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



This research work is aimed at ascertaining the various roles played by using computer in recording accounting information problems and prospects in the modern business world using Bendel feed and flour mill, Ewu, Edo state as a case study. The importance of using computer in recording accounting information will be apparent when considering the fact from the data that is gathered in the course of this work, from the related literature as well as, from interviews and discussions. Also questionnaires were distributed equally and collected which yielded or revealed that the use of computer in recording accounting information [played a positive role in initiating computer use in the modern business world. The information supplied by the Chief accountant in Bendel feed and flour mill Ewu, Edo state contributed to the success of the exercise. The statistical analysis that used in the study includes the hypothesis testing in which the questionnaire is analyzed under their related hypothesis and the use of chi -square test of homogeneity. It was also discovered that it is important among other groups of professionals needed for this implementation of the exercise. Therefore, they formed the pillar on which any successful establishment rests upon. We recommended that the use of computer in recording accounting information should be give a free hand in implementation exercise in order to enhance the importance of the use of computer in recoding accounting information.

Chapter One



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.


The problems of computerized accounting and computer are as follows:

  1. 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 because it’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.
  2. 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
  3. 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.
  4. 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
  5. 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.


This research work on “The use of computer in recording accounting information, problems and prospects” is to investigate or require for the following:

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.


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:

  1. What made individuals, firms and government adopt computer system?
  2. What has been the effect of the use of computer on old and new staff?
  3. ‘‘Routine clerical work” and “Data processing” which is more economical?
  4. What improvement has computer made to the general accounting system in the firm and country?
  5. What are the problems that generate from the use of computer?
  6. What are needed to make computer use effective?
  7. What effect has the use of computer in the labourmarket?
  8. In modern accounting, can computer be left out in recording information?


The following hypothesis shall be treated in the coursed of carrying out this research work:

HO: There is no significant relationship between the electronic data processing approach and the manual system approach.

Hi: There is significant relationship between the electronic data processing approach and the manual system approach.

HO: Computer has no positive effect in recording accounting

Hi: Computer has positive effect in recording accounting information.

HO: Information from the computer is not always correct, reliable, and accurate.

Hi: Information from the computer is always correct, reliable, and accurate.

HO: Not all employees have access to programmed data.

Hi: All employees have access to programmed

HO: The use of compute has not cause unemployment.

Hi: The use of compute has cause unemployment


The significance of this study cannot be over-emphasis because of the nature of modern day organizations. It is embarked on to poultry the importance of computer of an organization with peculiar reference to modern accounting system. These importances are stated down below:

  1. The importance of this study is to make the accountants and the auditors realize that computer should not see as an enemy but as an aid to them and their business functions.
  2. This study is to help remove the in concept concealed by the junior workers that computer introduction will lead to retrenchment of workers which is a fallacy because without human being, computer cannot work or operate.
  3. This research work will help disclose the benefits of computerized accounting system with the understanding that if the third world countries like Nigeria can undertake this system, they can compete with the advanced countries.
  4. This will also help see accuracy and efficiency of work carried out as well as increased productivity.
  5. This research work will also help other renders and researchers to widen their scope of knowledge academically, occupationally, socially and economically as a base for other research work.



This project is designed to cover the use of computer in recording accounting information by individuals, firms and government. But generally, business organizations were concentrated upon with a case study of Bendel feeds and flourmill, Edo state.

However, particular attentions were to the following areas.

  1. Application and use of computer in financial accounting.
  2. The use of electronic computer in management decision making.
  • The advantages derived in the use of computer.


It is the researcher’s desire to carry out an elaborate research work on the selected topic for accuracy, reliability and efficiency. Also as an indispensable data base for interested person or groups of persons. But the following difficulties brought limitation to be:

  1. LACKS OF COOPERATION FROM THE RESPONDENTS: The reluctance of the officers of the organization involved to attend to the researcher limited the researcher in getting full details.
  2. FINANCE: Inadequate finance was a core problem for the researcher and this adversely delayed the progress of the work.
  3. SECRECY: Some information needed by the researcher is tagged “Confidential” and this limited him from getting the information.
  4. TIME:The time available to complete and submit this research work is too short; as such the researcher is limited to elaborate research.


The research work on the use of computer in recording accounting information would have cover the importance it has contributed to individuals, firms and government but, due to time availability, finance, strenuous academicals, works all these sectors mentioned were not reached, therefore, the researcher is limited to only business organization [firms] with a case study of Bendel feeds and flour mill, Ewu, Benin city.

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  • Released

    February 14, 2020

  • Last Updated

    February 14, 2020

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