The Use Of Computer In Recording Accounting Information, Problems And Prospects

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.