THE IMPACT OF COMPUTERIZATION OF ACCOUNTING FUNCTIONS AS RELATED TO ORGANIZATIONAL PRODUCTIVITY
(A CASE STUDY OF FLOUR MILLS OF NIGERIA PLC.)

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ABSTRACT
This project focuses on the impact of computerization of accounting functions as related to organizational productivity and their being technological inclined using flour mills of Nigeria – A manufacturing company as a case study.

Essentially, this write up is aimed to provide a simplified, but thorough approach of understanding computer utilization as a tool for enhancing effective and efficient accounting functions which leads to an overall improvement of organizational productivity.

Acknowledging the fact that we are in the computer and information age, the volume of activities in our organizations has been on the increase which manual data processing operation cannot cope with or handle. Hence, the need for more effective and efficient means of data processing, which the advent of computer simply steps in to address.


TABLE OF CONTENT
Title page ii
Certificate iii
Dedication iv
Acknowledgement v
Abstract vi
Table of content vi-viii

CHAPTER ONE
1.0 Introduction 1
1.1 Problem statement 2
1.2 Objective of the study 3
1.3 Relevance of the study 3-6
1.4 Research question and hypothesis 6
1.5 Scope and limitation 6
1.6 Definition of terms 7-9

CHAPTER TWO: LITERATURE REVIEW
2.0 Introduction 10
2.1 Brief History of the organization 10-12
2.2 Conceptual frame work 12-24
2.3 Computer and the accountant 24-26
2.4 Manual Book keeping compared with EDP system 27-31
2.5 Internal controls and computerization 31-34
2.6 Effect of computerization on productivity 34-36


CHAPTER THREE: METHODOLOGY
3.0 Introduction 36
3.1 Nature and sources of data 36
3.2 Research population/sampling plan 36-37
3.3 Sampling procedure and administration of data 38
collection instrument
3.4 Data collection instrument 39
3.5 Choice of data analysis 40
3.6 Constraint in data collection 41-42

CHAPTER FOUR: ANALYSIS OF DATA AND INTERPRETATIONS
4.0 Analysis of data 43
4.1 Interview 43-42
4.2 Questionnaire 46-60

CHAPTER FIVE
5.0 Summary, conclusion and recommendation 61
5.1 Summary 61
5.2 Conclusion 62
5.3 Recommendation 63-64
References 65
Questionnaires 66-69


CHAPTER ONE

1.0 INTRODUCTION
The various technology developments in many countries is providing different scientific ideas, one of such is the invention of the computer system for information processing in both private and public organization environments.

The demand for computer usage has been on the increase, there is hardly no organization that is not involved in computerization so as to meet up globally, because the world(s) fast becoming a global village system. This is an attestation that we are in the computer age.

The modern day business organization atmosphere can compete effectively and efficiently to optimize its objectives by having its system and its integral component computerized.

Hence, the need for computerizing the accounting system which form apart of these components functions such as recording, classifying, summarizing financial transactions and interpreting the result thereof to various uses, as well as establishing internal control system 6 as to safe guard and protect the assets of the business is quite obvious.

The computer is designed to receive input (raw data) process and transform it to useful and desirable output (information) has gain credibility in the various aspect of human activities, especially in the developed and developing countries. Therefore, the computerization of accounting functions has become on indispensable tool by which organizations attain productivity objectives. This is arrived at by doing away with the cumbersome manual processing and time wasting associated with manual methods of accounting processes.

The use of the computer is beneficial to all and sundry. It saves time and drudgery, it enlightens and educate. The list of the advantages of computer usage seem endless yet it is not without some short comings ranging from health and environmental hazards as a result of toxic dumps emanating from computer production to retardation effect on human thinking faculty, thereby making many genius dummy.

In all, when we weight the advantages and disadvantages of computerization, the use of computer is justified.

1.1 PROBLEM STATEMENT
It is a generally agreed statement that output is a function of input. The efficiently and effectiveness of and system depends solely on the method of operation and approach adopted. So considering the significance benefits of computerization and its expanded advantages over manual operations, one can raise an opinion whether computerization of operations has any impact on the efficiency of the way tasks are carried out. That is, does computerization has impact on the organizational functions, precisely accounting functions?

1.2 OBJECTIVE OF THE STUDY
The purpose of this study can conveniently be classified into two primarily, to fulfill the requirement for the award of Higher National Diploma (HND) certificate being a graduating student of Lagos State Polytechnic, while it’s secondary aim is to contribute to scientific knowledge. The project will be much informing as to understanding computerization as a tool in enhancing efficient and effective practice of accounting functions to improve organizational productivity.

1.3 RELEVANCE OF THE STUDY
The main significance of the study is to enlighten companies and organizations on the benefit associated with proper computerization of their accounting system. And to also assist those that have already computerized their system to improve effectively and efficiently on the accounting system of such organization.

The importance of having the accounting activities of an organization computerized are numerous to mention but for the limit of this study could be briefly discussed as follows:-

1.3.1 Cost benefit
The main objective of any business organization is to maximize profit, which could be easily done through cost minimization. The use of computer has helped a lot in minimizing and eliminating completely some cost which are peculiar to manual process of accounting. Costs such as labour cost are reduced drastically as many personnel are not required when computing or computer operations are adopted. The cost associated with the use of a ledger as a means of entries and recording transactions may also be eliminated and such like.

Therefore, the aggregate of these reductions in cost invariably boost the profitability and increase of the shareholders fund.

13.ii. Social benefit
Computer usage is the order of the day, the therefore everybody is aspiring to be computer literature because this is one of the factors considered at the point of employment as it gives the employee an edge over other seeking employment. The organization has leas work to do I retraining their employees on computer soft ware uses. This will go an extra mile in motivating them to perform their duty effectively and efficiently.

Furthermore, computer eliminates fatigue, saves time and helps uses learn more about their job requirement as information are easily derived.

1.3.iii. Information processing
Information processing is common to both manual and computer base system of accounting, but when the process of these two methods are compared, obviously the computer base system enhance quick and easier information processing. As a mater of fact it eliminates errors associated with manual processing due to human defect.

1.3.iv System control
Computerization of accounting activities gives room for establishing different type of control on accounting principle and entries. Such control includes the application or procedural control and the system control.

The procedural control system is established to ensure completeness, accuracy, correctives and validity of input, while the latter ensure that the activities on the system development are authorized, approved and amended if necessary.
13.v Centralization of activities
Computerization also brings about integration of the operations and accounting system so as to achieve better cohesion in registration of data and in reporting.

1.3.vi Flow of information
Information is easily disseminated in computer base system and delay in flow of information is highly abided. Therefore promoting prompt and easy exchange of information within the accounting department as well as to and from connected department.

1.3vii. Utilization of capacity
Optimal utilization of available capacity is achievable through the application of distributed data processing techniques, hence ensuring efficient use of facilities.

1.4 RESEARCH QUESTION AND HYPOTHESIS
Research question
Does computerization of accounting functions improve organization productivity?

1.5 SCOPE AND LIMITATION
This project is centered mainly on knowing the impact of computerization of accounting functions on organizational productivity. It covers procedure taking in developing a system, the control and precautions to the system, the various methods to be adopted and how best to handle computer to achieve organizational goals.

The major constraint of this project work are none availability of sufficient material resources to carryout a more in-depth research and the time to do so. However, in spite of these constraints, an attempt has been made to maximize the usage of the available resources I order to come out with tangible findings and useful recommendation.



1.6 DEFINITION OF TERMS
There is need for this section of the project to enable the users of this work understand certain technical terms which need to be defined and thereby appreciating the value of the whole exercise. The terms associated with this work are so numerous; hence effort was made to define some vital terms here.

i. Computer: The is a large electronic machine that is capable of storing and processing large amounts of information and of performing calculations according to the instructions given it. Computer – input (data) process – output (processed information).
ii. Instruction: This is a set of direction which defines a basic operation to be performed. Thus, it is what the computer has been instructed to do that is performed, otherwise were has been instructed to do that is performed, otherwise we have what is known as “GIGO” that is Garbage in Garbage out. Therefore the computer must be fed with the right data in order to process the right data.
iii. Computer Program: This is a sequence of information instructions put into a computer
iv. Computer operator: This is a person that has been trained to work with a computer such a person has an in-depth knowledge on how to operate a computer.
v. Computer operator: This is a person that has been trained to work with a computer. Such a person has an in-depth knowledge on how to operate a computer.
v. Programmer: This is person who writes a set of program of instructions for the computer to act on. Software and hard ware programme.
vi. Data: These are raw facts or information given to the computer to process so as to generate other information.
vii. Information: This refers to processed or unprocessed data that can be used.
viii. Hardware: These are the physical units or components of the computer system. Such as the central Processing units (CPU) the computer system. Such as the central processing units (CPU)
ix. Software: These are set of programs written to be processed by the hardware.
x. On line: This is a situation whereby information’s are processed directly from the computer memory under the control of the control of the Central Processing Lenit (CUP) bringing about a direct communication between the computer and its various users.
xi. Off-line: This is a situation whereby information is not being processed directly from the computer memory as a result of a disconnection.


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