Computerised accounting and financial reporting of sugar manufacturing companies in Uganda; case study of Kassanda sugar factory

Abstract

The purpose of this study was to examine the role of computerized accounting on financial reporting of sugar manufacturing companies in Uganda, using the case of Kassanda Sugar Factory. The objectives were; to examine how data capture has enhanced record keeping in Kassanda Sugar Factory; to assess how data processinghas enhancedpresentation of financial information reports in Kassanda Sugar Factory; to establish how data storage has enabled timely preparation of reports in Kassanda Sugar Factory. A mixed research approachwas used. The sample consisted of 86 respondents from Kassanda Sugar Factory and was obtained using probability sampling that is purposive and convenience sampling; data was collected using structured self-administered questionnaires. Results revealed that the most effective contributor to financial reporting is data capture (R Square of 0.513), followed by data storage (R Square of 0.450) and the least contributor is data processing (Adjusted R Square of .444). The test also revealed that Kassanda Sugar Factory computerized accounting has a statistically significant relationship with financial reporting since all p values were below the alpha of 0.05 and as such the null hypothesis was rejected. In conclusion, the computerized accounting system has proved to be effective in providing information regarding the financial position of an entity in a timely and efficient manner. Accounting information system serves the purpose of furnishing information about the entity’s economic resources, claims against those resources, owner’s equity and changes in the resources and claims.The study recommends that Kassanda Sugar Factory should ensure routine system maintenance programs in order to get rid of shortfalls such as viruses and fraud among others that may affect the system operations. The study also recommends that the employees handling transactions should be trained so as to improve on the accuracy and speed in posting