Impact Of The Computerization Of The Accounting Information System Of An Organization On Decision Making (Case Study: National Insurance Corporation) Kampala Uganda

ABSTRACT

The theme under consideration of the impact of the computerization of the accounting

information system on decision-making focuses on how computerization of the accounting

information system affects decision-making.

Questions were raised as to why the information system is actually computerized and costs and

benefits involved, and how these create an impact on decision-making. Such questions were

important in analyzing the cost effectiveness of the process of computerizing and the benefits of

doing so. Then how it has affected the decision-making process.

The questions were answered by looking at the background of the study, which explains the

importance of information and especially the accounting information. Then it goes on to uncover

the relation of the accounting information to decision-making and how decision-making is

affected by computerization. With this background, a problem is stated and objectives of the

study are developed. Then the significance of the study is revealed. In the literature review,

various authors are cited whose views on the topic are compared. This helped to place the topic

into a position of relevance for study.

A methodology was developed to guide in the collection of information for the purpose of

proving the study problem. This methodology helped set the different methods of data collection

used in the evidencing of the study. An area of study was set in National Insurance Corporation,

which is a listed institution. There were selected participants from within for different

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departments intended to develop a diversified view. The materials used for study included

questionnaires, interviews and observations and secondary data. The procedures taken were an

introduction to the organization, explanations were made, introduction to the respondents and

distribution and collection of questionnaires, as well s time for interviews. Some problems were

encountered in the event of collecting the data.

The findings were that the computerization of the accounting information system had an impact

on decision-making in terms of improved speed, accuracy and efficiency in the quality of work. It

has reduced vices like fraud and the tasks of employees have been eased. However, it is a very

costly process initially. Though such costs are recouped in the bank charges.

In conclusion, the impact is seen to be relative. The costly nature of the process is worthwhile

since the benefits outweigh the costs. It cannot be ignored that computerization has an impact on

decision-making. But in its relative state, it does not wholly affect decision-making. It is necessary to computerize, for better decision-making.