Institute of Development Studies

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Browsing Institute of Development Studies by Author "Anaeli, adelisa"

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    Assessing the impact of computerized accounting system usage on organization performance in Tanzania: A case study on LGAs in Arusha region
    (2018) Anaeli, adelisa
    Information communication technology on computerized accounting system was intended to be effectively utilized in local governments to bring impact in the accounting and organization performance in LGA`s. This study aimed at assessing the impact of computerized accounting system usage on organization performance in Tanzania with special focus in local government authorities (LGA`s) in Arusha Region. The study used mainly primary data from 90 respondents selected using purposive sampling techniques. This study employed both descriptive analysis and regression analysis. A probit model was used to examine the relationship between computerized accounting system and organization performance. Under the descriptive analysis the study found that, all respondents surveyed in the LGAs use Computerized Accounting System. About 42% of respondents use Epicor in accounting system in organization, 30% use Excel, 21% use Tally, and the remaining 7% use Pastel. There was a significant difference in the means of the four groups of users of accounting systems with higher performance being associated with Epicor users. On the challenges encountered with the use of computerized accounting systems, it was found that 39% of respondents complained that CAS necessitate training to staff, 26% reported that computerized accounting system caused loss of data, 21% are challenged with the associated additional costs, and about 14% claimed it has resulted into wrong data entry. About 61 per cent of respondent reported that the organization is taking measures to overcome these challenges. In investigating the factors that are considered in choosing the accounting software, it was found that about 57% of respondents consider cost of training, 23% claimed initial cost of installation, and about 20% consider the acceptance by users. The Probit regression results indicate that, Marital Status, Education, Experience, Awareness, Training, Access to Use, and Other Use are significant factors influencing organization performance in LGAs in Arusha. This implies that government should capitalize in providing trainings to its employees to keep them updated with the changes in technology so as to achieve higher performance.