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Download the complete Accounting project topic and material (chapter 1-5) titled A COMPARATIVE ANALYSIS OF COMPUTERIZED ACCOUNTING SYSTEM AND MANUAL ACCOUNTING SYSTEM  here on PROJECTS.ng. See below for the abstract, table of contents, list of figures, list of tables, list of appendices, list of abbreviations and chapter one. Click the DOWNLOAD NOW button to get the complete project work instantly.

 

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Download the complete Accounting project topic and material (chapter 1-5) titled A COMPARATIVE ANALYSIS OF COMPUTERIZED ACCOUNTING SYSTEM AND MANUAL ACCOUNTING SYSTEM  here on PROJECTS.ng. See below for the abstract, table of contents, list of figures, list of tables, list of appendices, list of abbreviations and chapter one. Click the DOWNLOAD NOW button to get the complete project work instantly.

 

PROJECT TOPIC AND MATERIAL ON A COMPARATIVE ANALYSIS OF COMPUTERIZED ACCOUNTING SYSTEM AND MANUAL ACCOUNTING SYSTEM

The Project File Details

  • Name: A COMPARATIVE ANALYSIS OF COMPUTERIZED ACCOUNTING SYSTEM AND MANUAL ACCOUNTING SYSTEM
  • Type: PDF and MS Word (DOC)
  • Size: [666 KB]
  • Length: [93] Pages

 

ABSTRACT

This research study is a comparative analysis of computerized accounting system and manual accounting system with reference to Ama breweries plc. and African petroleum plc. all in Enugu state. It is a survey research. The study is a comparative evaluation of computerized accounting system and manual accounting system to ascertain which one is more effective and efficient than the other. Data were collected from primary and secondary sources which include the use of questionnaires, personal observations, text books, journals and internet. Three hypotheses were formulated and tested using Z-test statistics, while questionnaires were analyzed in tabular form using simple percentage. It was discovered that software accounting system is expensive to run, software accounting system handles larger volume of data than manual accounting system and software accounting system encourages fraud, and funds can be lost in organization with the use of software accounting system. As a result of the comparison between manual accounting system and computerized accounting system, to attain a larger volume of data and work accuracy in a shorter period it is better for organizations to use computerized accounting system to increase their efficiency. Those studying accounting as a profession should be introduced to both the theoretical and practical aspect of software accounting and to reduce funds lost through frauds and forgeries managers and accountants should provide software developers with progressive information relating to their business activities.

TABLE OF CONTENTS

Approval page ii Certification iii Dedication iv Acknowledgement v Abstract vii

CHAPTER ONE: INTRODUCTION 1.1 Background of the study 1 1.2 Statement of problem 4 1.3 Objective of study 5 1.4 Research questions 6 1.5 Research hypotheses 6 1.6 Significance of the study 7 1.7 Scope of the study 8 1.8 Companies Profile 8 1.9 Limitation of the study 9 1.10 Definition of terms 10 CHAPTER TWO: REVIEW OF RELATED LITERATURE 2.1 Evolution of accounting 12 2.2 Stages in evolution of accounting 17 2.3 Purpose of accounting information 18 2.4 Classification and storing data in an accounting environment 20 2.5 Accounting in the manual system environment 21 2.6 The nature of integrated accounting software system 22
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2.7 Checklist for selecting accounting systems 24 2.8 Basic requirement of software accounting data 25 2.9 Advantages of using accounting software systems 28 2.10 Disadvantages of software accounting system 29 2.11 Comparison between manual Accounting system and Software accounting system 31 2.12 Effect of software accounting system on customers 33 2.13 Effect of software accounting system on organization performance 33

CHAPTER THREE: RESEARCH METHODLOGY 3.1 Research design 36 3.2 Sources of data 37 3.3 Area of the study 38 3.4 Population of the study 38 3.5 Determination of the sample size and sampling technique 39 3.6 Validity and reliability test of the instrument 40 3.7 Method of data collection 41 3.8 Techniques for data analysis 41 3.9 Decision criterion for validation of Hypothesis 43

CHAPTER FOUR: PRESENTATION OF DATA, INTERPRETATION AND ANALYSIS OF DATA 4.1 Presentation of data 44 4.2 Test of hypotheses 57 4.3 Discussion of findings 72
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CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS 5.1 Summary of findings 73 5.2 Conclusion 74 5.3 Recommendations 74 Bibliography 76 Appendix 1 78 Appendix 2 79

CHAPTER ONE

INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Accounting system according to an Italian monk, Luca Pacioli (1491), is the
combination of personnel records and procedures that a business uses to meet its
need for financial data. Financial accounting also encompasses the summary of
information and presentation of periodic reports such as profit and loss statement
and balance sheet. The historical firms of accounting were of different degree of
sophistication according to the need and techniques of the time. This is why
modern accounting is based on the double entry system and the recognition of the
dual nature of each transaction and this gives a co-ordinate support for the control
of all the transaction of a business.
Accounting system according to business dictionary is an organized set of
manual and computerized accounting methods, procedures and controls established
to gather, record, classify, analyze, summarize, interpret and present accurate and
timely financial data for management decisions.
In spite of this, there are policies for reporting on an organization
performance and current conditions. These policies increase the usefulness of
report including their reliability and comparability. The policy that makes up
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acceptable accounting practices are determined by many individuals and groups
and those policies are referred to as generally accepted accounting principles
(GAAP). Since accounting is a service activity, these rules reflect our society’s
needs and not only on those of accountants. The financial Accounting standard
Board (FASB) is another body or group that is seen as an independent group of
seven full-time members with a large staff. This body has issued six statements of
accounting concepts which help in guiding accounting standard setting. Many
companies and organizations involve themselves in setting accounting
rules/policies. They include investors, government agencies, politicians, unions,
lenders and other business and non-business organizations.
Furthermore, there are two major types of methods used in recording
accounting information, such methods are manual accounting system and software
accounting system or computerized accounting system.
Manual accounting system extends and includes the method of processing,
recording, journalizing transactions posting to the ledgers and preparing the
financial statements which provide decision makers with useful information in
making decisions. These decisions relate to the allocation and use of scarce
economic resources such as money, land, labour and capital. These manual
accounting systems are wholly used for preparing income tax returns, reports to
managers, bills to customers and other forms of providing accounting information.
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In addition, with manual accounting system, accountants and managers
usually inspect the documents, journal ledgers and reports in the performance of
testing and verification. Transaction can be traced from source documents to
journals, general ledgers, printed report etc. Subsidiary ledgers can be posted and
the total can be compared with control accounts. It is visually observed by the
auditors or accountants to determine whether proper books of accounts or is being
followed.
Technology is a main part of our modern society and business practices. It
also plays a major important in accounting as it help in reducing the time, effort
and cost of record keeping while improving clerical accuracy. Technology has
distinct the way we store, process and summarize large masses of data which
makes accounting free to increase its field.
The origin of software could be dated back to early 1960s. Historically,
emphasis in computer industry was on programming and was seen as the biggest
single problem in the implementation of a computer system. Computer has the
ability to add and subtract, but frequently not to multiply or divide, the computer
run with relatively simple software routines.
However, this study tends to analyze the comparison between manual
accounting and software accounting which are the two types of accounting system
used by various organizations and companies.
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1.2 STATEMENT OF THE PROBLEM
In recent times, most companies and organizations have been using the
manual form of operations in their accounting systems. Primarily, this manual
accounting systems used to meet the organizational information requirement but
this has been on consistent failure in recent times as a result of growth and
diversification of business and technological advancement complexities in
information technology to meet the current business demands.
Thus, companies and organizations had usually been faced with a number of
problems in the use of this manual accounting system which involve lack of ability
to handle sufficient volume of data in terms of speed and accuracy, insufficient
data storage and retrieval system often resulting in loss of vital records,
incorporating final updates, rampant report of frauds and forgeries in the use of the
system, unseemliness of information which implies that information needed for
effective decision making . This is repeatedly, as a result of poor retrieval and
inability to collect large volume of data within the required time. All these
problems include consequence in great loss of scarce resources and impeded
organization growth, steadiness and advancement.
Hence, in attendance to affect these problems related with the manual
accounting system and substitute it with the development of an integrated
accounting software system where financial and non-financial accounting
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transaction are recorded, analyzed, retrieved, reported, interpreted, summarized
and processed.
1.3 OBJECTIVE OF THE STUDY
The main objective of this study is a comparative analysis of software
accounting system and manual accounting system.
The study aims at ascertaining the following objectives:
1. To evaluate whether frauds and forgeries are encourage in computerized
accounting system i.e. software accounting system than the manual accounting
system.
2. To examine whether software accounting system can handle large volume of
data than the manual accounting system.
3. To study whether the use of software accounting system increases
effectiveness and efficiency in organizations or companies than manual accounting
system in reducing the amount of funds lost through frauds and forgeries.
4. To examine whether software accounting system is capable of storing,
retrieving, analyzing, processing, summarizing and reporting rapidly than manual
accounting system.
5. To show the operational and reporting system in both the manual accounting
system and software accounting system.
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1.4 RESEARCH QUESTION
The course of this research has picked up some interesting enquires and
discussions which centered more on a comparative analysis of software accounting
and manual accounting system in two companies Nigeria Breweries Plc. and
Africa Petroleum Plc in Enugu State.
The following questions are put forward for the purpose of the study:
i. What are the measures taken to ascertain the extent to which fraud and
forgery can be prevented and controlled using either of the accounting
system?
ii. Can software accounting system handle large volume of data more than the
manual accounting system?
iii. How effective and efficient is the use of software accounting system or
manual accounting system?

1.5 RESEARCH HYPOTHESES
Here the following hypotheses were formulated, tested and validated in the
study.
Hypothesis One
H0: frauds and forgeries are not encouraged with the use of software accounting
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system than manual accounting system.
H1: frauds and forgeries are encouraged with the use of software accounting
system than manual accounting system.
Hypothesis Two
H0: Software accounting system is not able to handle large volume of data than the
manual accounting system.
H1: Software accounting system is able to handle large volume data than the
manual accounting system.
Hypothesis Three
H0: Manual accounting system is not effective and efficient than the software
accounting system in reducing the amount of funds lost frauds and forgeries.
H1: Manual accounting system is more effective and efficient than the software
accounting system in reducing the amount of fund lost through frauds and
forgeries.

1.6 SIGNIFICANCE OF THE STUDY
This study has a lot of significance to the educational system and industrial
environments.
1. It impart hold knowledge to the general public who may not have the
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opportunity of reading some relevant test on software accounting system as well as
manual accounting system.
2. It creates new initiative in information expertise sub-sector.
3. Non-computer experts with little or no assistance will be exposed and
encourage through this study.
4. It provides important literature for other researchers.
5. It will promote productivity, efficiency and effectiveness in industries since
users satisfaction is assured as well as error free and speeding reporting system.

1.7 SCOPE OF THE STUDY
The coverage of this study is limited to the study of a comparative analysis
of software accounting system and manual accounting system of which particular
attention is given using two companies in Enugu as study. These companies are
Nigeria breweries PLC (Enugu), African Petroleum PLC (Enugu).

1.8 COMPANIES PROFILE
NIGERIA BREWERIES PLC
Nigeria Breweries Plc. was incorporated on November 6th, 1996 as Nigeria
Breweries limited and was first commissioned in Lagos on 2nd June 1949, while
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other branches were established such as Aba branch in 1957, Kaduna 1963, Ibadan
in 1982 and Enugu in 1995.
AFRICAN PETROLEUM PLC
The history of African petroleum Plc. dates back to 1945 when the British
petroleum company limited bought up the assets of the Atlantic Refining Company
on the West Africa coast. In1964, AP Nigerian limited was incorporated in
Nigeria. As an associate of the world wide AP group, it marketed petroleum
throughout the federal Republic of Nigeria. In 1973, the company changed from a
private company to public company, when 40% of its shares were sold to Nigerian
citizens in compliance with provisions of Nigerian Enterprises promotion decree of
1977.

1.9 LIMITATION OF THE STUDY
There is no research work or study that is entirely hitch-free. During the
course of this study, a lot of problems prompted up. The main limitation of this
research work is time factor. The researcher had limited time with which he used in
completing the study. This also created a room for other problems and made data
collection a difficult task.
The problem of finance cannot be ruled out any research work of this entails
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typing, photocopying, transportation etc. The unavailability of material with which
to work with constituted the limitation of the research work.
The study is however limited to these companies. Nigeria Breweries Plc. 9th
mile Enugu metropolis, African Petroleum Plc. Presidential road, Enugu. As well
as the following financial areas: Such as general ledger, account payable, account
receivable, purchasing, inventory control and cash resources. The research will
also provide overall information on software such as peach tree accounting system
for windows implementation procedures involved.

1.9 DEFINITION OF TERMS
SYSTEM: It is an interrelated or interacting element organized into a complex
whole. A system is a group of interrelated components working together towards a
common goal by accepting inputs and producing outputs in an organized
transformation process.
SOFTWARE: It is a general term for the various kinds of programs used to
operate computers and related devices. Software is the programs and symbolic
languages that control the function of the hardware.
MANUAL ACCOUNTING SYSTEM: These are those system in which source
document are posted by hands which extends and includes method of processing,
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recording, journalizing transactions posting to the ledgers, sales, cash receipt and
other type of journals.
ACCOUNTING SYSTEM: It is an organized set of manual and computerized
accounting methods, procedures and controls established to gather, record, classify,
analyze, summarize, interpret and present accurate and timely financial data for
management decisions.
ACCOUNTING: It is a system for recording; classifying, measuring, interpreting
financial data for an organization to enable users make assessment and decision
making.
COMPUTERIZED ACCOUNTING: It is what businesses used to track their
financial information.
COMPUTERIZED ACCOUNTING SYSTEM: It is a system used by business
for recording their financial information. Every time a transaction happens, an
entry is made into the system.

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