Computerized Accounting Systems and Financial Performance of Commercial Banks. A Case of Equity Bank Mukono Branch

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Date

2024-09-04

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Uganda Christian University

Abstract

As the intensity of computer use in commercial institutions greatly improved over the years, this has helped them to improve on their overall financial positions by promoting transparency, accountability and efficiency through faster capturing, processing and communication in information. However, despite the high levels of computerization in place, banks are still unable to deliver real time services to customers which result from high costs of employee training and programming procedures and installation of computer systems. The purpose of the study was to examine the effects of computerized accounting systems on the financial performance of commercial banks in Uganda. The study objectives were to identify the computerized accounting systems used by Equity bank Mukono Branch , to examine the effect of computerized accounting systems on the financial performance of Equity bank as well as to establish the relationship between computerized accounting systems and the financial performance of Equity bank. The study used a cross-sectional research design which was often used in assessing respondents' views towards the effects of computerized accounting systems on financial performance of commercial banks. The case study was Equity bank. The study results revealed that in spite of the costs and system failures, computerization of accounting systems has a positive significance on the performance of Equity bank. These positive impacts include reliability and regularity of reports produced quality information and improved service delivery. Findings further revealed that computerized accounting systems lead to a considerable change in reduction of errors hence attaining accuracy, increased business capacity and improved efficiency in terms of service delivery. The researcher recommends that accounting systems should be more implementation and use of computerized accounting systems to a greater extent and there should be proper training of bank staff on modern basic skills in computers and management principles.

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Undergraduate research

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