ABSTRACT

This study is on the impact of effective accounting information system in fostering customer services and efficiency. The importance of accounting information cannot be overemphasized, Accounting records and statements are very essential tools in the achievement of firmís goals. This research work was driven by certain objectives which include, to examine the efficiency of accounting information system in use in the banks and to ascertain the various approaches for presenting this information system that is being used by banks. Survey and sampling method were used for data collection. The relevant sources of data drawn for this work include questionnaire, interviews, textbook and journals Acts. The tools employed for data analysis were table, simple percentage method while the proposal hypothesis was tested with the chi-square (x2) statistic. Based on the research carried out, the researcher found out that the problems that led to ineffective use of accounting information in bank are the inconvenience customerís encounter in the banks due to poor accounting information system, poor communication system and lack of good publicity of available product services To this end, the researcher recommended that the management should employ other modern and more reliable means of communications such as the internet and email, so that information will flow smoothly and continuously.


CHAPTER ONE

1.0†† INTRODUCTION

1.1†† BACKGROUND OF THE STUDY

††††††† Accounting information has made a very great contribution towards the success of organizations in delivery of services and planning. The principal point of discussion is the minimization of time wastage and efficiency by the proper use of accurate accounting information in rendering services.

††††††† There are ever increasing demand for accounting information especially in the banking industry due to charges in environmental factors with a corresponding increase in the scope of accounting information business environment where the customers are more important than anything else, management need to be in a position to attract new customers and sustain the interest of old ones. Management must possess enough technical knowledge and the ability to do some thing well to produce and compete favourabley with their competitors.

††††††† Banking is not left aside in this competitive race in business. Customers, depend on the availability of accurate and relevant information to make wise decision on where to operate especially with the crisis in our banking sectors. Banking business like most other business today, is information driven especially since the invention of computers in the society.

††††††† Information mentioned above is control to all economic transaction and must be accurately and timely rendered, because of this obligations taken by the banking industry to satisfy customers needs, there are needs to assemble the best professional, from a diversity of fields, an experts in personnel affairs should be in control, a trained qualified and experienced marketer must chart the organizations marketing plan. Qualified production expert will often be found best suited for managing production.

††††††† Therefore in order to satisfy customers in the banking sector. Accounting information will be highly needed. According to Rank: L.J (1987:8) Accounting information is seen as ďan indispensable asset, a resource, a commodity with social economic political value with the adoption of information technology, accounting information has been defined ďas a systematic continuous attempt to increase the state of profitable growth rendering of services to customers and other interested group like the managers, who use it to know the most effective way of promoting business and pricing new products as to satisfy customers.

††††††† Accounting can be looked at as the heart of management system. Accounting information system therefore is a financial information system in an enterprise accounting system which is at least a past of financial character.

††††††† To management, accounting information system helps for the effectiveness and efficiency of using it scarce resources to achieve the goal of the organization while the customers it helps them tackle the following questions.

a.           Is the firm in a position to meet customerís obligations?

b.           Are the services rendered by the firm satisfy customers needs.

1.2†† BRIEF HISTORY OF FIRST BANK OF NIGERIA PLC

††††††† The case study, first bank of Nigeria plc is located at 11/12 Assumpta Avenue Owerri. Itís one of the branches of First Bank in Owerri Municipal. First Bank as one the pioneer banks in Nigeria was founded in 1894 by SIR ALGRED JONES shipping migrates from Liver Pool. The bank commenced business in office of ELDER DEMPTER and company in Lagos. It was incorporated as a limited liability company in Liver Pool and has started business under the corporate name of THE BANK OF BRITISH WEST AFRICA (BBWA) with a paid up capital of ER 2000 sterling. It commenced business upon absorbing its predecessor, the African Banking Corporative which has been established earlier in 1892.

††††††† However, in 1991 the name was finally changed to First Bank of Nigeria Plc with a remarkable growth in the share capital (from N107,599 million in 1993 to N520,309 million by march 1999).

††††††† Presently, first bank of Nigeria can boast of 311 branches spread all the country. This shows that it has maintained the largest network of branches in Nigeria banking sector.

††††††† At the end of August 2006, the bank had assets totaling 650 billion naira or $5 billion dollars. The bank was also the most highly capitalized stock on the Nigeria stock exchange and had about 10 billion outstanding shares. It has a subsidiary in the United Kingdom, FBN bank (UK) which has a branch in Paris. They also has representative offices in South African and China, the company was named the Best bank in Nigeria by global financial magazine in September 2006 the firmís auditors are price water house cooper (chartered Accountants).

††††††† The firm has solid short and long term ratings from Fitch and the global credit rating company partly due to its low exposure to non-performing loans. The firmís compliance with financial laws has also strengthened with the economic financial crimes commission giving it a strong rating.

††††††† First bank of Nigeria plc has paid a N24 billion dividend at N1.20k per share, for the financial year ended March 31, 2008.

††††††† February 22, 2011 First Bank of Nigeria plc appointed Michael Oyebola as Senior Vice President and head asset management of its investment banking and asset management business (IBAM). Observation and interview show that the company has contributed immensely to economic development, which includes creation of job opportunities rendering satisfactory services and granting credit facilities.

 

1.3††† STATEMENT OF†††† PROBLEM††††††††††††† †††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††††

1.†††† Accounting information at the development stage has probably resulted in delays in attending to customer and eventually lost of customers at first bank plc customers.

2.†††† Spend long period of time on the line before making deposit or withdrawal. This likely turned customer away to other banks.

3.†††† Furthermore inefficient application of accounting information due to lack of well trained staff might have led to poor banking services in first bank of Nigeria plc. Often timeís management did not deem it necessary sending its workers to service training due to high cost. As a result of this it caused inefficiency in service execution.

4.†††† Poor communication, publicity and understanding of the products sold by first Bank plc by their customers. Often times customers are not aware of how to go about using the products provided by there banks. For example the western union money transfer, automated Teller machines (ATM), the electronic fund transfer (EFT) and First bank value card used by bankers are not known to some customers. Most of these services are not rendered in all the banks branches mostly in the rural areas thereby creating more, rooms for poor banking services to customers.

1.4††† OBJECTIVES OF THE STUDY

††††††† The research study is meant to achieve the following objectives.

i.             To examine the efficiency of accounting information system that is being operated by banks.

ii.            To ascertain the various approaches for presenting this information system that is being operated by banks.

iii.          To ascertain weakness in the firms accounting information system.

iv.          To determine that good accounting information system can successfully be employed in the efficient rendering of services to customers in First Bank of Nigeria Plc.

1.5††† RESEARCH QUESTIONS

††††††† The following questions were used to formulate the research hypothesis.

i.             Is accounting information essential in the realization of efficiency in serving customers?

ii.            Can customer services and efficiency boost the level of accounting information system?

iii.          To what extent or degree does the availability of accounting information system affect customer service efficiency?

1.6††† FORMULATION OF HYPOTHESIS

††††††† The hypothesis below is formulated to cover the impact of accounting information system in fostering customer service and efficiency. We have two types of hypothesis; Null hypothesis (Ho); expresses an opinion in a negative form and Alternative hypothesis (Hi), express an opinion in a positive form.

HYPOTHESIS 1

Ho:†† Accounting Information is not essential in the realization of efficiency in serving customers.

Hi:††† Accounting Information is essential in the realization of efficiency in serving customers.

HYPOTHESIS 2

Ho:†† Customer service efficiency cannot be boosted by increasing the level of accounting information system.

Hi:††† Customer service efficiency can be boosted by increasing the level of accounting information system.

HYPOTHESIS 3

Ho:†† There is no relationship between the level of accounting information system and customer service and efficiency.

Hi:††† There is a parallel relationship between the level of accounting information system and customer service and efficiency.

HYPOTHESIS 4

Ho:†† Customer is not concerned about the level of accounting information system of the bank as it relates services efficiency.

Hi:††† Customer is concerned about the level of accounting information system of the bank as it relates service efficiency.

1.7††† SIGNIFICANCE OF THE STUDY

††††††† The study would educate the bankers on how best to adopt the modern technological changes as well as gave an in sight into information system used in bank.

††††††† It will also aidbank executives and employers on the need for all managerial level to be conscious of Accounting information in this modern business world, the study of accounting information will help the school to know how to keep proper accounting records that will help in making decisions on how to measure performance to plan and control operation of the school, it is an indication of school management efficiency, it also aid the state on how to use the information to impose and collect taxes to regulate certain business activities and to plan and execute certain projects. To the student it helps them to understand more about the practices and principles of accounting information. It also helps in research purpose, like assignment and project work. As the case may be, the study can be seen as an indicator to nation to show the difference between a countryís income and expenditure, also budgeting.

1.8††† SCOPE OF THE STUDY

††††††† For effective research on the topic: ďThe impact of effective accounting information system in fostering customer serve and efficiencyĒ. The researcher was restricted to FIRST BANK OF NIGERIA PLC, OWERRI, IMO STATE.

1.9††† LIMITATION OF THE STUDY

††††††† The limitations of the study are hindrance or constraints experience by the researcher in the course of her study. The following are some of the problem encountered by the researcher on the course of her study.

a.           The most difficult problems encountered by the research was that of restriction of movement of students in and out of the institution and the researcher has to spend a lot of time queuing up in attempt of to sign exist before going out for the research work.

b.           The attitude of the respondents was also a problem because explanation and guidance were needed in the answering of the questionnaire.

c.           Finance was also a problem as most information was sourced through the internet and the cost of getting the necessary materials needed for the research work.

d.           Time was another limited as the researcher had sleepless nights to make sure that the research work is in accordance with the steps stated by her supervisor.

1.10DEFINITION OF TERMS

††††††† Accounting information: Accounting information can be defined as a set of processed data like the balance sheet, profit and loss account, cash flow statements and income statements etc, prepared in accordance with the guidelines and procedures for its effective use in making decisions.

INFORMATION: Information can be referred to whatever that is communicated to another in inform of processed data for effective planning and coordinating of the firms activities.

ACCOUNTING SYSTEM: Is a set of records procedures and equipment that routinely deal with the event affecting the financial performance and position of the organization.

CUSTOMER SERVICE EFFICIENCY: Customer service efficient is the prime goal for service oriented organization, such as contact canters, service desks and call centers. It is also an important objective for any organization, since it encompasses all relations and transaction with customers or clients customers servicers can be optimized and more efficient through the prudent choice of tools and the application or right skills.

EFFECTIVEAC COUNTING: Effective accounting a base requirement of company, tax accounting service is also very crucial in any private or government sector outsourcing book keeping service provides accurate and secure book keeping and accounting services to private public and government sectors. A high quality services are delivered by a high experienced accountants.


 

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