The summary of findings is done according to the objectives of
the study by taking one objective after another.
The first objective of the study was to assess the effective
and efficient use of source document by Inyange in its bookkeeping system. As
it has been seen, the company uses source documents in its transactions
recording process to insure the accuracy of its accounting information. We have
noticed that the level at which inyange uses the source documents is not
sufficient to justify each and every transaction recorded in the system while
processing its financial information.
The second objective of the study was to assess whether the
accounting system used in small and medium size enterprises specifically in
inyange follows the general accepted accounting principles. A 100% of the
respondents agreed that the inyange's accounting system complies with the GAAP
but 80% said that the level of compliance is between 25 to 50%. This indicates
that compliance with GAAP is not enough as the GAAP requires at least more than
75% level of compliance. The study revealed that there is some principles which
are not followed in inyange's accounting system while processing the data like
the principle of separate entity, principle of full disclosure, principle of
conservatism, principle of legal aspects, principle of consistency and the
principle of periodic costs matching and revenues.
The third objective of the study was to study the functioning
and major problems of accounting system of inyange industries. The study
revealed that accounting system of inyange is computerized and sage 100
accounting software is used to record orb process transactions in the system.
This computerized accounting system is of paramount important of a business
organization like inyange to help the company plan, organize, coordinate,
manage and control its operations or activities efficiently and effectively.
The study also revealed that the accounting system of inyange
faces the major problems like lack of qualified personnel to operate with the
system, lack of enough financial resources to funds well being of the
accounting system, lack of budget for the effective design of accounting
system, lack best doing of the company itself to improve its accounting system,
a weak internal control system to prevent errors and fraud in the system
operations.
The fourth objective of the study was to examine the quality
and qualification of workers working with accounting information in inyange
industries. The study revealed that the quality and qualification of inyange's
chief accountant are not sufficient as he is undergraduate level and the
requirements are professional level for a person to be a chief accountant in a
business organization. This worker has many different responsibilities meaning
that there is no separation of duties in the company and this is more dangerous
for the company' s business operations as it is difficult to determine the
person to be liable for the wrong actions done.
The fifth objective of the study was to examine the flow of
accounting information in different levels of management of inyange industries.
This study revealed that the accounting information is needed and used in all
levels of management of inyange industries during their decision making
process. This shows that if the accounting system provides wrong information,
it will affect the whole operations of the company as it its basis of making
decisions at all management levels.
The last objective of the study was to give suggestions and
recommendation for the better design of effective accounting system, better use
of accounting information in order to improve the company's business operations
and achieve its set objective.
