IMPACT OF COMPUTERIZED ACCOUNTING SYSTEM ON EMPLOYMENT IN FINANCIAL INSTITUTIONS

CHAPTER ONE

1.1  BACKGROUND OF THE STUDY

Tanenbaum (2010) states that manual processing of accounting data is too slow, and labour intensive in the banking industry. The speed at which computers can get according data processed cannot be matched. Computerized accounting system provides a means for those firms to record, very high volume of transaction with the great speed and financial and prepare a wide range of detailed financial report. Computerized accounting system affects strongly on the accounting work and on the performance of banking industry the computers can handle the recording process able to spend more time analyzing, planning and controlling financial operations for management, this can provide a greater amount of analytical information for use in decision making. Pandey (2007) adds that management is also in a better position to monitor the financial performance of all segments of the organization because a computerized accounting system can produce a broad range of detailed reports at short interval. This is highly important for banks used as a study in this research (Diamond, First and ECO Bank Plc.) because of different branches located at different places. Thus, computerized systems avoid the time lost in correcting common errors. Computerized accounting system provides management with current accounting balance information since balance is posted as the transaction occur. However this various advantages mitigates the level of manpower employed in the financial institution.The research intends to investigate the impact of computerized accounting system on employment in financial institution

1.2  STATEMENT OF THE PROBLEM

The problem confronting this research is to determine the impact of computerized accounting system on employment in financial institution With a case study of eco bank plc.

1.3  RESEARCH QUESTIONS 

1  What is computerized accounting system 2  What is the impact of computerized accounting on employment in financial institution 3 What is the impact of computerized accounting on employment in Eco Bank

1.4 OBJECTIVE OF THE STUDY

1 To appraise the nature of computerized accounting system 2 To determine the impact of computerized accounting system on employment in financial institution 3 To determine the impact of computerized accounting system on employment in eco bank

1.5  SIGNIFICANCE OF THE STUDY

The research shall provide a detail analysis of computerized accounting system and its impact on employment in financial institution

1.6  STATEMENT OF HYPOTHESIS 

1  Ho Computerized accounting system is not applied in ecobank Hi Computerized accounting system is applied in ecobank 2  Ho Computerized accounting system is not significant in eco bank Hi Computerized accounting is significant in eco bank 3  Ho The impact of computerized accounting on employment in eco bank is low Hi The impact of computerized accounting on employment in eco bank is high.