THE USE OF COMPUTER IN RECORDING ACCOUNTING INFORMATION, PROBLEMS AND PROSPECTS (A STUDY OF BENDEL FEEDS AND FLOUR MILL, EWU, EDO STATE)

ABSTRACT

This  research  work  is  aimed  at  ascertaining  the  various  roles  played  by using  computer  in  recording  accounting  information  problems  andprospects  in  the  modern  business  world  using  Bendel  feed  and  flour  mill,Ewu,  Edo  state  as  a  case  study.  The  importance  of  using  computer  in recording  accounting  information  will  be  apparent  when  considering  the fact  from  the  data  that  is  gathered  in  the  course  of  this  work,  from  the related  literature  as  well  as,  from  interviews  and  discussions.  Also questionnaires  were  distributed  equally  and  collected  which  yielded  or revealed  that  the  use  of  computer  in  recording  accounting  information played  a  positive  role  in  initiating  computer  use  in  the  modern  business world. The information supplied by the Chief accountant in Bendel feed and flour  mill  Ewu,  Edo  state  contributed  to  the  success  of  the  exercise.  The statistical analysis that used in the study includes the hypothesis testing in which the questionnaire is analyzed under their related hypothesis and the use  of  chi-square  test  of  homogeneity.  It  was  also  discovered  that  it  is
  important  among  other  groups  of  professionals  needed  for  this implementation of the exercise. Therefore, they formed the pillar on which any successful establishment rests upon. We recommended that the use of computer in recording accounting information should be give a free hand in implementation  exercise  in  order  to  enhance  the  importance  of  the  use  of  computer in recoding accounting information.


 

 
CHAPTER ONE

1.0 INTRODUCTION
1.1       BACKGROUND OF STUDY

In this present world, individual, business men, firms and government have seen  the  effects  of  computer  in  the  area  of  recording  and  safe  keeping  of information,.

 However,  this  computer  cannot function  unless  the  day-to-day  business  activities are well documented and fed into it properly.
Every business set up has different levels of management and each of these levels of management needs information to enable them make decision on how the  objective  of  the  organization  can  be  achieved  likewise,  the government.

In Nigeria before the advent of computer, nearly all clerical works are, done by paper and pen. This gives rise to Mismanagement of stationeries.
 Errors and omissions in accounting enterprises Monotonous  work  and  tiredness  and  other,  associated  clerical problems.  But  since  the introduction  of  computer, problems  are minimized.  Therefore,  the  use  of  computer  in  recording  accounting information in this modern world cannot be over sighted. In the past, recording,  filing  and  safekeeping  of  information  was  known  as
“routine  clerical  work”  but  with  the  advent  of  sophisticated, electronic business machines it is now known as “data processing”.
Today, no business can survive without the use of computer especially, in  recording accounting information

  1.2 STATEMENT OF THE PROBLEMS


The problems of computerized accounting and computer are as follows:


    a. DATA/INFORMATION INPUT:“Garbage  in  garbage  out”  is  a  general  phenomenon  in computer.  Electronic computer  has  no  self-judgment  and as  such devoid  of  human  errors  becauseit’s what  you  feed  into  the computer  (input)  that  it  gives  out  (output).  For  example,  if  one feeds in wrong data into the computer, no matter how efficient the programming may be, wrong output will be the outcome because the computer has been misled.
    b. COMPUTER LANGUAGE:Computer has its own language and all data are programmed and written in this special language. Therefore, it required a lot of training without which computer will not make any meaning to the users.

    c. ENVIRONMENTAL CONDITIONS: Computer does not function effectively in a hot environment, for this reason it requires huge amount in installing air-conditions to enhance efficiency.
    d. COST: Small businesses cannot afford computer because it is costly to  buy  and  maintain  which  constitutes  a  bottleneck  in  getting correct  information  and  as  such,  the  small  businesses  cannot thrive in the present of the big ones.
    e. AWARENESS:Some individuals, business men, firms, and government are not fully aware or do not know about the importance, advantages,disadvantages, and in-depth problems/prospects study of the use of computer in keeping accounting records and information.
 1.3 OBJECTIVES OF THE STUDY 
  This  research  work  on  “The  us196e  of  computer  in  recording  accounting  information,  problems  and  prospects”  is  to  investigate  or  require  for  the  following:
  a. To make  known  the brief  history  of  computer,  understand  some important  components  of  the  computer,  advantages,  disadvantages,and importance to users that is individuals, business men, firms, and government as a part of awareness on computerized accounting.

  b. To make known to small scale businesses affordability of computer in that the cost of different types of computers that can help in recording accounting information and transactions are made known to them so that they could strive in the presence of the big businesses.
  c. To make  known  users  of  computer  in  recording  accounting information  to  know  how  to  keep  computer  running  in  a  perfect condition, the environment it’s to be kept in should be conducive an cool for effective and efficient performance of the computer system.
  d. To  make  known  to  users  of  computer  in  recording  accounting information  to  understand  that  there  are  languages  that  computer understand  and  use,  so  therefore  they  should  go  for  training  in  this languages to enable them communicate perfectly with the computers.
  e. To  make  known  to  the  users  of  computer  in  recording  accounting information to make sure that the data/information we want to input into the computer is correct, valid, trustworthy, and accurate so that when  we  need  back  those  information,  we  won’t  get  something  else from what we are looking for.
  1.4 RESEARCH QUESTIONS
  The following are some of the questions the researcher would like to find answer to in order for him to carry out the project effectively:
  a. What  made  individuals,  firms  and  government  adopt  computer system?
  b. What has been the effect of the use of computer on old and new staff?
  c. ‘‘Routine  clerical  work”  and  “Data  processing”  which  is  more economical?
  d. What  improvement  has  computer  made  to  the  general  accounting system in the firm and country?
  e. What are the problems that generate from the use of computer?
f. What are needed to make computer use effective?
  g. What effect has the use of computer in the labourmarket?
  h. In  modern  accounting,  can  computer  be  left  out  in  recording information?
  1.5 RESEARCH HYPOTHESIS
  The following hypothesis shall be treated in the coursed of carrying out this  research work
  1. HO:  There  is  no significant  relationship  between  the  electronic  data processing approach and the manual system approach.
        Hi: There  is  significant  relationship  between  the  electronic  data processing approach and the manual system approach.
  2. HO: Computer  has  no  positive  effect  in  recording  accounting information.
        Hi: Computer has positive effect in recording accounting information.
  3. HO:  Information  from  the  computer  is  not  always  correct,  reliable,  and accurate.
 Hi: Information  from  the  computer  is  always  correct,  reliable,  and  accurate.
  4. HO: Not all employees have access to programmed data.
 Hi: All employees have access to programmed data.
  5. HO: The use of compute has not cause unemployment.
 Hi: The use of compute has cause unemployment
  1.6 SIGNIFICANCE OF THE STUDY
  The  significance  of  this  study  cannot  be  over-emphasis  because  of  the nature  of  modern  day  organizations.  It  is  embarked  on  to  poultry the importance  of  computer  of  an  organization  with  peculiar  reference  to modern accounting system. These importances are stated down below:
i. The importance of this study is to make the accountants and the auditors realize  that  computer  should  not  see  as  an  enemy  but as  an  aid  to them and their business functions.
  ii. This  study  is  to help remove  the  in  concept concealed  by the  junior workers  that  computer  introduction  will  lead  to retrenchment  of workers  which  is  a fallacy  because  without  human  being,  computer cannot work or operate.
  iii. This  research  work  will  help disclose  the  benefits of  computerized accounting  system  with  the  understanding  that  if  the  third  world countries  like Nigeria  can  undertake  this  system,  they  can  compete with the advanced countries.
  iv. This will also help see accuracy and efficiency of work carried out as well as increased productivity.
  v.       This research work will also help other renders and researchers to widen their scope of knowledge academically, occupationally, socially and economically as a base for other research work.
  1.7 SCOPE, LIMITATIONS, AND DELIMITATIONS OF STUDY
  1.7.1 SCOPE OF THE STUDY
This  project  is  designed  to  cover  the  use  of  computer  in  recording accounting  information  by  individuals,  firms and  government.  But generally,  business  organizations  were  concentrated  upon  with  a  case study of Bendel feeds and flourmill, Edo state.
  However, particular attentions were to the following areas.
i. Application and use of computer in financial accounting.
  ii. The use of electronic computer in management decision making.
   The advantages derived in the use of computer.
 1.7.2    LIMITATIONS OF THE STUDY

 It is the researcher’s desire to carry out an elaborate research work on the selected  topic  for  accuracy,  reliability  and  efficiency.  Also  as  an indispensable data base for interested person or groups of persons. But the following difficulties brought limitation to be:
 I. LACKS OF COOPERATION FROM THE RESPONDENTS: The reluctance of the officers of the organization involved to attend to the researcher  limited the researcher in getting full details.
  ii. FINANCE: Inadequate finance was a core problem for the researcher  and this adversely delayed the progress of the work.

  iii. SECRECY: Some  information  needed  by  the  researcher  is  tagged “Confidential” and this limited him from getting the information.

  iv. TIME:The time available to complete and submit this research work is too short; as such the researcher is limited to elaborate research.