use of accounting software in commercial banks is directly related to the preparation of financial statements. The accuracy and reliability of financial statements depend on the quality of the accounting system, which includes the software utilized. With advanced software, financial statements can be generated more efficiently, reduce the possibility of human error, and provide more detailed analysis of financial data. According to research conducted by Patel and Patel (2018), efficient accounting software can positively impact the financial performance and productivity of commercial banks.

Financial statements on the other hand are documents that communicate financial information about a business or organisation to its stakeholders. They typically include a balance sheet, income statement, and cash flow statement. Financial statements are very relevant to banks as they use them to analyse the creditworthiness of borrowers and make decisions about whether to lend to them or not. Banks also use financial statements to monitor the financial health of their own organisation and to make strategic decisions about future operations (Old Dominion University, 2019).

The concept of financial statements has evolved over time to meet the changing needs of businesses and stakeholders. Today, financial statements must adhere to strict accounting standards and be prepared using generally accepted accounting principles (GAAP) or international financial reporting standards (IFRS). They may also include additional information such as management commentary and notes to the financial statements.

According to Chongwain et al. (2020), the adoption of financial statements by commercial banks in Cameroon was mandated by the Central Bank of Cameroon in 2009. Commercial banks in Cameroon are required to prepare four types of financial statements: income statement, balance sheet, cash flow statement, and statement of changes in equity (Nada and Razak, 2018). Commercial banks in Cameroon prepare their financial statements in accordance with the International Financial Reporting Standards (IFRS) and other relevant regulations set by the Central Bank of Cameroon (Ngwen, 2019). These financial statements are prepared based on historical accounting principles of recording transactions, which requires the use of double-entry bookkeeping to ensure that all transactions are recorded accurately and completely (Nada and Razak, 2018).

This study is based on the foundation of several theories. Such theories include; the Double-Entry traditional model of Accounting postulated by Luca Pacioli in the year 1494. The main idea of this theory is that every transaction has two aspects – a debit and a credit. Another of such theories include the Single-Entry Accounting System that is based on the recording of only one aspect of each financial transaction, either a debit or a credit. Unlike double-entry accounting, which requires two corresponding entries, single-entry accounting only requires one entry which is recorded in a simple list format. Another of such theories is the Enterprise Resource Planning (ERP) Software Model that was designed to integrate all the different departments within an organization, including finance and accounting. It was developed in the 1990s and is now widely used in industries such as manufacturing, distribution, and retail. And lastly the Cloud-Based Accounting Software Model that allowed users to access the accounting system through a web browser or mobile app, eliminating the need for expensive on-premise hardware and software.

The concept of financial statement preparation is heavily dependent on accounting software, as it enables commercial banks to automate the accounting process and reduce errors that may result from manual entry. The software also allows for the compilation of financial statements in a timely and accurate manner, thus enabling banks to make informed decisions based on the information contained in the financial statements (Ngwen, 2019).  Based on this background, this study is out to investigate the impact of efficient accounting software on the preparation of commercial banks, case of CCA Bank.

1.2 statement of the problem

Translate »
Scroll to Top