THE USE OF COMPUTER IN RECORDING ACCOUNTING INFORMATION, PROBLEMS AND PROSPECTS (A STUDY OF BENDEL FEEDS AND FLOUR MILL, EWU, EDO STATE)

CHAPTER ONE


1.0 INTRODUCTION


1.1       BACKGROUND OF STUDY


 


In this present world, individual, business men, firms and government have


seen  the  effects  of  computer  in  the  area  of  recording  and  safe  keeping  of


  information,.


  However,  this  computer  cannot function  unless  the  day-to-day  business


  activities are well documented and fed into it properly.


Every business set up has different levels of management and each of these


levels of management needs information to enable them make decision on


how the  objective  of  the  organization  can  be  achieved  likewise,  the


  government.


In Nigeria before the advent of computer, nearly all clerical works are, done


by paper and pen. This gives rise to


® Mismanagement of stationeries.


® Errors and omissions in accounting enterprises
                                                                                         
 

® Monotonous  work  and  tiredness  and  other,  associated  clerical


        problems.  But  since  the introduction  of  computer, problems  are


        minimized.  Therefore,  the  use  of  computer  in  recording  accounting


        information in this modern world cannot be over sighted. In the past,


        recording,  filing  and  safekeeping  of  information  was  known  as


        “routine  clerical  work”  but  with  the  advent  of  sophisticated,


        electronic business machines it is now known as “data processing”.


  Today, no business can survive without the use of computer especially, in


  recording accounting information.


 


  1.2 STATEMENT OF THE PROBLEMS


The problems of computerized accounting and computer are as follows:


    a. DATA/INFORMATION INPUT:


                  “Garbage  in  garbage  out”  is  a  general  phenomenon  in


            computer.  Electronic computer  has  no  self-judgment  and as  such


            devoid  of  human  errors  becauseit’s what  you  feed  into  the


            computer  (input)  that  it  gives  out  (output).  For  example,  if  one
                                                                                         
 

            feeds in wrong data into the computer, no matter how efficient the


            programming may be, wrong output will be the outcome because


            the computer has been misled.


    b. COMPUTER LANGUAGE:


                  Computer has its own language and all data are programmed


            and written in this special language. Therefore, it required a lot of


            training without which computer will not make any meaning to the


            users.


    c. ENVIRONMENTAL CONDITIONS:


                    Computer does not function effectively in a hot environment,


            for this reason it requires huge amount in installing air-conditions


            to enhance efficiency.


    d. COST:


                  Small businesses cannot afford computer because it is costly


            to  buy  and  maintain  which  constitutes  a  bottleneck  in  getting


            correct  information  and  as  such,  the  small  businesses  cannot


            thrive in the present of the big ones.
                                                                                          
 

    e. AWARENESS:


                  Some individuals, business men, firms, and government are


            not fully aware or do not know about the importance, advantages,


              disadvantages, and in-depth problems/prospects study of the use


            of computer in keeping accounting records and information.


 


  1.3 OBJECTIVES OF THE STUDY 


  This  research  work  on  “The  use  of  computer  in  recording  accounting


  information,  problems  and  prospects”  is  to  investigate  or  require  for  the


  following:


  a. To make  known  the brief  history  of  computer,  understand  some


        important  components  of  the  computer,  advantages,  disadvantages,


        and importance to users that is individuals, business men, firms, and


          government as a part of awareness on computerized accounting.


  b. To make known to small scale businesses affordability of computer in


        that the cost of different types of computers that can help in recording
                                                                                        
 

        accounting information and transactions are made known to them so


        that they could strive in the presence of the big businesses.


  c. To make  known  users  of  computer  in  recording  accounting


        information  to  know  how  to  keep  computer  running  in  a  perfect


        condition, the environment it’s to be kept in should be conducive and


        cool for effective and efficient performance of the computer system.


  d. To  make  known  to  users  of  computer  in  recording  accounting


        information  to  understand  that  there  are  languages  that  computers


        understand  and  use,  so  therefore  they  should  go  for  training  in  this


        languages to enable them communicate perfectly with the computers.


  e. To  make  known  to  the  users  of  computer  in  recording  accounting


        information to make sure that the data/information we want to input


        into the computer is correct, valid, trustworthy, and accurate so that


        when  we  need  back  those  information,  we  won’t  get  something  else


        from what we are looking for.

 

  1.4 RESEARCH QUESTIONS


  The following are some of the questions the researcher would like to find


  answer to in order for him to carry out the project effectively:


  a. What  made  individuals,  firms  and  government  adopt  computer


        system?


  b. What has been the effect of the use of computer on old and new staff?


  c. ‘‘Routine  clerical  work”  and  “Data  processing”  which  is  more


          economical?


  d. What  improvement  has  computer  made  to  the  general  accounting


        system in the firm and country?


  e. What are the problems that generate from the use of computer?


f. What are needed to make computer use effective?


  g. What effect has the use of computer in the labourmarket?


  h. In  modern  accounting,  can  computer  be  left  out  in  recording


        information?