COMPUTERIZED ACCOUNTING SYSTEMS AND FINANCIAL REPORTING. A CASE OF NATIONAL WATER AND SEWERAGE CORPORATION, MBALE BRANCH.
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Date
2024-08-28
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Abstract
The study investigated the influence of computerized accounting systems on financial reporting at National Water and Sewerage Corporation (NWSC) Mbale Branch, utilizing a sample size of 40 respondents determined using the Solvane formula of 1960. The study aimed to evaluate the effects of Tally, Transaction Processing Systems (TPS), and systems security on financial reporting accuracy and efficiency. Findings revealed significant insights into each area. The effect of Tally on financial reporting was notably positive, with 86.1% of respondents reporting improved timeliness and accuracy of financial data due to real-time updates and automation, which reduced human errors. However, while a majority recognized these improvements, 47.3% expressed reservations about operational efficiency, and 58.3% appreciated the standardized reporting formats. The examination of Transaction Processing Systems showed a positive impact on data entry efficiency and transaction accuracy, with 69.5% acknowledging improved efficiency and 77.8% noting reduced errors. Timeliness in financial reporting was enhanced for 80.5% of respondents. Despite these advancements, 25% disagreed about operational efficiency, and 36.1% expressed skepticism about regulatory compliance. Systems security was found to be crucial, with 61.1% of respondents acknowledging its role in maintaining data integrity and protecting against unauthorized access. However, there was some skepticism about its effectiveness in protecting against cyber threats, with 22.2% expressing doubts, and only 33.3% felt confident about confidentiality measures. Compliance with data protection regulations was affirmed by 47.3% of respondents, but 25% strongly disagreed, indicating a need for better communication and training. The study concluded that while computerized accounting systems had generally improved financial reporting at NWSC Mbale Branch, further refinements and additional training were needed. Recommendations included addressing gaps in Tally’s operational efficiency, enhancing TPS training programs, and improving systems security protocols to better safeguard financial data and ensure regulatory compliance.