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                                                                                                                           TOPIC

AN EVOLUTION OF THE IMPACT OF COMPUTERIZATION ON THE ACCOUNTING SYSTEM OF SMALL SCALE BUSINESS ORGANISATION (A CASE STUDY OF MODEL COMPUTERS COMPANY WARRI DELTA STATE) 

                                                                                                                        ABSTRACT

The development of accounting systems and the computerization of these systems in a small scale business environment is the main theme of this study. The researcher examined the issues involved by understanding the computerized accounting system of model computers company, Warri.

Based on the analysis of data for this study it was discovered that an effective and efficient operating environment is function of a good accounting system other things being equal. Similarity it was discovered that the introduction of computer and the development of accounting packages have revolutionized the accounting system of small scale business organisation.

Therefore the general conclusion drawn from this study is that a computerize accounting system is a basic paradigm for small scale business organisations.

LIST OF FIGURES

Fig. 4 – 1    Mcc organisation chart

Fig 5 – 1     Daceasy system interface

Fig 5 – 2     Customer module

Fig 5 – 3     Uendor module

Fig 5 – 4     Product module

Fig 5 – 5     General ledger module

Fig 5 – 7     Fixed asset module

Fig 5 – 8     Purchase order module

Fig 5 – 9     Invoicing module          

Fig 5 – 10   Financial module

Fig 5 – 11   Default layout of accounts

Fig 5 – 12   Chart of account

Fig 5 – 13   Model chart of accounts

Fig 5 – 14   Fixed assets list

Fig 5 – 15   Current trail balance

Fig 5 – 16   Current profit and loss financial report

Fig 5 – 17   Period balance sheet

TABLE OF CONTENT

CHAPTER ONE

          General Introduction                                            1

1. Background of the study                                               1
2. Statement of the problem                                     3
3. Objectives of the study                                         4
4. Significance of the study                                                5
5. The scope of the study                                         6
6. Research limitations                                             6
7. Definition of terms                                               7

CHAPTER TWO

Review of related literature                                  10

1. Introduction                                                         10
2. Accounting information system                           13
3. Computer technology and accounting                           19
4. Computer application for small business             27

Note                                                                     31

CHAPTER THREE

          Research methodology                                         34

1. Nature of the study                                              34
2. Sources of data                                                    34
3. Method of data presentation                                35

CHAPTER FOUR

          Model – A company presentation                        37

1. Historical background                                                   37
2. Organizational structures                                     38
3. The accounting system of model computers company 42

CHAPTER FIVE

          Dave presentation                                                44

1. Basic issues                                                                   44
2. Daceasy accounting package                                52
3. Computerization at MCC                                     54
4. Daceasy and basic accounting operations            54

CHAPTER SIX

Findings, summary and conclusion and recommendations

1. Findings                                                               96
2. Summary and conclusion                                     102
3. Recommendations                                                         103

BIBLIOGRAPHY                                                          108

CHAPTER ONE

GENERAL INTRODUCTION

1. BACKGROUND OF THE STUDY

An accounting system has been described as an integrated frame work within on entity (such as business firm) that employs physical resource (ie material, supplies, personnel, equipment, funds) to transform economical data into financial information for (a) conducting the firms operation and activities and (b) providing information concerning the entity to a variety of interested users.

An accounting system has all the elements or characteristics of a system such as inputs, processes, outputs, controls and feedback. Davis of al write that “system is the anatomy of accounting.” It domain comprises the entire financial dimensions of business operations, including the flow of financial intelligence throughout the organisation and beyond.

The objective of accounting system is to provide an integrated and accumulated information that should assist management in making decisions for the effective and efficient execution of the goals of the organisation. An accounting system should be able to identify, assemble, classify, record, and report an entity’s transactions and to maintain accountability for the related assets and liabilities. In order to accomplish these objectives, the system should have sufficient and appropriate methods and records.

The advents of this computer and the Manufacting of accounting software have revolutionized accounting operation, Davis et al writs that computer system owe much of their acceptance in business to the increased speed and efficiency that they provide for data processing and reporting. They went further to state that computer systems has increased the accuracy, efficiency and timeless of reporting which can be most helpful in improving the decision making activities of management.

Giving the present trend in technology as it affects accounting operations, it would be important to evaluate the impact of computerization the accounting system of small- scale businesses is critical to the success of the information system Nic sulliuan has called for a proper study and analysis before the adoption of computer technology.

Corroboration the view of Sulliuan, Massey 7 walled a caution signal by calling for the need to weigh the benefits and shortcomings inherent in adopting computer technology in the accounting system of small – scale businesses. Although this revolution in accounting practice represents a significant technological shift, the need for evaluating the relevance of computerization cannot be downplayed.

1. STATEMENT OF THE PROBLEM

The operation of accounting systems in small-scale business orga

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