Abstract

Many firms now consider the use of the computer software as a means of improving their business transactions. In spite ofthe advantages of accounting software, several banks seem not to have invested in it significantly. The objective of this study is to determine the role of Accounting Software on the Effectiveness of banks in Cameroon.

Specifically, the study seeks to identify the extent to which accounting software is connected with minimizing the time spent in carrying out banking transactions, an increase in the effectiveness of accounting information improved efficiency and accuracy of banking operations in Cameroon.

It uses the UNICS PLC as case study while employing the survey research design. The results of the study show that accounting software is positively and significantly connected with minimizing the time spent in carrying out banking transactions, an increase in the effectiveness of accounting information, improved efficiency as well as accuracy of banking operation. This study recommends an optimal usage of accounting software by Cameroon banks to boost their operations and improve service rendition to their customers.

CHAPTER ONE

INTRODUCTION

1.1 Background of Study

Accounting has always been into existence as many managers of enterprises in the past went to the extent of hiring expertise to manage the daily finances of the enterprise. Recording the day to day transactions of an organisation is very essential for the short and long term sustainability of that firm. With a substantial increase in the volume of accounting transactions, and an increase in exposure of information to errors due to complexity of these accounting systems, there was a need for a system which could store and process accounting information with increased speed storage and processing capacity.

Nevertheless, due to the problems of inaccuracy, time limitation, loss of document, voluminous research document, insecurity of information made the wide spread of Computerized Accounting possible which goes a long way in resolving some of these numerous problems. This is evident in the numerous advantages of Computerized Accounting over Manual Accounting System. (Porter and Millar, 1985) mentioned in this competitive advantage over the years, Information Technology (IT)had played a major role, changing the nature of the business.

Banking has transformed over the years from ledger cards and other manual fillings to a more innovative sphere which is the computer age with a computer system. It has moved from those day where everything was done manually to the days where transactions are carried out with the help of ATM (Automated Teller Machine) and other computer softwares.

The advent of Accounting Information System (AIS) has eradicated traditional banking practices, redefining the entire system as well as work place (Adekange, 1986: 23-25). The introduction of these computer age alongside its softwares has greatly improved the performance of Banks as it helps attain corporate goals of effective delivery services which goes a long way to iimprove sustainable growth level and the profitability of the Banks (Brien 1982:46).

In Cameroon, many Banks have adopted the use of computers in many sections of their activities such as recording of daily collections, recording of customer’s savings (account details) preparation and presentation of their yearend financial reports.

A Computerised Accounting system consist of softwares designed to tract all your company’s accounting transactions, with the goal in producing financial output for monthly reports, annual financial statements, tax returns informations and other report configurations used to analyse your company’s financial statement.

This system came as a measure to resolve certain problems evident in the numerous advantages of Computerized Accounting over Manual Accounting system. (Porter and Millar, 1985) mentioned in this competitive advantage over the years, information technology had played a major role, changing the nature of business who knows its effects.

With the introduction of information and technology (IT) system and more user- friendly softwares, they have helped in drastically reducing problems faced in records of book keeping practices which have given rise to a rapid information system as will affect decision making so as to increase the effectiveness on Microfinance institutions as well as Banks.

1.2 Problem Statement

Only about 18% of SMEs do not use computer software. “Having spent my career in credit and payments across positions at Bank of America, LSQ Funding and View post, it was not a surprise to me that small businesses continue to struggle to truly understand their bottom line” said Max Eliscu, CEO of Viewpost because of the dependency on spreadsheets, manual data entry and the postal services. The cost, the insecurity and difficulties in learning the softwares accounted for the inability to use them.

Most Banks, and Small and MediumSize enterprises use accounting information with the knowledge of its positive impacts on their firm. They find it very difficult to designing accounting softwaresto incorporate their work.

However, this research is based on the part played by Accounting Softwares to the efficiency and effectiveness of Banks in Cameroon with the case of UNICS PLC and see how to encourage enterprises or Banks to design softwares they may use in order to increase their performance and that of the employees.

The effects of IT on Small and Medium Size Enterprises and Banks manifest itself in many forms, from basic use of Books, Pens, files and folders, and faxes to the secondary use of instruments like Computers, Internet, Printers, and Scanners. Also, available and specialized Accounting software Packages run these system such as SAGE, XERO, QUICKBOOKS, GILOCEP and EPICOR.

This can be seen for instance for the inability of employees especially Accountants being unable in the past of bringing out clear financial statements of their institutions. This can be traced back to the inadequate development of a good and liable IT System.

Although many studies have been made with regards to the efficiency of Banks in Cameroon due to the coming of Accounting Software but few have attempted to discover the viewpoint of the Banking personnels in order to clear reasonable doubts and in order to know the role of the software to the Banking System. Therefore, the study will show the role played by the Accounting Softwares in the efficiency of Banks in Cameroon with a clear sample of UNICS plc as a case study.

1.4.Main Questions

1. How can the banking system be improved in order to maximize the usage of Accounting Software?
2. What can possibly be done in order to improve the effectiveness of Software Accounting in Banks?

Check out: Accounting Project Topics with Materials