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THE IMPACT OF COMPUTER TECHNOLOGY ON ACCOUNTING

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THE IMPACT OF COMPUTER TECHNOLOGY ON ACCOUNTING

ABSTRACT
Computer can be defined as an electronic device that is capable of accepting data, processing data and displaying the information. It can also be regarded as an automatic machine for processing information.  The introduction of computer has brought efficient services to mankind, with people having to do less work.  Therefore, it is important for one to become computer literate so as to be able to fit into the changes brought about by the computer technology for an improved standard of living with less stress.  The high rate of computer illiterates prompted the researcher to venture into great research work.  Though survey, and historical research methods were used for the collection of primary data, personal observations were employed in order to enhance the researcher results by limiting the possible errors.It also enables the researcher to assess population sample size, attitude of respondents, existing literatures on subject matters.  However, personal interview conducted by the researcher on the personnel manager, heads of the computerization departments and the union leaders shows that only four employees out of three hundred and twenty two people were retrenched as a result of introduction of computer to business.  Computers have great impact on the profession of accounting, with the rapid growth of technology there is no doubt that computers will become a common asset in all profession.

TABLE OF CONTENTS

Chapter one

1.0      Introduction                      

1.1      Background of the study     

1.2      Statement of the Problem   

1.3      Objectives of the study       

1.4      Significance of the study     

1.5      Scope and limitations of the study

1.6      Research Questions                   

1.7      Definition of Terms                    

Chapter two

2.0      Literature Review  

2.1  Some Applications of Computer Technology in Nigeria             

2.2      Implications of Technological changes on Employees        

2.3      Union Response to the Technological Changes   

2.4      Implication to Technological change on Employees           

2.5      Specific Implications of computer application to employment   

Chapter Three

3.0      Research Methodology

3.1  Research Methodology Used 

3.2      Description of Respondents 

3.3      Determination of Sample Size     

3.4      Sources of Data                 

3.5      Methods of Investigation            

Chapter Four

4.0      Presentation, Analysis and Interpretation of Data

4.1  Data Analysis

4.2  Testing of Hypothesis

4.3  Interpretation      

Chapter Five

5.0      Summary of findings, conclusion and recommendation

5.1  Summary of Findings   

5.2      Conclusion                  

5.3      Recommendations       

Bibliography

Appendix

CHAPTER ONE

1.0     INTRODUCTION

1.1  BACKGROUND OF THE STUDY

Days are gone when most accounting operations and decisions that have to be made on or from them are on first hand basis. This is because accounting operators and decision makers are in close contact with such accounting operations and as such, collected, analysed and interpreted data from such operations for decision making.   With the introduction of computer to many business applications, those business areas that involve repeated tasks which are often monotonous and fallible to human errors (cash, inventory control, payroll and etc) are increasingly being simplified accurately by combining the cost, effectiveness, simplicity of use, efficiency, reliability and accuracy of the computer to obtain, analyze and interpret data information for efficient business decisions. Though the introduction of computer to many facets of business operations is a welcome idea, its use is further implicated on accounting system and as such organisations need to strike a balance between accounting areas to be manually operated so as to control or limit the menace associated with unemployment.

Some of the business operations to which computer has been successfully introduced:

-                     Printing graphic designs of complicated nature.

-                     Payroll system.

-                     Billing system.

-                     Predict election result.

-                     Mark examination results such as JAMB and WAEC.

-                     Control inventories.

-                     Predict performance of an aircraft or missile still.

-                     To calculate the critical path of most efficient assignment of troops or problems and so on.

It therefore becomes important that technological changes such as the introduction of computers in organizations be carefully evaluated so that the gains in technical efficiency are not made at the expense of the well-being and integration of employees.

 In the circumstances, then a study of the implication of computer introduction to accounting system of business operations is not only timely but mandatory so as to avoid some of the problems associated with technological changes in organizations.

Historical Development of Computer

Nature has endowed man with the spirit of inquisitive that is searching to know about certain phenomenon surrounds him and his environment. One of the major problems is of counting.  Trying to solve this problems, man invented the use of what is refined today as computer.

For clear understanding we are going to divide it into two basic forms.

1.          Early Aids to counting

2.          The Fingers and toes

The early man uses its fingers and toes in trying to solve basic mathematical problem of adding, subtracting and dividing etc facing him with it environment.

B.    Stones

The primitive man also uses piles of stone in replacement of finger and toes application in trying to solve problems of accounting. This man gathered stones of various colours and small sizes in trying to  solve basic mathematical problems.

c.    Abacus

A man called Abacus invented a manual machines or device for mathematical solution known as Abacus. This manual machine was made in a rectangle structure which was attach with a strings of wires on the bead. Now by moving the bead back and front along the wires, numbers could be added and subtracted.

2.    Modern Mechanical Aid to Counting

In not less than hundreds of years manually application was involved, until the modern scientist came up with a new device known as calculator.

A French man known as Blaise Pascal invented the first mechanical machine which could support addition and subtraction, division etc in the year 1642.  The machine has  a number of wheels with the teeth on tens, the third works with hundreds, and so on.  For clear understanding of this machine note that any time the first wheel made one complete turn, the second wheel moved one position forward.

In further attempt of the search for a more reliably means of computations, a Cambridge university mathematics professor Charles Babbage in the year 1812 developed what is known as difference engine and it application was greater in mathematical tables.

This therefore mark a significance change to our today’s modern digital computer.

       Dr. Herman Halleraith was American statistician at the United State Census Bereau in 1890, he developed what was known as Hollerith machines. He used his machine to process the information obtained in the census of the population carried out in the United State of America in 1890. In the year 1946 John Von Neuman set out the world classic design for a modern digital computer.,  all these gave birth to what is now called modern digital computer.

1.2  STATEMENT OF THE PROBLEM

The importance of personnel in the accounting section of an organization cannot be over emphasized especially when one remembers the facts that these personnel support the organization.

1.3  OBJECTIVES OF THE STUDY

The purpose of this research work is to find out and evaluate the implication of computer introduction to Accounting sections of business operation in Nigeria Today.  To find out whether the introduction of computer has made the accountant job easier. The study will also attempt to find out the efficiency and effectiveness of such application to overall management capabilities in decision making.

1.4  SIGNIFICANCE OF THE STUDY

This research work provides a clear understanding of one of the social implications of computer application on accounting system. The information obtained will be useful to management, consultants, about unions, professional, students, shareholders, investors, institute of higher learning, training managers, economist, the government and so on.

1.6  RESEARCH QUESTIONS

The following research questions form the basic postulate of the study:-

1.          Has computer introduction any impact on accounting system?

2.          Has computer introduction made the accountant’s job easier?

3.          Has computer introduction provided more accounting information with same staff?

4.          Has computer introduction made the storing and retrieval of accounting information faster.

5.          Has computer introduction made the accountant more efficient?

1.7  DEFINITION OF TERMS

The purpose of this section is to give conceptual clarification of terms within the scope and limitation of the study so as to avoid ambiguity of concepts used.

Data –    Coded information i.e. information that has

been captured for processing or recorded in any way

E.D.P. – Electronic Data Processing.

Program – A list of instructions which is to be

followed by a computer to solve a given problem.

Input – The process of entering data into computer.

Output – The section of the computer needed to

take result out of computer.

Software – Generic term applied to most non

physical aspects of computing i.e. programs, operating systems, packages, compilers and to some extent, systems in general.

Computer – A unique, sophisticated magnated


machine which has been carefully put together in such a careful manner that enables it to manipulate or handle any given task, be it in Engineering, science, business etc.

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