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ASSESSING THE EFFECT OF USING COMPUTERIZED ACCOUNTING

SYSTEMS ON ORGANIZATIONAL PERFORMANCE IN ZAMBIA

By

Elizabeth Smith

(002-928)

A Dissertation Report Submitted In Partial Fulfilment Of The Requirements For The

Award Of A Bachelor Of Accountancy Of The Cavendish University Zambia.

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DECLARATION

I, Elizabeth smith hereby declare that this dissertation is my own work and that it has not

been submitted for any degree or programme in any other university and that all the sources I

have used or quoted have been indicated and acknowledged by complete references.

Signature____________________

Date________________________

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ACKNOWLEDGMENTS

Firstly, I would like to express my gratitude to Almighty God for the wellness, and support in

of this research. My gratitude goes to my supervisor, Mr Cifwala Hikacila for support,

professional advices, and guidance throughout my research, I truly appreciate.

To my mother, my Sisters, brother, brother in law (Mr. Kalunga) and my Partner (Mr Alex

Chota) thank you my family for your prayers, encouragement and support both financial and

material support, for being there and never giving up on me, I can never stress this enough.

My dear classmates and fellow graduates I thank you for your support and motivation.

My special thanks go to employees of Finance department, Auditing and human resources of

staff in LGAs for their cooperation and their participation as respondents of my study.

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DEDICATION

This work is dedicated to all academicians, policy makers and other stakeholders in the

academic world. I also dedicate this work to my lovely family.

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LIST OF ABBREVIATIONS AND ACRONYMS

AIS Accounting Information Systems

CAS Computerized Accounting System

CEO Chief Executive Officer

DCs Developed Countries

ERP Enterprise Resource Planning

FMIS Financial Management Information System

GAAP General Accepted Accounting Principle

ICT Information Computer Technology

IT Information Technology

LGAs Local Government Authorities

RBV Theory or resource-based view

SMEs Small and Medium Enterprises

NGO Non Government Organisation

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ABSTRACT

Information communications technology on computerized accounting systems was intended

to be effectively utilized in local governments to bring impact on accounting and

organizational performance in LGA`s. This study aimed at assessing the impact of

computerized accounting system usage on organization performance in

Zambia with special focus in local government authorities (LGA`s) Lusaka province. The

study used mainly primary data from 30 respondents selected using purposive sampling

techniques. This study employed descriptive analysis.

All respondents surveyed in the LGAs use Computerized Accounting System. It was found

that about 43% reported that computerized accounting system requires training to staff which

is a challenge, the reason might be due to lack of time to undertake training and the costs that

come with the training . About 27% indicated that computerized accounting system caused

loss of data, 20% are challenged the additional costs, and about 10% reported that it resulted

into wrong data entry. The Researcher asked if there are any measures taken to solve these

challenges. The results indicated, about 62% of respondent reported that the organization is

taking measures to overcome these challenges. About 82% claim that simplification of CAS

will improve organization performance.

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Table of Contents

DECLARATION ..................................................................................................................................... 2

ACKNOWLEDGMENTS ......................................................................................................................... 3

DEDICATION ........................................................................................................................................ 4

LIST OF ABBREVIATIONS AND ACRONYMS ......................................................................................... 5

ABSTRACT ........................................................................................................................................... 6

Table of Contents ................................................................................................................................ 7

LIST OF TABLES .................................................................................................................................. 10

LIST OF FIGURES ................................................................................................................................ 11

1.0 Chapter One: Introduction ....................................................................................................... 12

1.1 Background ........................................................................................................................... 12

1.2 Problem Statement ............................................................................................................... 14

1.3 Research Purpose ................................................................................................................. 15

1.4 Rationale of the study ........................................................................................................... 15

1.5 Objectives of the study ......................................................................................................... 15

1.5.1 General objective of study ............................................................................................ 15

1.5.2 Specific Objectives of study .......................................................................................... 15

1.6 Research questions ............................................................................................................... 15

1.7 Scope of the Study ................................................................................................................ 16

1.8 Significance of the study ....................................................................................................... 16

1.9 Organization of the Work ..................................................................................................... 16

1.9.1 Chapter one .................................................................................................................. 16

1.9.2 Chapter two .................................................................................................................. 16

1.9.3 Chapter three ................................................................................................................ 16

2.0 Chapter Two: Literature Review ............................................................................................... 17

2.1 Overview of literature .......................................................................................................... 17

2.2 Theoretical Literature Review .............................................................................................. 18

2.2.1 Systems Theory ............................................................................................................. 18

2.2.2 Computerised accounting ............................................................................................. 19

2.2.3 Resource-Based View Theory ....................................................................................... 19

2.2.4 Positive Accounting Theory .......................................................................................... 20

2.3 Accounting ............................................................................................................................ 20

2.3.1 Definition of Accounting Concept ................................................................................ 20

2.3.2 Role/Functions of Accounting ...................................................................................... 21

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2.4 Accounting Systems .............................................................................................................. 22

2.4.1 Manual Accounting Systems ......................................................................................... 22

2.4.2 Computerized Accounting Systems .............................................................................. 25

2.5 Empirical studies on Computerized Accounting System ...................................................... 27

2.5.1 Adoption of computerised accounting ......................................................................... 27

2.5.2 Other Factors that Determine the Adoption of CAS in LGAs ........................................ 29

2.5.3 Impact of CAS in LGAs ................................................................................................... 30

2.6 Determinants of Quality Financial Reports on Organizational Performance ....................... 31

2.6.1 Computerized Accounting Systems .............................................................................. 31

2.6.2 Computerized Accounting System Security .................................................................. 31

2.6.3 Transparency ................................................................................................................ 31

2.6.4 Leadership ..................................................................................................................... 32

2.7 AIS and Business Performance ............................................................................................. 32

2.8 Literature review underpinning study .................................................................................. 32

2.9 Conceptual Framework......................................................................................................... 34

2.10 Hypothesis ............................................................................................................................ 34

3.0 Methodology and design .......................................................................................................... 35

3.1 Research Approach ............................................................................................................... 35

3.2 Research Design .................................................................................................................... 35

3.3 Research Strategy ................................................................................................................. 35

3.4 Sampling frame ..................................................................................................................... 35

3.5 Sample size and sampling techniques .................................................................................. 36

3.5.1 Sample Size ................................................................................................................... 36

3.5.2 Sample Techniques ....................................................................................................... 36

3.6 Operationalization of Research Variables. ........................................................................... 36

3.7 Data collection techniques ................................................................................................... 36

3.8 Data analysis methods .......................................................................................................... 37

3.9 Data Validity and Reliability .................................................................................................. 37

3.10 Ethical Considerations. ......................................................................................................... 37

4.0 DATA ANALYSIS AND PRESENTATION ....................................................................................... 38

4.1 Overview ............................................................................................................................... 38

4.1.1 SECTION A: BACKGROUND OF RESPONDENTS ............................................................. 39

4.1.2 Results Study ................................................................................................................. 44

5.0 Discussion and Interpretation of findings ................................................................................ 50

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6.0 Conclusions and Recommendations ......................................................................................... 53

6.1 Introduction .......................................................................................................................... 53

6.2 Conclusion ............................................................................................................................. 53

6.3 Implication ............................................................................................................................ 54

6.4 Recommendations ................................................................................................................ 54

6.5 Limitation of the study.......................................................................................................... 55

6.6 Suggestions for further study ............................................................................................... 55

7.0 REFERENCES .............................................................................................................................. 56

APPENDICES ...................................................................................................................................... 65

Appendix I ......................................................................................................................................... 65

Appendix II ........................................................................................................................................ 70

Appendix II ........................................................................................................................................ 71

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LIST OF TABLES

Table 4. 1: Responsive Rate ..................................................................................................... 38

Table 4. 2: Gender of respondents ........................................................................................... 39

Table 4. 3: Marital Status ......................................................................................................... 40

Table 4. 4: Age of Responders ................................................................................................. 41

Table 4. 5: Academic Qualification ......................................................................................... 42

Table 4. 6: Work Experience ................................................................................................... 43

Table 4. 7: Challenges Encountered ........................................................................................ 44

Table 4. 8: Level of Usage ....................................................................................................... 46

Table 4. 9: Organization Performance ..................................................................................... 47

Table 4. 10: Rating ................................................................................................................... 48

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LIST OF FIGURES

Figure 2. 1: Accounting System Model ................................................................................... 24

Figure 2. 2: Computerised Accounting System ....................................................................... 26

Figure 4. 1 : Responsive Rate .................................................................................................. 38

Figure 4. 2: Gender of respondents .......................................................................................... 39

Figure 4. 3: Marital Status ....................................................................................................... 40

Figure 4. 4: Age of Responders ............................................................................................... 41

Figure 4. 5: Academic Qualification ........................................................................................ 42

Figure 4. 6: Work Experience .................................................................................................. 43

Figure 4. 7: Challenges Encountered ....................................................................................... 45

Figure 4. 8: Level of Usage...................................................................................................... 46

Figure 4. 9: Organization Performance .................................................................................... 47

Figure 4. 10: Rating ................................................................................................................. 48

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1.0 Chapter One: Introduction

The increase in global market of the world economy involves the participation of many

companies around the globe. Due to this increase, many companies are facing challenges in

accounting the losses in their taxes (Norfarah, 2017). However, the innovation of

information technology (ICT) has drastically changed and resolved the challenges in

financial management and accounting practices (Masanja N. , 2019). Information

technology application in accounting has in the resent years improved the efficiency and

performance of most organisations (Taiwo, J.N, Agwu, P.E, 2016). Accounting has taken on

an increasingly significant role in the workings of modern industrial societies. Accounting

plays a very significant role in many organizations' activities (Wickramasinghe, M., Cooray,

N., Dissanayake, T., Pemarathna, R., 2017). To improve efficiency and productivity, many

companies use computers to perform critical, including accounting functions; development

payroll systems, control of inventory, budgeting, cost and profit analysis (Akinbowale, O.E,

Olowokure, T.O, Adedara, M.T, 2018). The development and availability of accounting

software tools help in the elimination of error (Sherman, H.D, Young, S.D, 2016).

1.1 Background

According to the literature exiting, it was suggested that management of accounts are

essential in the management of accounts process (Pasch, 2019). Accounting takes an

important role in the operation of an organisation; most businesses use accounting software

to keep track of financial information that relates to the activities of an organisation

(Ganyam, A.I., Ivungu, J.A, 2019). It is important that financial information is kept updated

and reviewed by the organization, with the increase in accounting transactions and

exposure of information to errors due to complexity of these accounting systems, there was

a need for a system with high processing and storage capacity (Maziyar, G, Vahid, S

Mohammad, A, 2011). It is through this that most accounting software was developed.

The accounting practices were performed manually before the introduction of computerized

accounting system. These accounting records have been manually prepared, but nowadays

many accountants want to use the software application to enter transactions in books of

accounts, statements and make their analysis of financial information about their

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organization. The information was gathered from transaction reports and made Economic

compilations (Weber, 2011)

In (Frankwood, A and A. Sangster, 2009) further details on the effect of computerized

accounting on accounting records in Local government shall be measured by the extent to

which the local government is Use of CAS in execution.

The CAS deals with computer-based reporting of accounting transactions through various

accounting packages and is stored in a data base. The users of the database correctly

prepare reports. The initial computerized accounting framework provides all of the

fundamental criteria of every learning from database. Computer system application helps

simplify, integrate all business processes, cost efficiency and helps present all business

undertakings to financial report stakeholders precisely.

Accounting software is a computer program that helps accountants and book keepers

monitor and disclose financial transactions of a company. Accounting software defines a

category of application software that tracks and processes financial modules accounting

transactions such as accounts payable, accounts receivable, payroll and trail balance

(Carlos, F. Ricardo, S, 2004). Accounting software may be online based; accessible

anywhere at any time with a device which has internet or it may be desktop based (Unegbu,

2014). The use of accounting software will shorten the data processing time that usually

takes longer time if it is done manually (Otilia, D. Marian, M, 2015)

Little has been done on computerized accounting system in organizational performance at

local government level, this study aimed at assessing the effect of computerized accounting

system usage on organizational performance in Zambia with a specific emphasis on local

government (LGA's) in Lusaka.

Lusaka was established as a Local Authority in July 1913. Founded on the concept of a

Garden City and because of its favourable climate as well as its central position, Lusaka

was designated as the Capital City of Zambia in 1935. Due to the exponential growth of the

economy and the unprecedented infrastructure development which took place at an

instantaneous speed it prompted the colonial government to bestow Lusaka with the City

Status in 1960.

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1.2 Problem Statement

Software accounting is a class of computer programs that do accounting operations.

Currently, local authorities have taken various steps to improve accounting practices

performance, including converting to computerized software, as a result of which the

performance has been improved as compared to years of manual accounting. The

advancement in information technology have eventually led to the introduction of

computerized accounting systems in corporate reporting to help relevant and faithful

representative financial reports for both management and external users for decision

making (Greuning, 2006).

Software accounting is a class of computer programs which perform accounting operations.

Local authorities in Tanzania have taken various measures to enhance accounting

efficiency, including moving to computerized software, which has increased profitability

compared with years of manual accounting. (URT, 2003). There are several challenges in

information communication technology (ICT) with regard to Accounting Software

including information communication technology which drives computerized accounting

system (CAS) being concentrated mainly in Zambia as noted by URT (United Republic of

Tanzania) (2003).

The introduction of information management technology on Tanzania's computerized

accounting systems has presented many challenges. According to (Nfuka, 2012) it was noted

that the bureaucracy and lower managerial autonomy in local government limits the freedom

to coordinate output due to the complexities of the legal regulations that lead to difficulties

embedding computerized accounting systems. The problem was that when reporting large

amounts of transactions, some local government organizations previously used to use manual

accounting systems that were associated with a large number of records causing transaction

processing errors. The use of manual accounting in the past could be attributed to factors

such as lack of exposure to computer facilities, lack of expertise in computerized accounting

systems in LGA's and many others.

Studies have been done on the effects of computerized accounting systems and the quality of

financial reports in local government organizations (Mwaura, 2013); A study of the

implementation of the computerized accounting system in Kisumu, Kenya (Otieno, Polo J

and Oima, D, 2013). Thus, this study is intended to fill this research gap by assessing the

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impact of Computerised Accounting System Usage on organization performance in Zambia

with special focus in local government authorities (LGA`s) in Lusaka Province

1.3 Research Purpose

The purpose of this research is to explore the impact of computerized accounting system

usage on an organizational performance in Zambia.

1.4 Rationale of the study

Accounting information systems (AIS) coupled by improved speed, accuracy and reliability

and with good corporate governance practices lead to good firm performance. Literature has

studied the organization performance and AIS alignment but few studies have looked at the

relationship between characteristic of accounting software and firm performance. While the

impact of corporate governance and strategic decision making on firm performance has been

widely studied

1.5 Objectives of the study

1.5.1 General objective of study

a) To explore the effect of using a computerised accounting Systems on

organizational performance in Zambia

1.5.2 Specific Objectives of study

a) To assess the challenges that are encountered with the use of computerized

accounting systems in the organization.

b) To assess the level of usage of computerized accounting system in the

organization.

c) To assess the organization performing with respect to adoption of computerized

accounting system.

1.6 Research questions

a) What are the challenges that are encountered with the use of computerized

accounting systems in the organization?

b) What is the level of usage of computerized accounting system in the organization?

c) How is the organization performing with respect to adoption of computerized

accounting system?

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1.7 Scope of the Study

The study assesses the effect of using Computerised Accounting Systems on organizational

performance in Zambia (LGA’s) authorities. The study concentrated on representing other

Provinces in Lusaka.

1.8 Significance of the study

The results from this study are to give knowledge concerned with the effect of computerized

accounting system usage on organization performance in Zambia, the objectives of the

findings will help internal and external users in the professional deals with the accounting

procedures to know more about the scope of CAS that provide organization performance as

well as its impact on performance, the findings of the study can be used by future researchers

and some academicians on the same topic. Also the study will help the researcher to partially

fulfil her requirements for the award of Bachelor of Accountancy.

1.9 Organization of the Work

This work is organized in five chapters followed by references and appendices. The detail of

each chapter is described as follows:

1.9.1 Chapter one

It presents the introductory part which, among others, includes: background of the study,

statement of the problem, research purpose, rationale of study, objectives of the study,

research questions, and significance of the study.

1.9.2 Chapter two

It presents both theoretical and empirical literature. In addition to that, Conceptual framework

is presented in this chapter. The conceptual framework provides the relationship that exists

between the variables as refined from the literature review.

1.9.3 Chapter three

It provides the ideas which present the methodology that was used in carrying out the study.

It includes specification of model, the study area, research design, study population, sampling

design and their sampling techniques, data collection methods, validity and reliability, data

analysis techniques and ethical considerations.

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2.0 Chapter Two: Literature Review

Before the introduction of ICT into financial accounting practices, all the accounting

activities were performed manually. The introduction of computing systems has made it

easier for every accountant. In 2017, Amahalu, N.N., Abiahu, M.C., Nweze, C. L. and Obi, J. C

had conducted a comparative analysis of computerized accounting system and manual

accounting system in microfinance banks in Nigeria from 2010 to 2015. The outcome of the

findings indicated that accounting systems significantly contributed towards profitability of

the banks compared to the manual systems. The study further recommended that banks

should implement computerized accounting systems because it improves the overall financial

performance of the business (Masanja N. , 2019).

According to (Kingi, 2013) computerized accounting system is an organized procedure to

collect record and interpret accounting data with the assistance of a computer or automated

device. In other words, it is a computerized system where financial transactions are collected

or entered into a computer and analysed so as to create necessary documents and hence

journalize the financial records to provide the required accounting journals, the main purpose

of a computerized accounting system is to produce reliable and accurate financial information

or statements on a timely basis. At the same time, the computerized accounting should

generate appropriate information for decision making.

Due to the weakness of manual accounting systems, many private and public organisations

have been shifting to the computerized system. There are a lot of studies which have

examined the effects of computerized accounting systems in the government or public sector

(Mbelwa, 2015). Accounting information systems play a very important role in record

keeping, which amalgamate accounting principles and concepts which are used to examine

and record business transactions for a purpose to prepare financial statement and provide

accounting data to the end users.

2.1 Overview of literature

Accounting is defined in various ways by many authors. For example, (Weber, 2011) points

out those business owners controlled their organization financial report using accounting

procedures. (Sacco, 2008) gives out more clarification that accounting deals with a system in

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which financial reports used as the key factors that used by stakeholders as major

communication, summarized, analysed, and interpreted which facilitated by accounting

software, and computer –based like internet pin point by (Bretch and Martin 2006; Marivic

2009).

The global market has changed significantly over the last few decades, and we can see more

progress in the transformation of information systems in the next decade. Reviews of ICT

literature included articles on academic and technical subjects, with an emphasis on newly

published papers. Google's intelligent accounting papers used search engines, web and ICT to

collect information from various articles. Today’s executives are more creative and ambitious

than their forefathers, and technology plays a bigger part in that (Southwick, P. M, 2016)

Sometimes the 21st century is called the "Digital Age," e.g. listening to music, accessing

news, information, and entertainment on smart phones and tablets.

Many accountants are still using traditional systems that were developed 20-30 years ago that

are costly and inefficient. They are reluctant to change procedures and risk losing out to

rivals using systems underpinned by more recent advances in technology (Braine, 2006).

There is no argument that developing countries are becoming completely conscious of ICT’s

benefits and realize that ICT can solve many problems and these countries will slide behind

other countries without investing in ICT skills. Many countries, such as China, South Korea

and Singapore, have grown rapidly with the aid of ICT, according to Gebremeskel, et al.

(ITU, 2016).

2.2 Theoretical Literature Review

This section deals with the theories that are important to this study. The theories of this

review included systems theory, positive accounting theory and resource-based review theory

that impact on the organization performances.

2.2.1 Systems Theory

Kaufmann (2010) defined the frameworks to explain the history of creation as a complex

process and was more fully developed by a biologist Bertalanffy (2009). Bertalanffy

concluded that all is consisted and thus, we should research the interconnectedness as a way

of understanding the universe.

Gelinas, et al. (2005) investigated that the theory of systems is more important to this study

as this theory of systems techniques is applicable because the methods proposed by the

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theory are the more complicated model for entities that generated the components by

abstracting them from certain arrangement and component details which concentrate on the

dynamics which elaborate the functions, properties and relationship characteristics which are

internal or external to the system.

2.2.2 Computerised accounting

According to Wilson, R. A., and A. Sangster, (2010) Computerized accounting is known as a

total number of components which comprises together all inputs, storage, transactions

processing collecting and reporting financial information.

Bretcht and Martin, (2006); Marivic, A, (2009) Pin points that Financial information on

business dealings are recorded, organized, summarized, analysed, interpreted and

communicated to stake holders through the use of the computer and computer-based systems

such as the internet and accounting software, according to Meigs, F.R. and Mary. A, (2006)

elaborate the connotation of accounting (CAS) as a scheme that applies software to make all

process concerned with input, process, store and output under accounting which is used in

sequence in form of statement of financial position.

2.2.3 Resource-Based View Theory

Barney, (2006) developed the strategic emphasis on factor markets and the position of

expectations can be seen in the resource-based system, Barney's framework has proven to be

a strong foundation on which others can develop, the business strategy's current vision of

resource-based business strategy Theory or resource-based view (RBV) is based on the

principle of Economic rent, and the company's view as a collection of capabilities. This

outlook of strategy has a rationality and integrative role that places it well ahead of other

mechanisms of strategic resolution (Kay J, 2005).

Following on the RBV, Hoopes, D.G., Madsen, T.L. and Walker, G, (2003) recommend a

broader case for sustained differences between companies and establish a specific theory of

competitive heterogeneity. The Resource Based Views lack clarification about their central

concept and lack of any strong boundary drawbacks to constructive discussion. One may

invoke the logic based on definition or hypothesis because the theory lacks specificity, it has

been suggested that resources have one potential source of competitive heterogeneity. For

reasons other than sticky capabilities, competitive heterogeneity can make it available

(Hoopes et al. 2003).

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Competitive heterogeneity refers to a continuation and systematic performance with

differences among close competitors. The theory is relevant to this research because it helps

NGOs make its competitive in their performance in order to achieve their main objectives,

mission and vision as well.

2.2.4 Positive Accounting Theory

Positive theories used to make more explanation and prediction (e.g. what does or what will

happen) and are established in empirical data (Ryan et al, 2002). Since they are established in

empirical data, researchers seem to be offering accountancy deals the prospects, the validity

of the critiques of Johnson and Kaplan (Relevance Lost) management accounting practice.

This method of research draws on a wide variety of theoretical frameworks to resolve

accounting problems in financial management. Different research approaches and

methodologies are not considered to be competitive, but instead are used together to provide

a variety of insights into a broad range of management deals with research questions (Ryan et

al 2002).

2.3 Accounting

Accounting is not only the oldest of management disciplines but also the most stable. Despite

its stability and continuity during the past several decades, accounting has seen major

changes. It would be surprising if accounting is the same as it is today one century from now.

Although we can't look far beyond, we can evaluate the current circumstances for hints about

what to expect in the next decade or two (Sunder, S, 1999). Accounting provides financial

information of an organisation. Owners, managers, investors and other interested parties

need financial information; it’s needed because of decision-making by owners, managers,

investors and other interested parties. Financial accounting is the art of identifying,

measuring, recording, classifying and summarizing and communicating, analysing and

interpreting money, transactions and events of a financial nature in part at least the results

there of (Woode, F., and Sangster, A, 2008).

2.3.1 Definition of Accounting Concept

Weber (2011) brings out a point that business owners controlled their organization financial

report using accounting procedures and Sacco (2008) gives out more clarification that

accounting deals with a system in which financial reports is used as the key factors that used

by stakeholders as major communication, summarized, analysed, and interpreted which

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facilitated by accounting software, and computer –based like internet pin point by (Bretch

and Martin 2006; Marivic 2009)

2.3.2 Role/Functions of Accounting

A business organization can be seen as a collection of contracts among different parties,

according to Sunder (1997): staff, shareholders, clients, suppliers, managers, creditors,

auditors, government, among others. Each Contracting Party agrees to provide services. For

instance, employees and managers contribute skills, shareholders and creditors contribute

capital, vendors provide machinery and materials, and customers provide cash. Each

participant demands at least as large an inducement as the opportunity value of his

contribution to the organization. To be successful an organization must satisfy each of its

participants with its production technology and set of contracts. If he can get more he can

leave the company somewhere. If enough people are leaving the company would fail.

They argued that, accounting is necessary to assemble, implement, enforce, modify, and

maintain the contract set of organization. Accounting therefore plays five main functions in

an organization.

The first control requirement is to devise a system of measuring each agent’s contributions. It

should also determine the amount of incentive due to them, and monitor the inducements

distribution so that each agent receives their due, no more and no less.

In addition, accounting distributes information to different factor markets in order to keep

them solvent and find replacements for those members who leave. Finally, in the form of

common knowledge or public disclosure, accounting makes some information available to

help reduce conflict between participants at the time they renegotiate their contracts (Sunder

1997).

The second function is that the accounting system Measures, tracks and monitors the outflow

of Organizational Resources. Payroll and workplace insurance cards, delivery to Clients,

accounts payable to vendors and tax reports calculate capital outflows Governing (Sunder

1997).

In the third function, the accounting system compares the data on the inflow of resources and

Outflows to establish who performed his contract and to what extent. Accounting system

prepares qualitative reports on resource inflows and outflows relating to various types of

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individuals in an organization. Such statements are used to evaluate and modify the contracts

for these people (Sunder, 1997)

In a fourth function, accounting helps assemble and sustain the contract set by identifying

among others the correct participants in the labour factor markets, managers, consumers,

suppliers and investors. All these people must be persuaded that joining such an endeavour is

in their own best interests. Pro forma financial statements, business plans and budgets

compiled by the company before the start of the operation assess the costs and benefits of

working in various positions at the proposed company. When Vacant contract slots, they

must be filled from the factor markets (Sunder, 1997).

Finally, in its fifth function, when contract terms expire, they are frequently renegotiated

under changed conditions. Agents are tempted to issue threats, if their terms were not revised

in their favour, to quit their position in the organization. Sometimes such bluffs and threats

lead to a deadlock in negotiations, strikes, and consequently deadweight losses for society.

Accounting carries out its fifth function by sharing at least a minimum set of information

among the negotiating parties and makes it common knowledge, and helping to reduce the

possibility of break - down. This is the primary purpose of disclosing the public in larger

organisations.

2.4 Accounting Systems

Every other company applies accounting because it is widely accepted that companies are

required to disclose certain financial and management relevant data to economic users and

this is because accounting is an essential tool in business decision-making. Accounting thus

plays an important part in each company; businesses are required to maintain proper account

books (Section 123).

Accounting is divided into two categories: manual accounting and computerized accounting

systems (Weber, 2010).

2.4.1 Manual Accounting Systems

A system is a set of interdependent components which acquire certain objectives. Manual

accounting is an information system and according to Romney & Steinbart (2009), manual

accounting has been described as an information system organized to collect, store and

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process data and to store, maintain, track and report information so that an organization can

achieve its goals and objectives. Tanis and Dalci (2002) emphasised that, information system

has the following components; Goals and objective, Inputs, Output, Data storage, Instructions

and Procedure, Users, Control and Measures. Accounting systems as an “information system

is a man-made system that generally consists of an integrated set ofcomputer-based and

manual components establish to collect, store, and manage data and to provide output

information to users” (Gelinas et al, 2005).

Manual accounting reveals that workers manually conduct the entire accounting process on a

regular basis: writing trial accounts, journalising transactions and filing financial statements.

Waterfield and Ramsing (1998), points out that the accounting system can be a basic manual

based on the general publication (Where transactions are chronologically reported as debits

and credits), general ledger (where the general journal operation is summarized by account

number); And other journals needed for the administration of Business, such as purchase,

payment, sales, receipts and newspaper payroll. (Institutions usually do not prepare any of

those other journals because of the expense of keeping several manual journals.) They

further stated that, a manual accounting system typically includes at least the following and

thus presented in fig 2.1 on the next page.

24 | P a g e

Figure 2. 1: Accounting System Model

A MANUAL ACCOUNTING SYSTEM MODEL

Transaction

Entry

Chart of

Accounts

Journals

General

Figure2.1 : Gelinas et al. (2005)

Lots of transactions that have to be handled in the accounting cycle make this process routine

and even a little error will cost the entire cycle from the very beginning to find and correct

the error. "... Data processing is slow in manual accounting systems and is subject to error"

(Grabski and Marsh, 1994). Despite the advantages Manual accounting systems has which is;

comparative cheap workforce and resources, reliability, independence from machines, skilled

worker’s availability; the manual system disadvantages include: reduces speed, increases

workload of accountants, relatively slower internal control reporting, routine work and some

others such as the issue of backups.

Other

Journals

General

Ledger

Financial

Statement

Transaction

And management

Reports

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2.4.2 Computerized Accounting Systems

Improving this technology has replaced manual bookkeeping systems with computerized

ones, thus computers in most businesses now execute accounting information systems that

were previously performed manually. Though accounting systems have been around for

decades, the advent of business technology and computerized accounting systems is

dramatically altering the field of play.

Vitez (2010) checked that paper ledgers, manual spreadsheets and handwritten financial

statements have all been converted into computer systems and that individual transactions

can be addressed easily. Computerized accounting systems adopt the same logic in a manual

system as journals, ledgers, reports and statements. Computerized systems simply consolidate

posting functions and other basic tasks into a "behind the scenes” system. Companies can

also generate reports and financial statements easier, allowing for better performance

management reviews.

Therefore, Computerized Accounting System is a computer-based framework that

incorporates accounting principles and concepts as well as the concept of information system

for tracking, storing, analysing and delivering financial information to its users for economic

decision making (Gelinas et al, 2005). The definition of a Computerised Accounting System

from above shows that a Computerised. Accounting System has the following components

with an illustrative diagram in figure 2.2;

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Figure 2. 2: Computerised Accounting System

Computerised Accounting System

Storage

Input Processing Output

Feedback Feedback

Users

Figure 2.2 (Gelinas et al, 2005)

Input: The data inputs are facts gathered and processed by the information system.

Data input includes the capture of data from a source document such as a purchase

order or sales order.

Processing: The data collected must be processed and organized into a functional

form to generate accurate and relevant results.

Output: Output is the meaningful and useful information that the information

generates Installation. It's normally delivered in a report format.

Feedback: After submitting the information in the form of a report the need arises to

get feedback. Feedback appears to act as an input source and also as a control

measure in the information system.

Storage: It serves as the repository of relatively permanent data maintained over an

extended period of time.

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2.5 Empirical studies on Computerized Accounting System

The influence of computerized accounting systems on the organisational performance has

been discussed thoroughly, with the increment in computerized accounting system; there are

several studies which have discussed this topic in details. Examples of the studies are below;

2.5.1 Adoption of computerised accounting

According to Anael (2017), the impact of computerised accounting system usage on

organisational performance in Tanzania was assessed with a focus on the local government

authorities (LGAs). The study suggested that in order to achieve better efficiency, the

government would provide appropriate training to accounting workers to improve knowledge

about the accounting system.

A study by Okoye and Oghoghomeh (2011) was conducted to investigate the impact of the

computerized accounting system on external audit functions, the study's findings revealed

that while the auditor’s computer knowledge makes a difference in its effective audit of a

computerized accounting system, some factors serve as a limitation of its effectiveness.

Another Munisi study (2013) also assessed the impact of the computerized accounting system

in ensuring effective financial control in Tanzanian local government authorities. This was a

case study carried out in council of Musoma district. After a comprehensive data analysis, the

research results revealed that computer accounting system has a significant impact in the

overall financial control in Musoma district council. In light of these results, the author

recommended that there should be a system of administrators so as to monitor and restrict

unauthorized personnel from accessing the accounting system.

Another research by Sam, Hoshimo and Tahir (2012) conducted a study on the adoption of

Computerized Accounting Systems (CAS) in small and medium-sized enterprises (SMEs) in

Malaysia, and found that the adoption of computerized accounting systems among SMEs is

strong. The study results also showed that the SMEs 'CEOs' innovativeness is contributing to

the use of CAS.

Bahati (2014) examined the effect that computerized accounting has on payroll accounting

efficiency. This was a case study performed at the Authorities for Municipal Sanitation and

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Sewage (UWASA). The results indicated that in accounting practices, the adoption of the

computer accounting system has both positive and negative impacts. To further expand the

overall discussion of empirical studies, the following studies provide a comprehensive

analysis of the empirical studies on local government authorities.

According to Chan and Kelvin (2010) institute that 52% of LGAs in Malaysia used

accounting software that has already being used while only 9 per cent mass produced on the

outside acquired software packages. This occurs due have lack of skilled people on

information technology. The researchers give out his opinion about the combination of

LGAs on using both experts and business knowledge. Usually, the LGAs one of the public

institutions versed to do their business but they professionals on how use accounting

software.

According to Powell and Xiao (2006), major UK businesses have been surveyed and

observed to look into the variety of information management technology used in LGAs to

plan their transactions. Most metrics display the level of computerization software known as

CAS in use, implemented, workstation to the ratio of the employees and their years. Some

businesses have ample knowledge of CAS to be about 94%.

Under Powel and Xiao's (2006), it was said that this finding indicates that the reach of

computerized use is greater for big business than for those medium-sized companies. Certain

results in other researchers have argued that all companies have simplicity of CAS

determinants according to their size. The establishment of Hunton and Flowers (2007) was

discovered by (Thong 2009), in which the business amount was assumed to be negatively

correlated with the level of CAS used in accounting documents. The expansion attribute of

the organization to lower resources and the availability of risk barriers as cost of CAS

decreased where some of the organizations of all sizes benefited from CAS development. The

medium-sized companies can be developed from the founding of different small business

firms. As the subject of trade indicated Managers who control the assets of the business have

limited liabilities.

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2.5.2 Other Factors that Determine the Adoption of CAS in LGAs

Arrivals of official lead to the cost reduction of microcomputers, consumers use

computerization to accomplish their mission, contribute significantly organization has put

CAS on useful in recent years.

The argument of Weber (2011) is to facilitate the management function to motivate their

employees about the adoption of computer system concerned with the accounting system. To

increase business efficiency and effectively and availability of information on time obtained

from establishment of computerized accounting system which help to increase benefits in

business enterprises.

DeLone, 2010. Lack of time is another obstacle facing the establishment of computerized

accounting system in the organization. As stated by Chenhall (2006), observation of the

automated accounting systems is costly. Henry (2007) pinpoints that there was a shortage of

professionals on CAS stated by Bretch and Martin (2006).

Gray (2011) elaborated that self-efficacy of computer known as findings of individual`s

competence in computer in use. The business organisations that have CEOs (usually the

company owner) undertake computer workshops and are responsible for bringing into

practice machine self – efficacy.

On the other hand, the directors can hinder any valuable CAS improvement through

aggression or impassiveness towards CAS. While CAS adoption is to be expected in

SME where the Directors find the CAS enthusiasm and experience, the problem is what exact

CAS expertise are necessary? However, Chanell and Kelvin (2010) made additional

description on the knowledge required to develop CAS. Under this knowledge provide

facility that fixes more technical in difficult networked environmental and how business

purposes will be integrated to meet firm’s objectives.

As another specialist in research Herman (2006) contended that business clients were vital

motivated to make execution of CAS to beat their arrivals .The position of Public Practice

Accountants is distinctive and extremely exceptional, its capacity is demonstrated

investigation of accounting system concepts like GAAP, make more elucidation and strong

counsel to their customers dispersing the measure of contracting opted among various clients.

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2.5.3 Impact of CAS in LGAs

McBride (2000) pinpoints that software used in computer produce all types of financial

management information quickly such as financial plan and variation. For decision making

data dispensation and make analysis done in accuracy in time with more perfect hence

availability of neat information that meet managers requirements (Wood 1999).

Indira (2008) defined the progress of business performance as the result of accounting

software which is highly integrated with the application used to transform business functions

into performance enhancing features that tackle inventory control, accounting concepts and

financial reporting. Mc Rae (1998) insisted that it helps the availability of faster information

and decision done quickly in the company.

To obtained quality financial reporting the professional accountants should use computerized

in order to make the accurate reports. Carol (2002) state the office competence increased by

computerized general ledger, payroll, and other accounting tasks in business organization.

The credibility of CAS in backups and speed provided made availability of up to date account

balances in time for management decision making. In saving time hence to obtain a financial

report which has more reliable and neat information (Lewis, 1999).

Research by Daoud and Triki (2013) finds that most people who use their organization's

computerized accounting information system are very proactive in promoting business

performance in the firms. The goal of this research was to discover more about the impact of

using computerized information in the preparation of accounting information relevant in an

ERP environment that generates business performance. Under this performance, the

researcher discovered that there is competence which has a positive impact on the

development of the company in order to improve business performance.

Like other authors, Abdallah (2012) conducted a research which gave more clarification

about the impact of using accounting information system on provision of quality report

prepared annually. In LGAs the study found that there is existence of forces after the

operation on accounting information system used on providing quality of financial report.

Most of these the researcher recommended that most of professional should focus to improve

the devices function on accounts department, provide training to LGAs staff.

Breen (2003) conducted a study to examine small businesses whether there is any disturbance

that prevents small businesses from migrating by the use of computerized accounting. This

survey was performed by two SME groups. The study found progress in providing

knowledge of barriers that obstruct the organization's use of a CAS.

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2.6 Determinants of Quality Financial Reports on Organizational Performance

2.6.1 Computerized Accounting Systems

Computerized accounting software handles the software used to process the accounts

information system work. These are designed to take advantage of a variety of benefits such

as routine accounting data size, time spent, quick data analysis, statements and briefs on

financial accuracy. Powerful and secure flow of information enhancing the company's ability

to meet corporate and business strategy goals (Manson, Sherer and McCartney, 2001). This

in turn help the company to increase the prospects goodwill of the firm`s survival (Platt and

Platt, 2012). This can be evaluated by the procedures used in recording transactions in the

software, and its mechanism was used (Keating and Frumkin (2003).

2.6.2 Computerized Accounting System Security

As the organisation is becoming increasingly depend on Computerized accounting system in

the execution of their project to make company work efficiently, they face several threats that

are compromised in their method. Those risks are available in the form of computer fraud,

computer attacks (viruses’ attacks like Trojan) and security breach (Grabski and Marsh,

1994). And money related reports are done consequently (Grabski and Marsh, 1994).

2.6.3 Transparency

Transparency and accountability means making internal and external financial statements

available by those who are not financial experts who want to be able to read and understand

the financial reports. By making them readily accessible, they mean being open to those who

want to check and want to know your financial records.

These two leadership qualities are also characterized by holding dialogues on your budget

process and other important vision and mission used to define events with the policy board,

constituents and beneficiaries. These public events help them to have assurance that what

your strategic plan wants to do is in accordance with what is needed in the operating of the

firm’s objectives. According to Boice (2004), accountability refers to liability for financial

reports or operational transparency requiring demonstration of how the organization is being

denoted and how the organization is achieving its goals effectively and efficiently.

Transparency can be measured through openness, honesty and trustworthiness.

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2.6.4 Leadership

Leadership is the process that helps to accomplish a certain specific activity in which one

person can recruit and provide assistance and support the fellow workers or group. The

importance of leadership is to shape the backbone that will help make strategy for

improvement in the company. The leader's function is to promote account book preparation

and the development of quality financial reports which begin with creating and maintaining a

personal and organizational focus on the needs of internal and external needs or users.

According to Keating and Frumkins (2003), give more clarification that leadership has three

scores as follows: Independence board / management committee, Effectiveness board /

management committee and Effectiveness of NGO Management. Sloan (2001) said the

financial report is the first source of autonomous and true communication about company

manager’s performance.

2.7 AIS and Business Performance

Dibrell, Davis and Craig (2008) suggest that business performance can be further improved

in quality through the incorporation of either a product or process-oriented innovation

strategy with IT / IS investment. Studies have shown that the implementation of accounting

information systems in Malaysia, Spain, Finland, Pakistan and Iran improves the results,

productivity and efficiency of the business, but in malaysia (Norfarah, 2017) there is little

research conducted on the impact of computerized accounting system on business

performance of firms.

2.8 Literature review underpinning study

This research is aimed to highlight the impact of computerized accounting system usage on

an organizational performance in Zambia There are similar studies that have been conducted

in order to highlight the link between computerized accounting system and performance of

public companies. Currently there are several examples of ICT elements that exist in the

International Accounting Education Standard Board’s Conceptual Framework and Education

standards.

The first phase of the literature review conducted by Jaqueline et al. 2017 revealed that there

are various technological advancements that have emanated in recent years such as bitcoin

33 | P a g e

and block chain, cloud computing, AI, drone technology and smart phones. It also suggests

exciting opportunities for the accounting profession that have recently arisen from

technological advancements such as new roles in forensic auditing, conducting audits with

drone technology, managing financial transactions with bitcoin and block chain, engaging

with stakeholders and clients through social media, and using big data to aid in analysis and

interpretation (Jacqueline et al., 2017).

Cloud computing is the practice of using a network of remote servers hosted on the internet

to store, handle and process data, rather than on a local server or device, which has had huge

consequences for the way businesses do business (Dunbar, 2017). The major benefit for

companies is that cloud computing provides the functionality of existing IT services (Marston

et al, 2010), with no need for specific desktop computers, software, infrastructure costs and

local networks. It also offers companies a chance to access external functionality that would

otherwise be unfeasible for the company. Cloud computing is changing all industries and has

tremendous implications for the accounting industry (Riddell, 2015).

Sledgianowski, Gomaa and Tan (2017) illustrate how big data is and information systems

could be integrated into accounting courses including Introductory accounting, financial

accounting, management accounts, cost accounting, financial interim accounting, audit, AIS

and taxation.

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2.9 Conceptual Framework

Independent Variables Dependent Variable

Level of awareness on CAS Access to Use

A conceptual framework explains the relationship between five (5) independent

variables, and one (1) dependent Variable (Mugenda and Mugenda, 2003). In this

study the independent variables shows the Impact of Computerized Accounting

System Usage, meanwhile Organization Performance stands as dependent variable

as illustrated above in figure 2.

2.10 Hypothesis

Ho: Usage of computerized accounting system has no impact on organization performance.

Hi: Usage of computerized accounting system has positive impact on organization

performance.

ORGANISATION

PERFORMANCE

Marital Status

Qualification Of Staff

Level of awareness and

experience with CAS

Other Use

Training

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3.0 Methodology and design

This chapter discussed about how the data were collected and how were analysed. Sub-

sections covered are study area; research design; study population; sampling; data collection;

analytical technique; model specification; and ethical consideration.

3.1 Research Approach

In this study, quantitative research approach model that can be used by managers to help

address specific situations or problems. Frequently, quantitative methods involve collecting

information (or using information collected by others) and manipulating the information

using mathematics and statistics.

This approach will be used as it allows collecting more data to investigate the facts, testing

theories and hypotheses. As a result, quantitative is more suitable to represent tested theories

comparing to qualitative method since there’s an unaware of essential variables to analyse

and the sensitivity of data collection relating to the social settings.

Using this method allows the researcher to streamline research problem to restricted variables

and supports to understand the result of analyst (Creswell, 2009). This type of research is

more objective and reliable as the researcher cannot interpret the facts of the research based

on biased opinion.

3.2 Research Design

The study makes use of descriptive survey research design. The descriptive survey research

refers to as scientific method where by data is gathered without altering the setting and this

includes surveys and investigations of various forms, targeting to get evidence that reveals

prevailing phenomenon (Mugenda, 2003).

3.3 Research Strategy

A case study approach and interview strategy was used to collect information in standardised

from groups of people, articles, research paper, journals, books, company website, annual

report and authentic sources was used to collect secondary data and information.

3.4 Sampling frame

The target frame that was used in this research was random selection of people in Lusaka

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3.5 Sample size and sampling techniques

The determination of sample size was drawn from a population. The sampling techniques that

were used in this research are probability sampling; simple random sampling techniques

enabled them to conclude the findings back to the larger population.

3.5.1 Sample Size

The sample for the study is made up of fifty (50) LGAs workers dealing with accounting in

Lusaka province, they were selected through a non-proportional quota sampling which is the

non-probabilistic analogue of stratified random sampling methods normally used to guarantee

that smaller groups are sufficiently represented (Mugenda, 2003).

3.5.2 Sample Techniques

Kothari (2006) stated that sampling is the collection of some parts that used to present the all

respondents based on judgment or suggestion, In other words it is a process of deriving

sample from the population. There are different types of sampling but for this research a

purposive sampling method was used. The respondents from LGAs were selected in Lusaka

province involved in accounting.

3.6 Operationalization of Research Variables.

For the operationalization of this research, the independent variable and dependent variable

was described based on the context of the research

3.7 Data collection techniques

This study essentially collected primary data using questionnaires and secondary data using

books, articles, publishers, magazine, and processed reports associated with many issues dealt

with this case. The questionnaire was divided into two sections. Section “A” was about

computerized accounting system and section “B” dealt with computerized accounting system

security. The sampling technique used in this research was random probability sampling

method which is usually popular among researchers as this technique eliminates prejudices

by allowing the results to exceed depending on the sampling population. On the contrary,

respondents are selected by researcher in non-probability sampling method may have impact

on validity of the results

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3.8 Data analysis methods

Data analysis involves the process of inspecting, cleansing, transforming, interpreting and

modelling data with the goal of discovering useful information to support the hypothesis

underlying each question (Judd & McClelland, 1989) depending on nature of the sampling,

measurement and data collecting method.

Quantitative analysis for questionnaire was performed using Statistical program Excel

editing and analysing all sorts of data due to its effectiveness in managing data with wide

range of options, generate better results and is specifically designed to analyse statistical data

(Green and Salkind, 2010).

To determine the objective of this research, statistical procedures will be conducted using

Excel to measure accuracy of the data.

3.9 Data Validity and Reliability

A questionnaire’s validity refers to the extent to which it tests what it says it is meaning

(megenda and mugenda, 2003).

In testing validity, the researcher prepared questionnaires and presented them to the

supervisor for suggestion on the relevance, clarity and suitability of the information. The

supervisor made some suggestions which were incorporated into final draft.

In order to determine the reliability of the research instruments, the researcher administered

questionnaires and tested those using different respondents, after which the researcher made

the required adjustments to provide relevant data for questionnaires

3.10 Ethical Considerations.

The study strives to avoid any form of harm to respondents by observing the ethical rules.

This is in line with Mugenda and Mugenda (2003) who stated that researchers should avoid

physical or psychological harm to the participants. The information obtained from the

respondents in the process of the whole research was kept confidential.

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4.0 DATA ANALYSIS AND PRESENTATION

This chapter presents the analysis and discusses the results as per the methodology explained

in chapter three.

4.1 Overview

Respondents Profile analysis

The study area was done in Lusaka whereby members of staff of LGAs specialised in

Accountings in Lusaka province were surveyed. The study consisted of 30 respondents from

LGAs operating in Lusaka out of 50 respondents that were planned and the response rate was

86 per cent.

Table 4. 1: Responsive Rate

Response Rate Frequency Percentage (%)

Responsive

Non Responsive

30

20

86

14

Total 50 100%

Source: Field Data (2020)

Figure 4. 1 : Responsive Rate

Source: Table 4.1 Responsive Rate (2020)

86%

14%

Responsive

Non responsive

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4.1.1 SECTION A: BACKGROUND OF RESPONDENTS

The findings in Table 4.2 indicate that, from the number of total respondents which was 30,

(63% n=19) were male while (37% n=11) were female.

Table 4. 2: Gender of respondents

Gender rate Frequency Percentage (%)

Male

Female

19

11

63

37

Total 30 100%

Source: Field Data (2020)

Figure 4. 2: Gender of respondents

Source: Table 4.2: Gender of respondents (2020)

63%

37%

male

female

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Marital Status

The issue of marital status of workers involved in financial management in an organization

especially on computerized accounting was investigated. The number of marital status is 14

implying that 46% of respondents are married. Married workers are faced with a lot of tasks

ranging from taking care of the family and therefore expected to contribute less to

organization performance compared to the unmarried. Though this may not always be the

case.

Table 4. 3: Marital Status

Marital Rate Frequency Percentage (%)

Single

Married

Widow

Separated

Divorced

8

14

2

3

3

27

46

7

10

10

Total 30 100%

Source: Field Data (2020)

Figure 4. 3: Marital Status

Source: Table 4.3: Marital Status (2020)

27%

46%

7%

10%

10%

Single

Married

Widow

Separated

Divorced

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Age of respondents

Age is important to this study since age affect performance of a worker. Age is linked to

experience and creativity.

Table 4. 4: Age of Responders

Age Frequency Percentage (%)

20 – 29

30-39

40-49

50 and above

5

15

7

3

17

50

23

10

Total 30 100%

Source: Field Data (2020)

Figure 4. 4: Age of Responders

Source: Table 4.4: Age of Responders (2020)

17%

50%

23%

10%

20- 29

30-39

40-49

50 and above

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Academic Qualification

The use of computerized accounting systems requires someone with computer knowledge

and accounting knowledge. The question of which level of education is most desired for

workers involved in financial management to bring high organization performance.

Table 4. 5: Academic Qualification

Academic Rate Frequency Percentage

Primary

Secondary

Certificate

Tertiary

Diploma

Degree

Post Graduate

0

0

0

1

2

24

3

0

0

0

3

7

80

10

Total 30 100%

Source: Field Data (2020)

Figure 4. 5: Academic Qualification

Source: Table 4.5: Academic Qualification (2020)

0%0%

0%

3%7%

80%

10%

Primary

Secondary

Certificate

Tertiary

Diploma

Degree

Post graduate

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Years of Working

The issue of experience of workers involved in financial management in an organization

especially on computerized accounting was investigated. The findings in Table 4.6 and figure

4.6 below indicate that, from the number of total respondents which was 30.

Table 4. 6: Work Experience

Number in years Frequency Percentage (%)

0 - 5

5 -10

10 - 15

15 and above

7

13

3

2

28

52

12

8

Total 30 100%

Source: Field Data (2020)

Figure 4. 6: Work Experience

Source: Table 4.6: Work Experience (2020)

28%

52%

12%

8%

0-5

5-10.

10-15.

15 and above

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Awareness is as important as experience. Being aware of the CAS is a step towards good

performance. About 90% of workers are aware of the Computerized Accounting System. The

issue of who access the computer installed with accounting software in an organization is of

important due to security reasons. About 97% of respondents said that their institutions allow

only authorized personnel to use the computer installed with the software and about 60% of

respondents claimed that the computers installed with accounting software were also used for

other purposes.

The researcher went further to know when the organization was established and the results

indicated that, about 93% of workers said the organization was established in 1913 and 7% of

workers were not sure.

4.1.2 Results Study

This section provides findings regarding the three (3) objectives of this study which are as

follows:

1. To assess the challenges those are encountered with the use of computerized accounting

systems in the organization.

The results indicate that, about 43% reported that computerized accounting system requires

training to staff which is a challenge, about 27% reported that computerized accounting

system caused loss of data, 20% are challenged with the associated additional costs, and

about 10% claimed it has resulted into wrong data entry

Table 4. 7: Challenges Encountered

Details Frequency Percentage %

Training to staff

Loss of Data

Additional cost

Wrong Data entry

13

8

6

3

43

27

20

10

Total 30 100%

Source: Field Data (2020)

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Figure 4. 7: Challenges Encountered

Source: Table 4.7: Challenges Encountered (2020)

The researcher asked if there are any measures taken to solve these challenges. The results

indicate, about 72 per cent of respondent reported that the organization is taking measures to

overcome these challenges. About 82% claim that simplification of CAS will improve

organization performance. Since the challenges encountered are related to the choice of the

computerized accounting software, the researcher investigated the factors that are considered

in choosing the accounting software. The results show that about 60% per cent of respondents

claimed cost of training is considered in choosing accounting software, about 23% claimed

initial cost of installation, and about 17% considered the acceptance by users.

2. To assess the level of usage of computerized accounting system in the organization.

The researcher found that, all respondents in the LGAs surveyed in Lusaka Province use

Computerized Accounting System. It was further found that about 77% of respondents

use Pastel in accounting system in organization, 23 per cent use Excel, and the remaining

0% per cent use Epicor.

43%

27%

20%

10%

Training to staff

Loss of Data

Additional cost

Wrong Data entry

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Table 4. 8: Level of Usage

Detail Frequency Percentage %

Pastel

Excel

EPCOR

23

7

0

77

23

0

Total 30 100%

Source: Field Data (2020)

Figure 4. 8: Level of Usage

Source: Table 4.8: Level of Usage (2020)

The researcher asked the frequency of use of these programs. The results show that, about

53% of respondents use the computerized accounting system daily, 27% use often, and the

remaining 20% use few times.

It was also found that about 87% of respondents acknowledge that CAS improves accounting

records. About 77% of respondents attend training programs on how to operate CAS, and

about 67% stated that these trainings take place annually.

Trainings are given to equip workers with the updates in CAS usage.

77%

0%

23%

Pastel

Epcor

Ms excel

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It was also found that about 97% of respondents reported that only authorized users are

allowed to use the accounting software and about 60% reported that the computer installed

with accounting software are used for other purposes.

3. To assess the organization performing with respect to adoption of computerized

accounting system

The respondents were asked to state if the usage of computerized accounting system

increases organization performance. The results indicated that about 87% of respondents

agreed that CAS increase organization performance and 13% of respondent did not agree.

Table 4. 9: Organization Performance

Valid Frequency Percentage (%)

Yes

No

26

4

87

13

Total 30 100%

Source: Field Data (2020)

Figure 4. 9: Organization Performance

Source: Table 4.9: organization performance (2020)

87%

13%

Yes

No

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The researcher further requested for the respondents to rate the organization performance

from 1 – 10. The following were the results.

Table 4. 10: Rating

Details Frequency Percentage %

1

2

3

4

5

6

7

8

9

10

0

0

0

3

11

7

4

3

2

0

0

0

0

10

37

23

13

10

7

0

Total 30 100%

Source: Field Data (2020)

Figure 4. 10: Rating

Source: Table 4.10: Rating (2020)

0, 0% 0, 0% 0, 0%

3, 10%

11, 37%

7, 23%

3, 10%

4, 13%

2, 7%

0, 0%

1

2

3

4

5

6

7

8

9

10

49 | P a g e

It was also found that about 86% of respondents acknowledge that CAS improves accounting

records. About 77% of respondents attend training programs on how to operate CAS, and

about 67% confessed that these trainings take place annually.

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5.0 Discussion and Interpretation of findings

This chapter discusses and interprets the findings with regards to the research problem, study

objectives and literature review. The type of CAS used in an organization is a concern of this

study. As explained earlier that the majority use Pastel followed by Excel.

This study aimed at assessing the impact of computerized accounting system usage on

organization performance in Zambia with special focus in local government authorities

(LGA`s) in Lusaka Province. The study used mainly primary data from 30 respondents

selected using purposive sampling techniques.

Under the descriptive analysis the study found that, all respondents surveyed in the

LGAs use Computerized Accounting System. It was found that about 43% reported that

computerized accounting system training to staff which is a challenge, the reason might be

due to lack of time to undertake training (Proudlock et al., 1999) and the costs that come with

the training (Head, 2000). About 27% indicated that computerized accounting system caused

loss of data, 20% are challenged the additional costs, and about 10% reported that it resulted

into wrong data entry. The Researcher asked if there are any measures taken to solve these

challenges. The results indicated, about 62% of respondent reported that the organization is

taking measures to overcome these challenges. About 82% claim that simplification of CAS

will improve organization performance.

The researcher asked the frequency of use of these programs. The results show that, about

53% of respondents use the computerized accounting system daily, 27% use often, and the

remaining 20% use few times.

For security reasons about 97% of respondents said that their institutions allow only

authorized personnel to use the computer installed with the software and about 60% of

respondents claimed that the computers installed with accounting software were also used for

other purposes.

The organizations that organise training programmes to their workers perform higher than

those who ignore this practice. There is a difference in the performance between the

organization that arrange trainings for their workers in computerized accounting and those

who do not.

The organizations that allow only authorized employees to access computers installed with

accounting software and used for accounting perform higher than those who allow every

employee to access computers with accounting software.

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Also, it was found that organizations that use computer for accounting purpose only have

higher performance compared to those who allow even other uses. Organizations that use a

specialised computer for only accounting purpose are ahead in performance than those who

use the computer for many purposes.

The finding that computerized accounting system necessitates training to staff which is a

challenge calls for the central government support in training workers regularly.

The researcher found results that indicate that Marital Status, Qualification of Staff,

Experience and Awareness, Training and Other Use are significant factors influencing

organisation performance in LGAs in Lusaka. The explanation is below

Marital Status: The issue of marital status of workers involved in an organisation especially

on computerised accounting system was investigated in relation to organisation performance,

compared to those who are single or otherwise married employees involved in accounting

were found to be associated with low organisational performance the reason might be

because married people are concerned with many issues concerning family.

Qualification of Staff: The use of computerised accounting systems for instance requires

someone with computer knowledge and accounting knowledge. The question of which level

of education is most desired for workers involved in financial management to bring high

organisation performance is addressed under this study. The first observation is that,

organisation performance is positively associated with years of schooling.

Experience and awareness: This study goes beyond by presenting also the desired years of

experience for the worker to bring maximum performance in an organisation. As experience

of increases so does the performance of an organisation goes up. Being aware of the subject

matter is a step towards good performance. This study investigated how workers who are

aware of the Computerised Accounting System differ from those who are unaware in relation

to organisation performance. As expected the study confirms that awareness is positively

associated with organisation performance. Workers who are fully aware of the Computerised

Accounting System report higher organisation performance than those who are unaware.

Other Use: Another important investigation was on how many uses the computer installed

with accounting software saves. The way the computer is used influences the organization’s

performance and this can be related to reasons of security. It has been found that companies

52 | P a g e

using computers for accounting purposes have only higher performance compared to those

that do have other uses.

If the computer is being used for many purposes, computer viruses can easily attack it or just

become slower in operations due to the excessive of programs when many software fight for

the random access memory.

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6.0 Conclusions and Recommendations

6.1 Introduction

This chapter looks at the conclusion on the study, the implications and recommendations of

study which will be useful to Local Government Authority, as well as aid research on future

studies on the subject matter.

6.2 Conclusion

This study aimed at assessing the impact of computerized accounting system usage on

organization performance in Zambia with special focus in local government authorities

(LGA`s) in Lusaka Province. Specifically, this study intended to assess the level of usage of

computerized accounting system, assess organization performance and assess the challenges

encountered with the use of computerized accounting systems.

The study used mainly primary data from 30 respondents selected using purposive sampling

techniques.

All respondents surveyed in the LGAs use Computerized Accounting System. It was found

that about 43% reported that computerized accounting system requires training to staff which

is a challenge, the reason might be due to lack of time to undertake training and the costs that

come with the training . About 27% indicated that computerized accounting system caused

loss of data, 20% are challenged the additional costs, and about 10% reported that it resulted

into wrong data entry. The Researcher asked if there are any measures taken to solve these

challenges. The results indicated, about 62% of respondent reported that the organization is

taking measures to overcome these challenges. About 82% claim that simplification of CAS

will improve organization performance.

The finding that computerized accounting system necessitates training to staff which is a

challenge calls for the central government support in training workers regularly.

The researcher found results that indicate that Marital Status, Qualification of Staff,

Experience and Awareness, Training and Other Use are significant factors influencing

organisation performance in LGAs in Lusaka.

The outcomes of the study showed that computerized accounting systems have positive

impact on the performance of an organization. Computerized accounting systems in

accounting provide organized data management, and reduce on the turnaround time of an

organization.

54 | P a g e

The outcomes of the study showed that computerized accounting systems have positive

impact on the performance of an organization. Computerized accounting systems in

accounting provide organized data management, and reduce on the turnaround time of an

organization.

6.3 Implication

The information produced by assessing the impact of computerized accounting system usage

on organization performance, could be utilised to propose future exploration points or help

different specialists to choose actions that might be suitable for a specific subject zone of

examination study.

The finding that computerized accounting system necessitates training to staff which is a

challenge calls for the central government support in training workers regularly.

6.4 Recommendations

Following the presentation of the research findings as presented in chapter four, here are the

recommendations made by the study;

Training should be a continuous process to keep workers updated with new

technology so as to keep the organization performance growing.

Organizations should be keeping up to date with their workers on all the happenings

in information technology that touch accounting practices.

Youth employment should be considered and as get more experienced, high

organization performance is realised.

Government have to set policies, strategies and programs that will enable majority of

people get education. Education is a key to performance. The use of computerized

accounting systems for instance requires someone with computer knowledge and

accounting knowledge.

Security issues should be kept in touch with regard to CAS to avoid threat in an

organization.

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6.5 Limitation of the study

The most critical limitation of this study was the process of accepting the research to be done

at the Local Government As it was not easy, time schedule for the study, and unwillingness

of some part of respondents on questionnaires and interviews during data collection processes

regarding, assessing the impact of computerized accounting system usage on organization

performance in LGAs Lusaka Province.

6.6 Suggestions for further study

This study assessed the effect of computerized accounting system usage on organizational

performance in Zambia with special focus in local government authorities (LGA`s) in Lusaka

Province. A similar study may be conducted to focus with other Provinces.

56 | P a g e

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APPENDICES

Appendix I

Research Survey Questionnaire Dear respondent,

This questionnaire is designed for academic Assessing the Impact of computerised

Accounting System usage on organisation performance. LGA`S in Lusaka Province in

Zambia

Please do not write your name in the Questionnaire

SECTIION A

Tick where applicable

1. Please indicate your gender: Male [ ]

Female [ ]

2. Please indicate your marital status: Single [ ]

Married [ ]

Widowed [ ]

Separated [ ]

Divorced [ ]

3. Please indicate your age ………………..years.

4. Please indicate your academic Qualification the box below

1 2 3 4 5 6 7

Primary Secondary Certificate Tertiary/

Vocational

Training

eg.

TEVET

Diploma Advance

diploma/

Degree

Post

Graduate

(PGDs,

Masters,

PhDs,

Prof. etc)

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5. For how long have you been working in local government ………………….years.

Dear Respondent, the researcher is a student of Cavendish University, pursuing Bachelor of

Accountancy (BAC). The questionnaire was designed for academic purposes and for partial

fulfilment of the award of a Degree in Accounting. It is through your response that the work

can be completed well. Therefore, any information will be handled with maximum

confidentiality. Please spare a few minutes of your time to answer the following questions,

they mostly involve ticking a response in the space provided and a few filling in.

TITLE: Assessing the effect of using of Computerised Accounting System on

Organisational Performance in Zambia: Case Study on LGAs in Lusaka Province.

SECTION A

Computerised Accounting System

1. When was the organisation established?

1-5 years ago [ ]

6-10 years ago [ ]

More than 10 years [ ]

2. Does the organisation use computerised accounting system in its operations?

Yes [ ]

No [ ]

3. If yes move to question 8

4. If no, how does the organisation capture its operations, especially in the preparation of

financial statements?

Manually [ ]

Microsoft tool [ ]

Other specify [ ]

5. Has your organisation ever considered using Computerised Accounting Systems

(CAS)?

Yes [ ]

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No [ ]

6. Which factors prevented or are preventing your adoption of Computerised

Accounting Systems (CAS)?

Initial Capital [ ]

Employees expertise in IT [ ]

Security features [ ]

7. Benefits of the Manual Accounting systems

Excellent Very Good Good

Timely Information [ ] [ ] [ ]

Cost of Savings [ ] [ ] [ ]

Effective Communication [ ] [ ] [ ]

Security of Information [ ] [ ] [ ]

8. Which of these computerised accounting systems is in use by the organisation?

Pastel [ ]

EPCOR [ ]

Ms excel [ ]

9. Please rate the performance of the organisation from 1-10.

10. When did the LGA computerised accounting system Used effectively?

1-5 years ago [ ]

6-10 years ago [ ]

More than 10 years [ ]

11. What computerised accounting software package is used in the LGA?

EXCEL [ ]

EPICOR [ ]

Pastel [ ]

12. What factors are considered in choosing the above accounting software?

Initial cost of installation [ ]

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Cost of training [ ]

Acceptance by users [ ]

13. To what extent does the organisation use the accounting software package selected

above?

Great extent [ ]

Moderate extent [ ]

Some extent [ ]

Question 14 – 16

Use a scale of 1-5 where

1 = Strongly Agree

2 = Agree

3 = Neutral

4 = Disagree

5 = Strongly Disagree

14. How does your organisation assess the level of computerised accounting system

usage on organisation performance?

Improvement of staff on CAS [ ]

Availability of quality report [ ]

Financial statements [ ]

15. To what extent do you agree that your choice of computerised accounting system

evaluate the performance of the organisation by the following factor?

The need to facilitate financial Management [ ]

The positive impact of CA on LGAs Performance [ ]

The need to improve quality of reports [ ]

16. To what extent do you agree to the relationship between computerised accounting

system and organisation performance?

Improvement of performance of accounting records [ ]

Time and costing saving in processing books of Accounts [ ]

Management relationship in adoption of CAS [ ]

17. In case your organisation is using manual accounting system which factors prevented

or is preventing your adoption of computerised accounting systems (CAS)?

Initial Capital [ ]

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Maintenance cost [ ]

SECTION B

COMPUTERISED ACCOUNTING SYTSEMS SECURITY

18. Are training programs organised for the accounting staff on how to operate these

software packages?

Yes [ ]

No [ ]

19. If Yes, How often does this training take place?

Monthly [ ]

Quarterly [ ]

Semi-annually [ ]

Yearly [ ]

Other please specify……………………………………………………….

20. Who has access to the use of the accounting software?

Only the authorised users [ ]

All the organisation’s staff [ ]

Others please specify…………………………………………..

21. Is the computer on which the accounting software installed used for any other

purposes apart from processing accounting data?

Yes [ ]

No [ ]

Thank you for your time

God Bless You!

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Appendix II

Interview Questions

1. Which accounting system does your organisation use?

2. What is your level of awareness on computerised accounting system usage?

3. What is your level of experience on computerised accounting system?

4. How many times do you use computerised accounting system?

5. Has the computerised accounting system adoption helped in improvement of organisation

performance?

6. Has the adoption of computerised accounting system helped to improve the accuracy of

accounting records in organisation?

7. How has the cost saving and time in organisation performance contributed by

computerised accounting?

8. Has loss of data obtained through theft, fire, human error caused by adoption of

computerised accounting system?

9. Is there any measures taken by your organisation to overcome challenges faced by

adoption of computerised accounting system for organisation performance?

10. Does the use of computerized accounting systems need extra training for staff members?

11. Has computerised accounting system usage resulted to availability of wrong date entry?

12. Has the use of computerised accounting system contributed to additional cost?

13. Has computerised accounting system usage have necessitate additional to staff member to

have training?

14. Are the measures mentioned above helping your organisation to overcome the

challenges?

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Appendix II

Tables Used in Descriptive Analysis

Gender of respondents

Gender rate Frequency Percentage (%)

Male

Female

19

11

63

37

Total 30 100%

Marital Status

Marital Rate Frequency Percentage (%)

Single

Married

Widow

Separated

Divorced

8

14

2

3

3

27

46

7

10

10

Total 30 100%

Age of Responders

Age Frequency Percentage (%)

20 – 29

30-39

40-49

50 and above

5

15

7

3

17

50

23

10

Total 30 100%

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Academic Qualification

Education Frequency Percentage (%)

Primary

Secondary

Certificate

Tertiary

Diploma

Degree

Post graduate

0

0

0

1

2

24

3

0

0

0

3

7

80

10

Total 30 100%

Work Experience

Number in years Frequency Percentage (%)

0 - 5

5 -10

10 - 15

15 and above

7

13

3

2

28

52

12

8

Total 30 100%

Establishment of organisation

Number in years Frequency Percentage (%)

1 - 5

6 -10

More than 10 years

0

0

30

0

0

100

Total 30 100%

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Use computerised accounting system in its operations

Valid Frequency Percentage (%)

Yes

No

27

3

90

10

Total 30 100%

Level of Usage

Detail Frequency Percentage %

Pastel

Excel

EPCOR

23

7

0

77

23

0

Total 30 100%

Times Used CAS

Detail Frequency Percentage %

Daily

Often

Few Times

16

8

6

53

27

20

Total 30 100%

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Rating the Performance

Details Frequency Percentage %

1

2

3

4

5

6

7

8

9

10

0

0

0

3

11

7

4

3

2

0

0

0

0

10

37

23

13

10

7

0

Total 30 100%

Factors considered in choosing the accounting software

Detail Frequency Percentage %

Cost of training

Initial cost of installation

Acceptance by users

18

7

5

60

23

17

Total 30 100%

The extent to which the organisation use the accounting software

Detail Frequency Percentage %

Great extent

Moderate extent

Some extent

8

17

5

27

56

17

Total 30 100%

71 | P a g e

Training programs on how to operate the Software Packages

Detail Frequency Percentage %

Yes

No

23

7

77

23

Total 30 100%

How often does this training take place?

Detail Frequency Percentage %

Monthly

Quarterly

Semi-Annually

Yearly

Other

0

0

7

20

3

0

0

23

67

10

Total 30 100%

Who has access to the use of the accounting software?

Detail Frequency Percentage %

Only the authorised users

All the organisation’s staff

Others please specify

29

1

0

97

3

0

Total 30 100%

Is the computer on which the accounting software installed used for any other

purposes?

Detail Frequency Percentage %

Yes

No

18

12

60

40

Total 30 100%

72 | P a g e

Awareness of Computerised Accounting System

Awareness Frequency Percentage (%)

Not Aware

Aware

3

27

10

90

Total 30 100%

Challenges Encountered

Details Frequency Percentage %

Training to staff

Loss of Data

Additional cost

Wrong Data entry

13

8

6

3

43

27

20

10

Total 30 100%

Does the usage of CAS increases organization performance?

Valid Frequency Percentage (%)

Yes

No

26

4

87

13

Total 30 100%