THE ROLE OF INFORMATION TECHNOLOGY IN THE FINANCIAL MANAGEMENT OF AN ORGANIZATION

TABLE OF CONTENT

Title page

Approval page

Dedication

Acknowledgment

Abstract

Table of content

CHAPTER ONE

INTRODUCTION

1.1        Background of the study

1.2        Statement of problem

1.3        Objective of the study

1.4        Research Hypotheses

1.5       Research question

1.6        Significance of the study

1.7        Scope and limitation of the study

1.8       Definition of terms

1.9       Organization of the study

CHAPTER TWO

LITERATURE REVIEW

2.1   theoretical review

2.2   Conceptual review

2.3   empirical review

CHAPETR THREE

RESEARCH METHODOLOGY

3.1        sources of data collection

3.3        Population of the study

3.4        Sampling and sampling distribution

3.5         Area of the study

3.5        Validation of research instrument

3.6        Method of data analysis

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS AND INTERPRETATION

4.1    Introductions

4.2    Data analysis

CHAPTER FIVE

5.1    Introduction

5.2    Summary

5.3    Conclusion

5.4    Recommendation

Appendix

Abstract

Information technology had carved across all the aspects of modern day activities ranging from small to medium and medium to large applications and operations. The trends of human centric systems which are more common and popular at times are now slowly and gradually diminishing from our public and private corporate establishments. The new , most versatile, popular, advent, efficient technique wherein the basic approach is computer centric modus operandi have overridden almost all the modern day industrial practices from very basic step of requirement elicitation to final product outcome. Information and Communication technology is this computer centric system. ICT has increased efficiency, reliability, effectiveness, performance and other characteristics of modern day commercial operations. ICT has increased and renovated financial structure both in quality and quantity.

                                        CHAPTER ONE

                                        INTRODUCTION

1.1 Background of the study

With the emergence of Information and Communication Technologies (ICTs) and e-governance the possibility of improvement in efficiency and effectiveness of financial management looks more in comparison to the traditional manual system. The information and communication technology is a centre of expertise in ICT business intelligence, labor market research, policy development and workforce solutions. ICT enables industries to develop and maintain a competitive edge in the global market to practice its services to rejuvenate the innovative trends. ICT refers to a wide range of computerized technologies that enables communication and the electronic capturing, processing, and transmission of information. These technologies include products & service such as desktop computers, laptops, hand-held devices, wired or wireless connectivity, business productivity software, data storage & security, network security, other related protocols, etc. (Ashrafi and Murtaza, 2008). The emergence of ICT has opened multiple facets of enterprises that collectively interact with geographically dispersed workstations to carry out business activities more efficiently, over digital networks (Buhalis, 2003). ICT has contributed openly to eliminate time, distance and space constraints in order to furnish the Business activities with ease and efficiency by integrating the capability of high speed devices with high speed communication links carrying multimedia information. ICT deals with the collection, storage, manipulation and transfer of information using electronic means. Communication technology refers to the physical devices and software that link with various hardware components and transfer data from one physical location to another. Application of ICT to enhance the performance of organization of all types around the world and do not only help to cut cost and improve efficiency (Spanos et al. 2002). In conclusion ICT has now being accepted as the backbone for all organizations ranging from small to big, public to private, micro to macro scale industries, education to finance etc. ICT has the ability to enhance, coordinate and control the operations of many organizations and can also increase the use of financial management. (Attom) Business, especially SME’s thrive well when their business process are recorded and reported timely. Generally ICT is considered one of the most reliable means of providing a strong platform for effective system of internal control over financial reporting. It stands to reason that a sound ICT system provides a sure and guarantee medium of financial information delivery that covers the entire accounting cycle of the firm. ICT creates conducive atmosphere that integrates all financial transactions with the help of accounting software to generate financial report which thereto, would have very difficult to prepare. O’Brien and Marakas (2010) hinted that accounting information system are the oldest and the most widely used information system in business. Computer-based accounting system record and also generate reports on cash flow through an organization on a historical basis and produce important financial forecast of future conditions. ICT has therefore contributed a lot in eliminating the problem faced by SMEs in generation of accurate accounting information. Hence, SME business and operators with significant ICT deficiencies are most likely to face the problem of misstated financial information. Preece (2003) stressed that the exploration of ICT tools and their integration with customer relationship management applications are expected to bring several benefits such as improved product and service quality, customer satisfaction, higher productivity, improved financial performance and creation of barriers to entry, enhanced convenience and customer service through the advent of new product and various delivery/service channels. The information and communication technology is a centre of expertise in ICT business intelligence, labor market research, policy development and workforce solutions. ICT enables industries to develop and maintain a competitive edge in the global market to practice its services to rejuvenate the innovative trends. ICT refers to a wide range of computerized technologies that enables communication and the electronic capturing, processing, and transmission of information. These technologies include products & service such as desktop computers, laptops, hand-held devices, wired or wireless connectivity, business productivity software, data storage & security, network security, other related protocols, etc. (Ashrafi and Murtaza, 2008). The emergence of ICT has opened multiple facets of enterprises that collectively interact with geographically dispersed workstations to carry out business activities more efficiently, over digital networks (Buhalis, 2003). ICT has contributed openly to eliminate time, distance and space constraints in order to furnish the Business activities with ease and efficiency by integrating the capability of high speed devices with high speed communication links carrying multimedia information. ICT deals with the collection, storage, manipulation and transfer of information using electronic means. Communication technology refers to the physical devices and software that link with various hardware components and transfer data from one physical location to another.

1.2 STATEMENT OF THE PROBLEM

Today, the world is enduring evolutions in universal economies and they are going forward quickly. These evolutions are due to the change of manufacturing-based economy into information-based one. On the other hand, business globalization among countries is expanding quickly. National markets have been influenced by foreign and international (multinational) companies. Trading companies trying to survive and maintain competition with other countries and companies must globalize their commercial thoughts and instruments. One of these competitions arenas is using the information technology. Undoubtedly, managers have a fundamental role in organizations’ and companies’ destiny and information has a great impact on the success of managers’ affairs and organizations’ performance; information which is correct, timely and updated and is provided by the universal expansion of Internet which uses this technology for information collection and dissemination. However, it is clear that IT by creating a wide web for information which records the smallest events and information helps decision maker managers to make decisions and plan by analyzing the updated data in the web to make a bright future for themselves and their organization. It is on this premise that the study becomes pertinent to examine the role of IT in the financial management of an organization.

1.3 OBJECTIVE OF THE STUDY

The main objective of the study is to examine the role of information technology in the financial management of an organization; to aid the completion of the study, the researcher intend to achieve the following specific objective;

1. i) To examine the role of information technology in the financial management of an organization
2. ii) To examine if there is any significant relationship between information technology and financial management

iii) To examine the impact of information technology in achieving transparency in financial management

1. iv) To ascertain the effect of information technology in achieving organizational efficiency

1.4 RESEARCH QUESTIONS

The following research questions were formulated by the researcher to aid the completion of the study;

1. i) Does information technology have any effect in achieving organizational efficiency?
2. ii) Does information technology have any impact in achieving transparency in financial management?

iii) Is there any significant relationship between information technology and financial management?

1. iv) Does information technology play any role in the financial management of an organization?

1.5 SIGNIFICANCE OF THE STUDY

It is believed that at the completion of the study, the findings will be of great importance to the management of organizations as the study seek to explore the benefit of information technology to the effective financial management of an organization; the study will also be of the great importance to the management profession as information technology will be of great importance in setting up an effective internal control system in an organization. The study will also be of great importance to researchers who intend to embark on a study in a similar topic as the study will serve as a reference point to further research. Finally the study will be of great importance to student, teachers academia’s researchers and the general public as the study will contribute to the pool of existing literature on the subject matter and also contribute to knowledge.

1.6 SCOPE AND LIMITATION OF THE STUDY

The scope of the study covers the role of information technology in the financial management of an organizations; but in the cause of the study, there were some factors that limit the scope of the study;

1. a) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study
2. b) TIME: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.
3. c) Organizational privacy: Limited Access to the selected inmate makes it difficult to get all the necessary and required information concerning the activities.

1.7 OPERATIONAL DEFINITION OF TERMS

Information technology

Information technology is the use of computers to store, retrieve, transmit, and manipulate data, or information, often in the context of a business or other enterprise. IT is considered to be a subset of information and communications technology.

Financial management

Financial Management is a vital activity in any organization. It is the process of planning, organizing, controlling and monitoring financial resources with a view to achieve organizational goals and objectives.

Organization

An organization or organization is an entity comprising multiple people, such as an institution or an association, that has a particular purpose. The word is derived from the Greek word organon, which means tool or instrument, musical instrument, and organ.

ORGANIZATION OF THE STUDY

This research work is organized in five chapters, for easy understanding, as follows

Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study. Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding.  Chapter five gives summary, conclusion, and recommendations made of the study

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