CHAPTER ONE

INTRODUCTION

1.0 Introduction

This chapter will include; Background of the study, Problem statement of the study,
Purpose of the Study, Research objectives, Research questions, Scope of the study,
Significance of the Study, Operational definitions of the study and Conceptual
framework of the study.

1.1 Background of the study

Globally, Computerized accounting is method of accounting using modern

accounting technology (VAN-Briefing, 2005). As a result, it alleviates the challenges
associated with manual accounting and helps to save time, create accurate accounts,
and facilitate account communication. Computerized accounting is a good example
of how to put current technical advancements to good use (Brynjolfsson and Hitt,
2003). As a result, the effectiveness I of computerized accounting in Mogadishu's
selected wholesale enterprises will be studied in terms of data validation, security,
storage and correctness, information, and reporting(Magdalene, 2011). Financial
performance is a subjective measure of how well a firm can use assets from its
primary mode of business and generate revenues. The term is also used as a general
measure of a firm's overall financial health over a given period. Accounting as a
discipline has existed since the 15th Century (Frankwood& Sangster, 2005).
According to these authors, since then both businesses and economies have greatly
evolved. Accounting theory is a constantly changing subject, as it must adapt to new
ways of doing business, new technological standards, and reporting gaps that are
uncovered. (Omondi, 2013)Organizations like the International Accounting Rules
Board help establish practical applications of accounting theory, and specialists like
CPAs help businesses interpret accounting standards, according to the scholar.

In Africa, In 1950, many banks started using computers to help in the execution of
accounting functions like production of financial reports. (MASANJA, 2020)DFCU
bank Uganda is a subsidiary of DFCU limited which was started in 1964 by the
common wealth development corporation in the United Kingdom(Magdalene, 2011).
Its main objective was to support long term development projects whose financing
needs and risks were not covered by the then financing commercial lending
institutions. In 1999 and 2000, DFCU bank acquired Uganda leasing company and
gold trust bank thus extending the services of the group to encompass equity finance,
long term development finance; leasing and general banking services DFCU limited
became a public limited company in 2004 and is now listed on Uganda securities
exchange.

According to (Shiraj, 2015)Accounting is most stable of the management disciplines

to manage the financial healthiness of any business. In spite of its stability and
continuity, accounting has seen major changes during the past century. Computerized
accounting system is a tool which, when incorporated into the field of Information
System, were designed to help in the management and control of topics related to
firms’ economic-financial area.

In Somalia, In Somalia, Mogadishu in particular, many Banks still make decisions to

use manual accounting information systems (MAIS) although computerized
accounting information system is said to be having comparative advantage over the
manual accounting information system as it is user-friendly, low-cost
microcomputers and the need to facilitate information to the end users (Lief, 2000).
As a result of this, growing Banks in Mogadishu face increased financial challenges
and consequently, there is a greater need for careful attention to AIS and financial
repo1ting (Mohamed, 2007). Over the years, software suppliers have been adding
more innovative features to their finance packages, such· as web interfaces and better
integration with supply chain and other applications, and they have also altered
products to make them more useable for non-accountants.
1.2 Problem statement

Computerized accounting has played an instrumental in most of companies through

boosting their financial performance(Dufera, 2010). As the intensity of computerized
accounting use in business has greatly improved over the years, this has helped
commercial institutions to improve on their overall financial performance by
promoting transparency, accountability and efficiency through faster capturing,
processing and communication in information. However, it is still evident that there
still exist some performance lags(MASANJA, 2020).

Currently, Salaam Bank, Mogadishu branch is experienced poor financial

performance since its level of profitability has declined.it is believed that failure to
effectively adopt computerized accounting system at the bank led to this situation.
the bank failed to sell services like master cards, personal accounts, investment and
etc. (Sugut, 2015)One of the factors responsible for the high rate of business failure
in this area is poor records and financial management.

As a result, the Bank’s level of profitability and liquidity has declined and its in this
regard that the researcher will examine computerized accounting and financial
performance at Salaam Bank, Mogadishu-Somalia.

1.3 Purpose of the Study

The purpose of the study is to examine computerized accounting and financial

performance at Salaam Bank Mogadishu Branch- Somalia.
1.4 Research objectives

1.4.1 General objective

The general objective of the study is to examine computerized accounting and

financial performance at Salaam Bank Mogadishu Branch- Somalia.

1.4.2 Specific Objectives

General format

 To identify the role of computerized accounting at Salaam Bank Mogadishu

Branch- Somalia.
 To determine the factors that influence financial performance at Salaam Bank
Mogadishu Branch- Somalia.
 To assess the relationship between computerized accounting and financial
performance at Salaam Bank Mogadishu Branch- Somalia.

Many to one format

 To assess the effect of Tally erp 9, in computerized accounting and financial
performance at Salaam Bank Mogadishu Branch- Somalia.

 To evaluate the effect of QuickBooks in computerized accounting and financial

performance at Salaam Bank Mogadishu Branch- Somalia.

 To analyze the effect of time saving of computerized accounting and financial

performance at Salaam Bank Mogadishu Branch- Somalia

1.5 Research questions

1. What is the role of computerized accounting at Salaam Bank Mogadishu
Branch- Somalia?
2. What are the factors that influence financial performance at Salaam Bank
Mogadishu Branch- Somalia?
3. What is the relationship between computerized accounting and financial
performance at Salaam Bank Mogadishu Branch- Somalia?
1.6 Scope of the study
1.6.1 Geographical scope

The study will be conducted from Salaam Bank Mogadishu branch, this bank is
located at makka Al-mukara road area of Zoobbe. Because this bank has experienced
poor financial performance.

1.6.2 Content Scope

The study will focus on the role of computerized accounting at Salaam Bank
Mogadishu Branch- Somalia, the factors that influence financial performance at
Salaam Bank Mogadishu Branch- Somalia and the relationship between
computerized accounting and financial performance at Salaam Bank Mogadishu
Branch- Somalia.

1.6.3 Time Scope

The researcher will cover the study in 3 months that is February-May 2022, because
this study includes data collecting and editing.

1.7 Significance of the Study

Commercial Banks

The study will help and clarify the management of commercial banks in Somalia
about the role played that computerized accounting towards financial performance.

Future researchers

the study will act as a source of references to future researchers concerning

computerized accounting and financial performance.
Researcher

The study will enable the researcher to complete his bachelor’s degree about
accounting and finance.

1.7 Operational definitions of the study

Computer is a digital electronic machine that can be programmed to carry out
sequences of arithmetic or logical operations (computation) automatically. Modern
computers can perform generic sets of operations known as programs. These
programs enable computers to perform a wide range of tasks(Omondi, 2013).

accounting is the art of recording, classifying, and summarizing in a significant

manner and in terms of money, transactions and events which are, in part at least, of
financial character, and interpreting the results thereof’(Sugut, 2015). With greater
economic development resulting in changing role of accounting, its scope, became
broader.

Computerized accounting is accounting done with the aid of a computer. It tends to

involve dedicated accounting software and digital spreadsheets to keep track of a
business or client's financial transactions. (MASANJA, 2020)Computerized
accounting is a beneficial use of current technological advances. Not only has it
revolutionized the traditional paper methods of accounting, but it has also created
new types of accounting applications for business.

Finance is defined as the management of money and includes activities such as

investing, borrowing, lending, budgeting, saving, and forecasting. There are three
main types of finance: (1) personal, (2) corporate, and (3) public/government

performance

financial performance
1.8 Conceptual framework of the study

Independent Variable Dependent Variable

Computerized Accounting Financial performance

Time saving Growth profit

Accuracy Return investment
Reliability Liquidity

Intervening Variable

Employees
Government policy
Customers

Figure 1. 1 Conceptual framework

 CHAPTER TWO

LITRATURE REVIEW

2.0 Introduction

This chapter will contain literature review and it is basic of the objectives of the
study, that includes; the role of computerized accounting at Salaam Bank Mogadishu
Branch- Somalia, the factors that influence financial performance at Salaam Bank
Mogadishu Branch- Somalia and the relationship between computerized accounting
and financial performance at Salaam Bank Mogadishu Branch- Somalia.

2.1 Concept of Computerized accounting

A computerized accounting system is an accounting information system that

processes the financial transactions and events as per Generally Accepted
Accounting Principles (GAAP) to produce reports as per user requirements(For,
2013). Every accounting system, manual or computerized, has two aspects. First, it
has to work under a set of well-defined concepts called accounting principles.
Another, that there is a user -defined framework for maintenance of records and
generation of reports(MASANJA, 2020). In a computerized accounting system, the
framework of storage and processing of data is called operating environment that
consists of hardware as well as software in which the accounting system, works. The
type of the accounting system used determines the operating environment. Both
hardware and software are interdependent. (MASANJA, 2020)The type of software
determines the structure of the hardware. Further, the selection of hardware is
dependent upon various factors such as the number of users, level of secrecy and the
nature of various activities of functional departments in an organization.

In the case of a club, where the number of transactions and their variety are relatively
low, a PC with standardized software may be sufficient. However, to manage the
copious data and complex reporting requirements of a major company organization
with a number of geographically dispersed factories and offices, more powerful
computer systems supported by sophisticated networks are necessary(MASANJA,
2020). Multi-user operating systems such as UNIX, Linux, and others are utilized to
meet these needs.

Computerized accounting system refers to the system of maintaining accounts using

computers. It involves the processing of accounting transactions through the use of
hardware and software in order to keep and produce accounting records and
reports(Abdulle et al., 2019).

2.2 Concept of Financial performance

According to Capon, et al (1996: 7) measures of financial performance take a variety

of forms. These measures differ from each other on several dimensions, and many
issues concern the choice of which particular financial measure to employ. Financial
decisions are often found to be set within a framework of organizational
improvement initiatives, and a number of such initiatives are at hand. (Dufera,
2010)The value-based management approach and other organizational improvement
initiatives extend over a wide range of theoretical constructs and practices. The two
best known value-based management frameworks are, according to Oxalemia and
Wihlborg (2002), the shareholder value-added model developed by Rappaport (1986)
and the economic value-added model developed by Stern Stewart (1990). Four other
shareholder value management approaches commonly in use are the Balanced
Scorecard (see, e.g., Kaplan and Norton, 1992), activity-based costing, cash value-
added (see, e.g., Ottosson and Weissenrieder, 1996), and cash flow return on
investment (see, e.g., Madden, 1999).

Organization improvement initiatives may still serve as a guide for financial

decisions within firms. These initiatives also resemble to a large extent earlier
models such as the PIMS model (Profit Impact of Marketing Strategies) (see e.g.,
Buzzell and Gale, 1987) which commonly utilized accrual-based accounting values.
Thus, for example, Rappaport’s model (1998) may provide a framework for
management decisions. The model consists of five levels. The corporate objective is
separated into two valuation components: cash flow from operations and the cost of
capital.

According to Cochran and Wood (1984), the definition of corporate financial

performance is not debated in literature. Such a lack of discussion has caused
disagreement on how to measure the phenomenon. Business performance is the kind
of information toward which accounting institutions must show responsibility
(Gasparetto, 2004). However, one believes that corporate financial performance is
divided into two general categories: the first one regards the return to the investor;
the second one refers to accounting return (profit) (Cochran & Wood, 1984).
McGuire, Sundgren and Schneeweis (1988) argue that corporate financial
performance uses both financial variables and capital market measures.

2.3 The role of computerized accounting

The major aim of an accounting is to produce relevant information for decision

makers and stakeholders. This is due to the need and aim to produce reports at the
right time to the right people besides need for efficiency, Computerized accounting
has speed and accuracy and free timely reporting which becomes: he important aim
of the system (Meigs and Meigs, 1986,). I ‘he primary advantage of the computer is
its incredible speed. It’s noted that the time needed for a computer to post a
transaction is within a few millions of a second and also computer system enhances
increased levels of speed of financial information sharing among stakeholder and that
this system speeds up the processes of producing monthly and annual reports to the
center pay rolls preparation which would have otherwise been time consuming and
tedious(For, 2013). Thus, the Local Government with many employees finds it useful
as pay roll system requires a good deal of regular processing. Therefore, it’s on this
speed that several advantages accrue of a computerization process over the manual
accounting system. Saving money even though there is immediate cost of the
software, you’re potentially saving on the costs of IJN necessary audits as well as
employing many employees. There is quality of work produced which even
motivates the staff or the employees of the Local Government.

The most popular system of recording of accounting transactions is manual which

requires maintaining books of accounts such as Journal, Cash Book, Special purpose
books, ledger and so on. The accountant is required to prepare summary of
transactions and financial statements manually. The advanced technology involves
various machines capable of performing different accounting functions, for example,
a billing machine. This machine is capable of computing discount, adding net total
and posting the requisite data to the relevant accounts.

Time: Paper works are involved in manual accounting; all the accounting activities
are carried out on paper manually and obviously, it takes much time and resources
for the average business organization and most especially, a financial institution that
still uses the manual system. Computerized accounting saves a lot of time where in,
the employee has to record the transactions and all the other calculations would be
carried out by the software either automatically or by a request Magdalene M,
(2010). Accuracy: I also agree with Magdalene M, (2010) again, that computerized
accounting is not only speedy but also accurate. With a computer being used to
collect data and change it into meaningful information that is used by management to
make timely and effective decisions, the computer carries out the entire data
processing through classifying, sorting, calculating, 7 summarizing the data and
production of reports, as stated by Birungi (2000). This entire process helps to
minimize the risk of miscalculations and other human errors that could have emerged
as a result of manual data processing.
2.4 The factors that influence financial performance

Leverage

In the quest to optimize their objective, which hinges primarily on quantifiable

performance, financial managers have adopted various capital structures as a means
to that goal. A firm can finance its investment by debt and/or equity. The use of
fixed-charged funds, such as debt and preference capital along with the owner’s
equity in the capital structure is described as financial leverage or gearing (Dare and
Sola, 2010). Leverage refers to the proportion of debt and equity in the capital
structure of a firm(Pandey, 2007). The financing or leverage decision is a significant
managerial decision because it influences the shareholder’s return and risk and the
market value of the firm. The ratio of debt-equity has implications for the
shareholder’s dividends and risk, this affect the cost of the capital and the market
value of the firm.

Liquidity

Liquidity measures the ability of the business to meet financial obligations as they
fall due, without disrupting the normal, ongoing operations of the business. Liquidity
can be analyzed both structurally and operationally. Structural liquidity refers to
balance sheet measures of the relationships between assets and liabilities and
operational liquidity refers to cash flow measures. Solvency measures the amount of
borrowed capital used by the business relative to the amount of owner’s equity
capital invested in the business. In other words, solvency measures provide an
indication of the business’ ability to repay all indebtedness if all its assets were sold.
Solvency measures also provide an indication of the business’ ability to withstand
risks by providing information about the operation’s ability to continue operating
after a major financial adversity (Harrington and Wilson, 1989).
Company Age

Several earlier studies (Batra, 1999; Lumpkin and Dess, 1999) argued that firm age
has an influence on its performance (Sorensen and Stuart, 2000) argued that
organisational inertia operating in old firms tends to make them inflexible and unable
to appreciate changes in the environment. Newer and smaller firms, as a result, take
away market share in spite of disadvantages like lack of capital, brand names and
corporate reputation with older firms (Kakani, Saha and Reddy, 2001).

Company Size

Previous studies in finance have shown that company size can predict the future
stock price (Simerly and Li, 2000). For instance, Hvide and These (2007) in their
study concluded that larger firms have better financial performance. Flamini et al
(2009) suggested that bigger firms are more competitive than smaller firms in
harnessing economies of scale in transactions and enjoy a higher level of profits.
Athanasoglou et al (2005) assert that increase in company size increases 12 the
performance of the bank. Almajali et al (2012) argued that the size of the firm can
affect its financial performance. However, for firms that become exceptionally large,
the effect of size could be negative due to bureaucratic and other reasons (Yuqi,
2007).

2.5 Relationship between computerized accounting and financial performance

According to Anderson (1992), there is a positive relationship between computerized

accounting systems and financial performance. He consented that computerized
accounting systems improve management activities such as decision making and
controlling Garbutt (1995). The system enables production of timely and reliable
information on which specific action or plans may be based. This improves financial
performance. Computerized accounting departments in business create audit trail by
which every transaction can be traced very fast. Garbutt (1995), says that proper
recording of transactions provides sufficient information as regards to performance
and financial position of the business. Boston, (1975), states that conducting
business. Therefore, proper accounting systems should be kept so at any required
moment a reference could be made on it and the combined efforts to all transactions.
In order to compete favorably, banks have resorted to computerization as a major
tool for improving service quality, hence improving their performances. The
emergency of electronic banking has incredibly reduced the need for direct link
between the bank and its customers. This is basically because internet, telephone and
ATM banking networks do complement each other to give customers a wider range
of financial services that can substitute those provided by traditional banking tools.
Automation of banking services enables customer satisfaction through its ability of
speed, accuracy, accessibility and flexibility in service provision.

Summary

A computerized accounting system is an accounting information system that

processes the financial transactions and events as per Generally Accepted
Accounting Principles (GAAP) to produce reports as per user requirements.
Computerized accounting system refers to the system of maintaining accounts using
computers. measures of financial performance take a variety of forms. These
measures differ from each other on several dimensions, and many issues concern the
choice of which particular financial measure to employ. Organization improvement
initiatives may still serve as a guide for financial decisions within firms. The major
aim of an accounting is to produce relevant information for decision makers and
stakeholders. The most popular system of recording of accounting transactions is
manual which requires maintaining books of accounts such as Journal, Cash Book,
Special purpose books, ledger and so on. Leverage refers to the proportion of debt
and equity in the capital structure of a firm. The financing or leverage decision is a
significant managerial decision. there is a positive relationship between
computerized accounting systems and financial performance. He consented that
computerized accounting systems improve management activities such as decision
making and controlling.

CHAPTER THREE

METHODOLOGY

3.0 Introduction

This chapter contains research design, target population, sample size, sampling
techniques, data sources, data collection tools, validity and reliability of instrument,
data processing, data analysis, ethical considerations and limitations of study.
3.1 Research design
The study will be based on cross-sectional research design. A cross-sectional study is
a type of observational study that analyzes data from a population, or a representative
subset, at a specific point in time that is, cross-sectional data. Quantitative approach
will be used in data collection. The researcher will use this kind of research design
because it is much cheaper to perform than other options that are available to
researchers.

3.2 Target Population

The study will use a target population of 51 respondents. The target population is the
total group of individuals from which the sample might be drawn. The target
population includes, 5 top managers of bank,15 employees of the Bank, 29 clients of
the bank and 2 officials from accounting department of the Bank. The researcher
will use these respondents because they are believed to have important information
about the study topic.

3.3 Sample size

The study will use Sloven’s formula to determine the sample size of the actual
respondents. Sloven’s formula states:
N
n= 2
1+ N ( e)
Where; n=sample ¿ N =target population ;∧e=0.05 level of significance
51 51
n = n= = 45 respondents
1+ 51 ( 0.0025 ) 1.125
Therefore, the sample size is 45 respondents

3.0 Table showing target population and sample size

 Category Target Sample size Sampling
population techniques
Top managers 5 4 Purposive

Employees of the Bank 15 13 Random

sampling
Clients of the Bank 29 26 Random
sampling
Accounting department 2 2 Purposive
officials sampling
Total 51 45
Source: Primary Data (2022)

3.4 Sampling techniques

3.4.1 Simple random sampling

The study will be based on simple random sampling. The Simple Random

Sampling is a sampling technique where in every item of the population has an equal
and likely chance of being selected in the sample. Employees and clients of IBS
Bank will be selected using simple random sampling. The researcher will use simple
random sampling because it offers a chance to perform data analysis that has less risk
of carrying an error. 

3.4.2 Purposive sampling

The study will also be based on purposive sampling. Purposive sampling is a

sampling technique in which researcher relies on his or her own judgment when
choosing members of population to participate in the study. Top managers of IBS
Bank, Mogadishu and accounting department officials will be purposively selected.
The researcher will use purposive sampling because there is still an opportunity to
create generalizations from the data.
3.5 Data sources
3.5.1 Primary Data
The study will use primary data. Primary data is the data which is collected from
some primary sources i.e., a source of origin where the data generate. Primary data
will be obtained from questionnaires. The researcher will use primary data because
it is more accurate because it is directly collected from the population.

3.5.2 Secondary Data

The study will be based on secondary data. Secondary data refers to data which is
collected by someone who is someone other than the user. Secondary data will be
obtained from internet, libraries, journals, documents, reports, etc. The researcher
will also use secondary data because it is time saving.

3.6 Data collection tools

The researcher will use a self-administered questionnaire. A self-administered

questionnaire (SAQ) refers to a questionnaire that has been designed specifically to
be completed by a respondent without intervention of the researchers (e.g. an
interviewer) collecting the data. The researcher will distribute questionnaires to
Managers, employees, clients and accounting department officials of IBS Bank,
Mogadishu. The researcher will use self-administered questionnaire because
respondents answer at their suitability.
3.7 Validity and reliability of instrument (questionnaire)
3.7.1 Validity of the instrument
The researcher will also use Validity of the instrument. Validity refers to the degree
to which results obtained from analysis of the data actually represents the
phenomenon under study. In calculating validity, the researcher will ensure that
questions are relevant in order to ensure that data collected gives meaningful and
reliable results represented by variables in the study. The researcher will use the
following formula to establish validity of the research instrument as seen below.

Content Validity Index (CVI) =

Number of question declared valid
Total no . of questions∈the questionnaire

If the overall Content Validity Index (CVI) of the instrument is equal to the average
acceptable Index of 0.7 or above, then the instrument will be accepted as valid
(Amin, 2005).

3.7.2 Reliability of the instrument

To ensure the reliability of the instrument, the researcher will use the test-retest
method. The questionnaire will be given to 10 people and after two weeks, the same
questionnaire will be given to the same people and the Cronbatch Alpha will be
computed using SPSS. The minimum Cronbatch Alpha coefficient of 0.75 will be
used to declare an instrument reliable (>0.75).

3.8 Data collection procedures

An introductory letter will be obtained from SNU. When it is approved, the

researcher will make a list of qualified respondents from Top managers of IBS Bank,
Mogadishu, Employees of the Bank, Clients of the Bank and Accounting department
officials. The researcher will then explain the purpose of study to the respondents
and request them to sign the informed consent form. The researcher will recruit and
train research assistants to collect accurate data timeously. The respondents will be
requested to answer in full and not to leave any part of the questionnaires
unanswered. The researcher and assistants will collect the questionnaires within two
weeks from the date of distribution. All returned questionnaires will be checked if
they are all answered.

3.9 Data Presentation

The data obtained from the questionnaires will be double checked to make sure that
the information provided is complete, consistent, reliable, and accurate. Data
processing will involve scrutiny of the responses provided by different respondents.
Data will be sorted, edited, and interpreted. The researcher will then code and
tabulate the data obtained. The data then will be used to reinforce information got
from questionnaires to draw conclusion and recommendations.

3.10 Data analysis

The quantitative data will involve information from the questionnaires only. Data
from the field will be too raw for proper interpretation. It will therefore be vital to
put it into order and structure it, so as to drive meaning and information from it. The
raw data obtained from questionnaires will be cleaned, sorted and coded. The coded
data will be entered into the Computer, checked and statistically analyzed using the
statistical package for social scientists (SPSS) software package to generate
descriptive and inferential statistics.

3.11 Ethical Considerations

To ensure ethical considerations in undertaking the study and the safety, social and
psychological well-being of the respondents involved in the study, the researcher will
get an introductory letter from the SNU. On the other hand, to ensure the safety of
the person and/or community involved in the study the researcher will get their
consent of the respondent before they fill in the questionnaires. The study will also
ensure the privacy and confidentiality of the information provided by the respondent
which will be solely used for academic purposes.

3.12 Limitations of the Study (Challenges faced)

Some respondents might be too busy with their daily schedules and might fail to
spare time to fill the questionnaires in time. In such circumstances, the researcher
will give ample time to those respondents. As a result of other academic work
coupled with shortness of time given for completion of this research work, the
researcher will have to battle with the limited time available to him in combining
traveling to the place of case study and attending lecture

References

Abdulle, A. S., Zainol, Z., & Ahmad, H. (2019). Impact Of Computerized

Accounting Information System On Small And Medium Enterprises In
Mogadishu , Somalia : The Balance Scorecard Perspectives. 5, 159–165.
https://doi.org/10.35940/ijeat.E1023.0585C19
Dufera, A. (2010). Financial Performance Evaluation (A Case Study of Awash
International Bank (AIB). Journal of Emerging Market Finance, 11(1), 109.
For, E. (2013). no t t o N be C re R pu T bl is h no t t o N be C re R pu T bl is h.
Computerised Accounting System, 39–47.
Magdalene, M. (2011). Computerised Accounting and Financial Reporting a Case
Study of Stanbic Bank Garden City Branch a Research Report Submitted To
Makerere University Inpartial Fulfilment of the Requirement for the Award of
Thedegree of Bachelor of Commerce. 07.
MASANJA, N. (2020). The Impact of Accounting Information System on the
Financial Performance in Selected Private Companies in Arusha, Tanzania.
SSRN Electronic Journal, January. https://doi.org/10.2139/ssrn.3642377
Omondi, M. M. (2013). Factors Affecting the Financial Performance of Listed
Companies at the Nairobi Securities Exchange in Kenya. 4(15).
Shiraj, M. M. (2015). The impact of using computerized accounting systems (CAS)
in financial reporting among SMEs: (Special Reference to the South Eastern
Region, Sri Lanka). 5th International Symposium – 2015 South Eastern
University of Sri LankaAt: South Eastern University of Sri Lanka, 1–9.
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 APPENDICES

APPENDIX I: QUESTIONNAIRE

Dear respondent

My name is Yassin H, Mohamed, ID 0012354, A student of SOMALI

INTERNATIONAL UVERSITY(SNU). pursuing a bachelor’s of civil engineering.
We are currently carrying out a study about “Computerized accounting and financial
performance, a case study at IBS bank Mogadishu-Somalia.” as a requirement for the
award of bachelors of civil engineering. I humbly request you to be one of the
participants in this study and your cooperation will be of great importance to this
study. Your answers will be kept with utmost confidentiality.

SECTION 1: Demographic characteristics of respondents

1. Gender of respondent
Male
Female
2. Marital Status
Married
Single
Divorced
3. Educational level

Certificate
Diploma
Degree
Masters
4. Age of the respondent
Below 20
Between 20-39
Between 40-59
60 and above

Score Response Mode Description Interpretation

1 Strongly agree You agree with no doubt at all Very satisfactory

2 Agree You agree with some doubt Satisfactory

3 Neutral You are not sure about any None

4 Disagree You disagree with some doubt Fair

5 Strongly disagree You disagree with no doubt at Poor

all

Instructions: Please write your rating on the space before each option which
corresponds to your best choice in terms of level of motivation. Kindly use the

scoring system below:

Section 2: The role of computerized accounting

No Statement 1 2 3 4 5

1 Computerized accounting has speed and accuracy

and free timel.

2 Computer system enhances increased levels of

speed of financial information sharing among

stakeholder.

3 Computerized accounting saves a lot of time where

in, the employee has to record the transactions

Section 3: The factors that influence financial performance

No Statement 1 2 3 4 5

1 Leverage refers to the proportion of debt and

equity in the capital structure of a firm

2 Liquidity measures the ability of the business to

meet financial obligations

3 Liquidity can be analyzed both structurally and

operationally

Section 4: Relationship between computerized accounting and financial

performance

No Statement 1 2 3 4 5

1 Positive relationship between computerized

accounting systems and financial performance

2 computerized accounting systems improve

management activities such as decision making and

controlling.

3 Computerized accounting departments in business

create audit trail

Thanks