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ACCOUNTING INFORMATION SYSTEM AND IT EFFECT ON COMPANY PERFORMANCE

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ABSTRACT
This study critically examined accounting information and its effect on company’s performance using selected companies in Nigeria. This include changing from the manual accounting system to the modernized and advance accounting information system which is much more faster and easier. To achieve the objective of the study, 150 questionnaires where administered to the employees of selected companies. The selected companies comprises of fifty (50) respondents each from three(3) companies, and the data collected was analyzed using statistical package for Social Science(SPSS) to compute chi-square at 0.05level of significance. From the result of this study it was noted that although there were other factors that affects organizational performance but majority of the respondents however agreed that the availability of accounting information is the principle factor that aids company’s performance. Therefore, the influence of accounting information is greatly and solely indicated as begin responsible for the failure or success of a company’s performance. Accounting information should be greatly adopted by small or big company so that it can show that there defect and also improve their performance.

CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
In the past and even up till now accounting processes are done manually through the use of separate ledgers to record financial transactions, it involves the use of books, supporting documents and papers to prepare financial statement. In a sole proprietorship that is probably developing, there might be minimal errors but for a large organisation, these errors are likely not to be easily detected or can be unknown for a long period of time which could affect the company on the long run. Over the years, through gradual changes, Accounting information system has been introduced which impacts the ways in which accounts are been prepared now. Information system has changed the way accounting tasks are processed; the green paper days are gone and businesses now have a centralized place where all accounting transactions are entered and saved as there is no need for cumulating large and long columns and searching for paper journals where an accounting computer software can perform all of these tasks.
Most organisations spend a huge amount of money on information system. As a result, this has cause budget to increase overtime. The essence of information system on organisation is for them to perform their work effectively. A major role that it plays is that it aids decision making in an organisation.
Decision making focuses on the evaluation of two or more alternatives which leads eventually to a final choice. Accounting information on the other hand deals with the process of identifying, measuring and communicating economic information to permit informed judgments and decisions by the users of the information.“Onaolapo and Odetayo (2012) identify accounting as the language of business as it records all transactions of an individual firms or bodies that can be expressed in monetary terms”. Professional accountants occupy very key and important position in the business world today.

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