Computerized accounting systems and financial performance of manufacturing companies in Uganda

Abstract

The study examined the effect of Computerized Accounting Systems on financial performance of manufacturing companies in Uganda, A case of Uganda Clays Limited Kajjansi Branch. The study was based on three specific objectives including examining the effect of computerized data filing on financial performance of Uganda Clays Limited, determining the effect of computerized data storage on financial performance of Uganda Clays Limited and assessing the effect of computerized data retrieval on financial performance of Uganda Clays Limited. Theoretically, this study was underpinned by diffusion of innovation theory. This study used a cross-sectional survey design with both qualitative and quantitative approaches. The population of the study was 20 employees with a sample size of 19 employees. The study employed both purposive and simple random sampling. Findings from the study show that that Computerized Record Storage is the greatest contributor to financial performance with beta value = 0.551 at 0.001 level of significance. This means that Computerized Record storage has a positive and significant effect on financial performance. Findings from the study reveal that Computerized Record Filling is the second contributor to financial performance with beta value = 0.439 at .003 level of significance. This means that Computerized Record filling has a positive and significant effect on financial performance. Findings from the study show that Computerized Record Retrieval is the third contributor to financial performance with beta value = 0. 342 at .931 level of significance. This signifies that Computerized Record Retrieval has a positive and significant effect on financial performance. Findings from the model summary using predictors including Computerized Record Filling, Computerized Record Storage, and Computerized Record Retrieval produced Adjusted R Square value of 0.971. This shows that 97.1% variations in financial performance are caused by Computerized Record Filling, Computerized Record Storage, Computerized Record Retrieval while the remaining 2.9% variations in financial performance are as a result of other factors