USAGE OF COMPUTERISED ACCOUNTING SYSTEM IN MANUFACTURING ORGANISATIONS IN ONDO STATE

Abstract

This study assessed usage of computerized accounting system in manufacturing organizations in Ondo state. Specifically, the study determined the type, extent, benefits and challenges of computerized accounting system used by manufacturing organization in the state. The study adopted survey research design through which views and opinions of manufacturing business owners were sampled. The study employed purposive (manufacturing business owners) and simple random sampling techniques (manufacturing business) for selecting the participants for the study. Using Slovin’s equation to determine the sample size from the population of the study, 327 manufacturing business owners/managers were sampled. Research instrument used to gather information for this study was a well-structured questionnaire. Data obtained were analyzed using descriptive (Mean ranking tables, frequency tables and percentage tables). Result obtained showed that most business are sole proprietorship (65.9%) with majority established 6-15 years ago (57.9%), common computerised accounting system for record keeping in manufacturing organisations is single-entry computerised accounting system (54.9%) and most (59.8%) of the manufacturing organisations adopts daily sales/cash receipts system of computerised financial accounting system in their enterprise. Most manufacturing organisations in Ondo state very often use computerised accounting system on cash management procedures (48.1%). It was shown that the computerised accounting system is often used in the study area to prepare accounts receivables (64.8%), inventory management practices (47.3%) and prepare financial reports (66.7%). The study also revealed that computerised accounting system made business decision easier and quicker (53.4%) as well as helped in keeping accurate record and reduces multiple errors (48.1%). The prominent challenge facing manufacturing organisations in the study area is high cost of preparing financial statements (Mean = 3.53, SD = 1.13) and time constraints (Mean = 3.78, SD = 1.09). There was significant and positive relationship between extent and benefits of manufacturing organisation viii use of computerised accounting system (r = 0.719, p = 0.001) while there was significant and negative relationship between extent and challenges of manufacturing organisation use of computerised accounting system (r = -0.158, p = 0.047). Finally, the study recommended among others that the Federal Government should task manufacturing organisations to adopt computerized accounting system to improve the overall performance of manufacturing organisations in Ondo State.