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
