IMPACT OF COMPUTERISED ACCOUNTING SYSTEM ON …

1 I IMPACT OF COMPUTERISED ACCOUNTING SYSTEM ON PERFORMANCE OF PAYROLL ACCOUNTING : A CASE OF URBAN WATER SUPPLY AND SEWERAGE AUTHORITIES BAHATI ALFRED A DISSERTATION SUBMITTED IN PARTIAL FULFILLMENT FOR THE REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION OF THE OPEN UNIVERSITY OF TANZANIA 2014ii CERTIFICATION I, the undersigned, certify that I have read and hereby recommend for acceptance by Open University of Tanzania, a research dissertation titled IMPACT of Computerized ACCOUNTING on Performance of Payroll ACCOUNTING .

2 Case Study of Urban Water and Sewerage of Authorities in partial fulfillment of the requirements for the award of a Master degree in Business Administration (Finance). _____ (Supervisor) _____ Date iii COPYRIGHT Not part of this dissertation may be reproduced, stored in any retrieval SYSTEM , or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise without prior written permission of the author or the Open University of Tanzania in that behalf iv DECLARATION I, Bahati Alfred do hereby declare that, this dissertation is my original work and that.

3 It has not been presented and will not be presented to any other university for a similar or any other degree award. _____ Signature _____ Date v DEDICATION I would also like to dedicate it to my lovely wife Madame Joyce Kibate who has tirelessly tried to see that I realize my dreams in spite of all the challenges she always went through . vi ABSTRACT The study examined the IMPACT of computerized ACCOUNTING SYSTEM on performance of payroll ACCOUNTING in Urban Water and Sewerage Authorities. The study aims to assess the performance of payroll ACCOUNTING after adoption of Computerized ACCOUNTING SYSTEM and to identify the positive and negative IMPACT of adoption of Computerized ACCOUNTING SYSTEM in performance of payroll ACCOUNTING in study made use the primary data collection which includes questionnaires and personal interview ,also the secondary data collected from official document of UWASAs, various research work on computerizes ACCOUNTING SYSTEM , ACCOUNTING journal.

4 Text books and Open University of Tanzania Library. The main findings indicate that adoption of CAS in ACCOUNTING practice has both positive and negative IMPACT . Based on this findings its recommended that the UWASAs should continue to adopt the use of CAS, providing training to the staff of Finance and Human Resources on how to use computerized ACCOUNTING software package, and to put security mechanism to prevent losses of financial data or risk of fraud. vii ACKNOWLEDGEMENT My first and foremost thanks go to the Almighty God for giving me the strength, courage to pursue my studies and conducting this research study.

5 I also thank my family for supporting me morally and spiritually during the whole period of my studies and during the research study. Their encouragement, advice and support enabled me to put in effort which enabled me to conclude the study successfully. My gratitude go to my Supervisor, Dr. who guided me from proposal writing up to the final report writing of this project report. His criticism, invaluable patience, intellectual guidance and support helped me not only to accomplish this study, but also to come up with the expected standards.

6 Sincerely, he deserves all kinds of credits. Furthermore, my thanks also go to all those who have contributed to this research in one way or another, such as my fellow students and others in the preparation of this paper. Kindly receive my gratitude. Lastly, but not least, my thanks go to members of ACCOUNTING and human resource staff in UWASAs, for their cooperation and participation as respondents of the study. viii TABLE OF CONTENTS CERTIFICATION .. ii COPYRIGHT .. iii DECLARATION .. iv DEDICATION.

7 V ABSTRACT .. vi ACKNOWLEDGEMENT .. vii TABLE OF CONTENTS .. viii LIST OF TABLE .. xii LIST OF APPENDICES .. xiv LIST OF ABBREVIATIONS .. xv CHAPTER ONE .. 1 INTRODUCTION .. 1 of the Research .. 1 Computerized ACCOUNTING .. 1 Functions of Computerized ACCOUNTING Software .. 2 Manual ACCOUNTING Versus Computerized 3 Background to Computerized ACCOUNTING Systems in Tanzania .. 3 Statement of the Problem .. 4 Objectives of the Study .. 4 Main Objectives .. 4 Specific Objectives .. 5 Research Questions .. 5 Significance of the Study.

8 5 ix Limitations of the Study .. 6 Definition of Terms .. 6 CHAPTER 8 LITERATURE REVIEW .. 8 Overview .. 8 Theoretical Literature Review .. 8 Technology Acceptance Model .. 8 Diffusion of Innovation Theory .. 9 Unified Technology Acceptance user Theory .. 11 The Concept of ACCOUNTING .. 11 Basics of ACCOUNTING .. 11 Characteristics of a quality ACCOUNTING practice .. 12 Disadvantages of Computerized ACCOUNTING SYSTEM .. 14 Empirical Literature Review .. 14 Adoption of Computerized ACCOUNTING SYSTEM .. 14 Factors that Determine Adoption of Computerized ACCOUNTING SYSTEM .

9 16 IMPACT of Computerized ACCOUNTING Systems .. 19 Challenges encountered with the Use of Computerized ACCOUNTING Systems .. 25 Research 25 CHAPTER THREE .. 26 RESEARCH METHODOLOGY .. 26 Overview .. 26 Research Approach .. 26 Conceptual Framework .. 26 Research Population/Area of the Study .. 27 x Sampling Design and Procedure .. 28 Variables and Measurement Procedures .. 29 Methods of Data Collection .. 29 Questionnaire .. 29 29 Documentation .. 30 Data Processing and Analysis .. 30 CHAPTER FOUR .. 31 DATA ANALYSIS, PRESENTATION AND DISCUSSIONS.

10 31 Age profile of respondents .. 31 Gender profile of respondents .. 31 Level of education of respondents .. 32 Level of awareness of respondents on application of Computerized ACCOUNTING Systems in payroll .. 32 Level of work experience of respondents .. 33 Extent of adoption of Computerized ACCOUNTING Systems in payroll 33 Type of Computerized ACCOUNTING Systems used .. 33 Adoption of Computerized ACCOUNTING Systems in payroll processing .. 34 Frequency of using Computerized ACCOUNTING Systems S in payroll processing .. 35 Effectiveness of payroll processing after adoption of Computerized ACCOUNTING Systems.