Accounting Information Systems and Financial Performance of Commercial Banks in Uganda: A Case Study of Dfcu Bank, Main Branch Kampala

ABSTRACT The study objective of the study was to determine the effect of accounting information system on the financial performance of commercial banks in Uganda using a case study of DFC bank, Kampala. The objectives were to determine the effect computerized accounting information system on financial performance of commercial banks. To assess the effect of manual accounting information systems on financial performance of commercial banks and To determine the effect of internal accounting system control on financial performance of commercial banks. The study was conducted in DFCU bank from 40 respondents who were the employees. The data was collected using closed ended questionnaires, the analysis took the use of descriptive statistics of mean and standard deviation and correlation analysis. The study findings indicate that there is a significant relationship between computerized accounting information systems on financial performance of commercial banks, since the sig. value (0.048). There no significant relationship between manual accounting information systems on financial performance of commercial banks, since the sig. value (0.386). There is a significant relationship between internal controls accounting information systems on financial performance of commercial banks, since the sig. value (0.039). The study concluded that having proper accounting systems of computerization contribute to financial performance of DFCU bank. The results also indicate that the manual accounting system usage was having a low contribution or influence to financial performance of DFCU bank. The study on the third objective concludes that the proper accounting internal systems enabled the organization to work for profitability of the organization. The study concludes that accounting information system in DFCU bank contributes to financial performance of the bank though loopholes in accounting information are viewed and seen. The study recommends that computerized accounting systems need to be enhanced, developed and improved in order to enable the organization attain its proper functionality and accountability. Computerized systems need to be enhanced with the mode of the proper software that enable proper decision making in the organizations. The organization should increase the use of accounting information in marketing decisions in bringing in new product into the market, increasing sales volume and in taking better marketing strategies. On the third objective, the management need to adequately identify and manage duties including providing means to the operations of the organization through well determined duty operations and provision of an adequate auditing mechanism for the organization.