ABSTRACT

methods for preparing financial statements to utilizing basic calculators, and now, embracing sophisticated Computerized Accounting Systems (CAS). This shift has enabled the production of financial statements with remarkable efficiency and simplicity. The focus of this research is an in-depth evaluation of the implementation of Computerized Accounting Software, specifically Sage Sari, QuickBooks, and Microsoft Excel, in various enterprises within the Buea Municipality. This investigation specifically targets businesses in Buea’s tertiary sector that are employing CAS. The study employs a random sampling method to select representative businesses from the larger target population.

To gather primary data, 40 questionnaires were distributed and completed by accountants from the chosen businesses. The analysis of this data was conducted using SPSS and Microsoft Excel, with the findings presented through tables, bar graphs, and pie charts. The study reveals that Sage Sari, QuickBooks, and Microsoft Excel are user-friendly, requiring minimal knowledge in computing and accounting for transaction recording. Regarding the quality of data recording and financial statements, these systems feature error detection capabilities, allowing for easy correction of recording mistakes. In terms of security, it was found that these systems can be password-protected to control access, include antivirus features to safeguard against malware, automatically save ongoing work during power outages, and offer cloud backup options to secure data against potential loss.

In conclusion, the aforementioned Computerized Accounting Systems are highly recommendable for beginners with limited computer and accounting skills, businesses aiming for precise, comprehensive, and easily interpretable financial statements, and those seeking to secure their data from unauthorized access. These systems not only restrict system access through password protection but also defend against hacking and virus threats.

Chapter One: Introduction

1.1 Background of the Study

CHAPTER ONE:
INTRODUCTION
1.1 Study Background
In contemporary accounting practices, the integration of computerized accounting has become essential for recording business activities and transactions, as well as for crafting financial statements, since the advent of computers. Key attributes that highlight its significance include minimal accounting knowledge requirements, accuracy, speed, automatic report generation, reduced fraud risks, robust security, and backup availability (Bahati, 2014). Notable examples of these accounting systems are Sage, QuickBooks, Peachtree, Excel Pro, Tompro, Odoo, Sun System, and Flesh Accounting, among others. Peachtree is predominantly used in America, QuickBooks in Asia, and Sage in the CEMAC zone.

According to Ankomah et al., (2012), traditional methods involving pen and paper were employed in the past for identifying, summarizing, classifying, and recording business transactions, posting them in journals, transferring to ledger accounts, preparing trial balances, making year-end adjustments, and generating financial statements like comprehensive income statements, statements of financial position, cash flow statements, statements of equity, and managerial notes. Though effective, this manual approach had several drawbacks such as high error rates, time consumption, security issues, no backup options, space constraints, and vulnerability of hard copies to damage (Bekele, 2017). This necessitated the integration of technology in accounting to mitigate these disadvantages.

Accounting predates the invention of computers. In the 1880s, American inventor William Burroughs developed the adding machine, enhancing the efficiency and accuracy of accountants’ arithmetic calculations. Later, in the late 18th century, Herman Hollerith invented a punch-card machine which accountants used to expedite data handling. In 1986, Peachtree, one of the pioneering accounting software, was developed, and since then, there has been a continuous evolution of computerized accounting systems (Fraser, 2019).

The goal of using computers in accounting is to ensure better record-keeping, eliminate misstatements, manage data efficiently, and ultimately enhance business management. Computerized accounting systems effectively produce relevant, reliable, and accurate records, simplifying financial transaction processing and reducing operational costs (Ahmed, 2006, as cited by Saleh, 2011). Currently, transactions are inputted into software applications using ICT, and through intranet or extranet, these transactions are instantly processed, generating accounting statements with minimal additional effort.

1.5 Significance of the Study

Firstly, the study will enable management to be able to choose the best accounting software package for their business. Secondly, it will broaden the knowledge of researchers on Computerized Accounting Packages, it will make recommendation for further research, and serve as a guide for other researchers. Also, it will help identify and address some possible challenges associated with the use of Computerized Accounting Packages. Furthermore, it will help software developers produce Computerized Accounting Packages that are simpler secured and produced better higher quality financial statements. Finally, it will help me be awarded a B.sc in Accounting in the prestigious University of Buea.

1.6 Scope and Limitation of the Study

This research focuses on the assessment of the use of computerized accounting systems in business in Buea municipality. The study will be conducted on small and medium size businesses from the primary secondary and tertiary sector in Buea municipality. Buea is a town located at the foot of Mount Cameroon in the southwest region of Cameroon. It has a very fertile soil. It has two climates, the raining season sunny season. Most companies in this geographical local are small and medium size companies. The study will be conducted for a period of 6 months, from January to June. Computerized accounting has many uses recording transactions, preparing financial reports, sending and receiving financial documents, to draw the budget, to track inventory keeping debtors, creditors, employees and shareholders information and also holding the OHADA accounting chart, but for the sake of this study we will focus only on the uses of computerized 6 accounting systems in the recording and presentation of financial statements. Due to the time constraints to conduct a full and extensive research, the researcher had to put constraints on the scope of the research so as to complete the research within the time scope given by the university calendar of activities. Also, finances were a big constraint to this research. The researcher needed money to constantly finance the supply of internet on research Medias (Phones, Laptop). The researcher had to print copies of the research work for submission and corrections. It was also a challenge to find respondents who are appropriate and willing to answer the questioners given the confidentiality of the information required.

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