Abstract

This study evaluates the Effects of Information Communication Technology on Accounting Practices. Specifically how ICT helps in the preparation of financial statements and how it helps to  present accounting information on time . The research instrument employed in this study is a closed ended structured questionnaire administered to the staff members of the selected firms.

The data collected are analyzed using Pearson’s correlation statistical tool to test whether there is a significant linear relationship between Information Communication Technology and  accounting practices. The statistical package for social science (SPSS) was employed for the data analysis.

The result generated from the study indicates that ICT has a significant effect on preparation of financial statements and on time presentation of accounting information.

The study concluded that ICT has a positive and strong relationship with accounting practices which are the preparation of financial statements and timely preparation of accounting information in Buea Municipality.

CHAPTER ONE

INTRODUCTION

1.1 Background of the study

In the past, most recordings of accounting information were done manually. Recently they have brought in the use of Information Communication Technology (ICT) such as the accounting software sage 100 and QuickBooks which has made it easier to carry out accounting practice Granlund & Mouritsen (2017).

Terry (2019) from his research found out that there are both positive and negative impacts of ICT on accounting profession. Okolie and Arowoshegbe (2020) concluded that there is urgent need for effective training and retraining of practicing Accountants. Gasper (2018) suggests a tendency for change of accounting practices from manual to computerized accounting systems. Sanusi (2017) observed that no meaningful progress will be made in educational sector without adjusting to technological (scientific) innovations and discoveries. Babalola (2018) concludes that the level of economic, social and political development of any country usually determines the accounting needs of that country.

Since the inception of information and communication technology (ICT), accountants can now process large amount of financial information quickly through computerized accounting system Reed (2020). The accountant only needs to enter the transactions in to the software of the computerized accounting system which will perform the calculation and presentation . Any company with large size seeking to be effective and efficient in its financial operations would need to adopt automated system of accounting  Kojo (2018).

Public accountants have increased the number of services offered to clients such as online accounting and bookkeeping services, advisory services on selecting and implementing accounting information systems and accounting data entry services Banker (2018).

The usage of Information communication technology has been a challenge to some users and companies, this is due to constant evolution of technologies and new things coming up daily. The challenge is that of language as well as technicality of the computer software Taiwo (2019).

In recent times, the usage of computers and other advance technology have increasingly been adopted in accounting practices, daily records and preparation of financial statements that where done manually are now done using accounting software’s Linus (2012). According to Lim(2018) implication of information communication technology has caused obvious changes in the organization’s accounting system. Records can be kept and tracked more effectively with the use of computerized system increasing company’s efficiency and minimizing errors to ensure customer satisfaction.

So far, information communication technology has improved corporate relationship, facilitate speed and enhance quality delivery in accounting practices Abbas (2017). It is necessary to acknowledge that computerized system has improve the functionality of accounting practices in the organization.

Jaiyeola (2018) examined information communication technology as a tool for effective performance of chartered accountants and noted that , with the automation of corporate process which reduces paper work, the 21st century accountants are confronted with enormous challenge either as financial accountants, management accountants  or consultants.

Yeboah (2016) investigated information systems and accounting practices in Ghanaian public institutions and findings identify timely delivery of financial statement while lack of ICT expertise, sustainability and cost of accounting software and data security constitute major challenges to the adoption of ICT.

1.2 Problem Statement

In the past, manual accounting practices were used. This system was crude an exhaustive to users, it was also time consuming and could not yield readily available results. As a result, accounting data could not be timely provided for decision making. So, the setback of manual accounting system gave rise to the introduction of Information communication technology to help ease the process of recording and reporting financial statements to end users Abiola (2019). Also, another major challenge faced with the implementation of Information Communication Technology is the Garbage in Garbage out. This means that any error on transactions entered by the accountant into the system will falsely influence the result, so in order to produce a good financial statement using a computerized system; all information must be entered correctly.

In this study, the researcher seeks to find out how the introduction of information communication technology has affected accounting practices.

1.3 Research Questions

This, therefore, made the researcher to come up with the following research questions

Main Question

What are the effects of information communication technology on accounting practices?

Specific Questions

1. How does the use of ICT help in the preparation of financial Statements?
2. Does the application of ICT help to prepare and present accounting information on time?

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