Effects of accounting information systems on decision making in banks in Nairobi Kenya

Lekorere, Milly Napunyu

Effects of accounting information systems on decision making in banks in Nairobi Kenya

Date

2022

Authors

Lekorere, Milly Napunyu

Publisher

Strathmore University

Abstract

It is worth pointing out that the investigation targets to consider the correlation between AIS and better decisions in in the banking sector in Nairobi and its relation to performance. Public financial statements do not adequately reflect the company's assets and liabilities owing to inefficiencies. Hence, the study analyzes how management collects, saves, and secures important accounting documents based on the integration of an automated system. The study investigated four objectives. The first was to determine the relevance of AIS and how it can be adopted in the banking sector Nairobi. Also, it was critical to determine fundamental elements and variables that are considered while making decisions. Thirdly, the investigation was designed to evaluate possible relationship between how banks make their decisions and the accounting information system. Consequently, it was vital to determine how AIS may be applied to improve the decision-making process and overall performance of Nairobi-based financial institutions (banks). The scope of the study was Nairobi County. The study employed an explanatory research technique. Numerous in-depth interviews with banking key informants assisted in contextualizing the study's results. As a result, the researcher felt obligated to meet face to face with respondents and ask crucial study-related questions. The study identified, classified, and presented the results in light of the project's distinct objectives and research questions, with data analysis commencing with concise and broad summaries of observations and conclusions made throughout the data collection phase. The study was done utilizing basic statistical percentages and frequencies, and the findings were shown in tables and charts. The study found out that adoption of AIS in financial sector would be fundamental to the well-being of these organization and it affects how they perform. The Accounting Information System (AIS) is a critical component of every banking firm. Each financial institution is self-contained inside its own accounting system(AIS). They depend on the aid of the Department of Information Technology to carry out their responsibilities (IT). When a firm does not often change workers, time and money are saved on recruiting and training new employees. Recognize that if they are understaffed, downtime may have a substantial effect on their business's profitability; having a low turnover rate is crucial. All of these responsibilities, which include posting job adverts, holding interviews, and training new staff, need money and time. Managers, the research asserts, act under preset boundaries and criteria, and predictable occurrences result in preprogrammed judgements. The challenges themselves, as well as their resolutions, are well- structured. Established policy directives, regulations, and procedures are used to resolve problems and carry out decisions. The report recommends conducting similar investigations in other firms to compare their conclusions to those of this research.