Effectiveness of computer based accounting in business firms of eastern province

Abstract

Background: Accounting is an important part of every company thus; businesses are required to keep proper books of accounts.(Section 123 of the Companies Code (1963), Act 179). According to Omar, B (2009) Accounting refers to “The process of identifying, measuring and communicating economic information to permit informed and rational decisions”. Pacioli father of double entry book keeping system, today also his system still using. “Accounting can be divided into two basic categories: those which apply manual accounting and those which prefer Computer Based Accountings” (Weber, 2010). Aim: Therefore, this study aims is to evaluate the effectiveness of computer based accounting in business firms of eastern province Conceptual framework: the conceptual model proposes how effectiveness of computer based accounting in business firms impacts on performance. Accordingly, learning organization and organizational support influences to effectiveness of computer based accounting (CBA). The possibility theory is used to define the conceptual model. The contingency theory it hypothesized that organizational structure is function of context which context is simultaneously determined by the external environment, history and other organizational factors (Fiedler, 1964). Researchers have interpreted organizational structure to include the formal and informal information and decisionmaking methods that govern the allocation of organizational assets. The basic contingency framework consists of environment factors and firm-specific factors that affect to competitive strategy. The competitive strategy is effectiveness of computer based accounting (CBA) affected by learning organization and organizational support. Proposed methodology: This study considers the staff who worked under the department of accounts and information technology under the selected firms. 100 organisations are the sample size in the various districts in the eastern province. The Primary data will be collect through the questionnaire. The Secondary data collect through the sources of publications, company’s annual report and internet. Data analysis in this case was done quantitatively with statistical techniques such as the statistical package for social scientists (SPSS). The use of table, frequencies and percentages was employed in the analysis so as to ensure accuracy, adequacy and completeness of the study. Expected outcomes: The findings of this study will be helpful to the various business organization for evaluate the effectiveness of computer based accounting.