EFFECTS OF ACCOUNTING INFORMATION SYSTEM ON FINANCIAL PERFORMANCE OF MANUFACTURING FIRMS; A CASE STUDY OF ALPHA GRAIN MILLERS LIMITED IN NAIROBI.

Abstract

The research was directed by the succeeding aims; to obtain the outcome of the Cash Ledger System on the financial performance of Alpha Grain Millers Limited, to obtain the effect of the Cash Ledger System on the financial performance of Alpha Grain Millers Limited, to obtain the effect of the financial management system on Alpha Grain Millers Limited, to obtain the results of the Payment System Alpha Grain Millers Limited. Document review shows that SMEs are generally owned by owners, and often lack the necessary skills in financial management and financial management. Researchers used descriptive research formats. Population is based on 100 departmental staff from Alpha Grain Millers. The researcher obtained sample size using the Saunders formula to achieve a sample size of 80 respondents. The process of random sampling is used because the population is unequal and can be divided into groups or a line. Questionnaires used to collect information from respondents. The data collected was fully organized and considered for completeness and comprehension. Organized data is summarized and coded for easy classification to facilitate calculation. Analytical data is displayed using graphs such as pie charts, bar graphs and tables. The findings show that the Payment System takes a optimistic effect on monetary performance of Alpha Grain Millers Limited. The results show that data management system practices have a moderate impact on the financial performance of Alpha Grain Millers Limited. The study found that Cash Ledger System had a negative impact on the financial performance of Alpha Grain Millers Limited. The study concluded that there is a strong correlation between financial performance factors, such as Payroll System, Data Management System and Cash Ledger System at Alpha Grain Millers Limited. The study suggests that the adoption of computerized accounting information systems is recommended for all businesses to be able to report and manage the overall reporting record, as a business with a system shows an increase in investment other than that of the hand. This is necessary because there will be less human intervention in the compilation of records and reports, which will reduce discrimination and thus ensure the integrity and credibility of the report. Efficiency will be achieved through timely information processing, bulk processing and cost reduction which also improves performance.