The relationship between automated accounting and the quality of financial reporting in Kasese district local government. A cross-sectional study.
DOI:
https://doi.org/10.64792/4at0cq28Keywords:
Automated Accounting, Financial Reporting, Internal Controls, Audit TrailAbstract
Background: The automation of core accounting functions is a cornerstone of modern Integrated Financial Management Systems (IFMS). This study assessed the relationship between automated accounting processes and the quality of financial reporting.
Methods: A mixed-methods, cross-sectional approach was used. Data was gathered from 100 respondents, predominantly experienced via questionnaires and interviews with key informants from the Finance and Audit departments. Data was analyzed using SPSS for correlation and regression.
Results: In this study 71% are male and 29% female, 48% aged 36-45, 56% with 6+ years,and 78% hold a degree. A strong positive correlation was found between automated accounting and financial reporting quality (r = 0.712, p<0.01). Respondents reported high automation in transaction recording (Mean=4.298) and system integration (Mean=4.373). However, significant challenges persisted in automated report generation (Mean=2.954), updating payrolls (Mean=2.380), and enforcing segregation of duties (Mean=2.745).
Conclusion: Automated accounting significantly enhances the accuracy and auditability of financial data, but its full potential is hampered by functionality gaps and user competency issues.
Recommendation: The district must enforce regular capacity building for accounting staff, and strengthen internal audit mechanisms to ensure data accuracy.
References
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Copyright (c) 2025 Zelina Mbindule, Dr. Muhammad Sendagi (Author)
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