ACCOUNTING AS A TOOL FOR EFFECTIVE MANAGEMENT FUNCTION IN AN ORGANIZATION (A CASE STUDY OF AKWA SAVING AND LOANS LIMITED UYO)
1.1 BACKGROUND OF THE STUDY
Accounting plays a vital role in an organization ensuring effective management function which contributes immensely to the success for an organization. The accounting department and / or board of directors with information before a decision could be taken.
Decision making is an important and necessary activity of every business organization, large art small. A few decision are rather routine and can be made quickly after consulting only a few complex and serious large range problems.
In order to get through these a great deal of accounting information is need before a decision failure of the organization and its destiny.
Today accounting plays the most important and accurate role in all organization both small and big business organization depends on accounting information available to them to make proper decision to help them achieve their goals.
It is therefore wise to plan ahead of time with the adequate and reliable financial data which account will provide are available. The researcher shall also examine several ways in which accounting has became role for management and owners of the organization and how the business men depend on the information provide by the accountant as the basis for policy information and decision making.
1.2 STATEMENT OF THE PROBLEM
There has been high incidence of failure in business organizations, banking institutions, educational institutions because of poor management decision.
Failure in organizations also as a result of poor planning which arises from inaccurate data generated in the organization. If an organization is associated with poor planning, poor decision making, law productivity is inevitable. When the management and board of directors are not properly informed they are band to make mistakes and this may lead to the collapse of the organization.
1.3 OBJECTIVE OF THE STUDY
The researcher conducts this research study so as to direct the minds or all those who may wish to use this research work including the entire staff of the company understudy towards the achievement of the following objectives:
- To determine the extent of which accounting functions ha helps the top management executives in both private and public organizations to make up good decisions.
- To find out factors that affect the accounting department preventing them from carrying out their functions as expected.
- To determine the assessment of government (federal and state) cognition of they of accounting in the nation economy.
- To examine government policies which promote accountability in public and private enterprises in Nigeria.
1.4 RESEARCH QUESTIONS
In order to arrive at the possible findings some questions were asked as follows:
- How professionally qualified and competent are the accountants in Akwa Savings and loan limited Uyo?
- Are the facilities equipment and instruction also available in these banks adequate for the account?
- What are the factors that affect accounting department in these bank the makes it not loss function effectively as expected?
- Is the general instructional aids conduction for the staff in Akwa Savings and loan limited?
1.5 SIGNIFICANCE OF THE STUDY
At the completion of this research work a lot of people would derive benefit from it with the in-dept assessment of the role that accounting plays in a better management function, government would benefits from this research work because is helps them to do their budget planning.
Business organization would also benefit from this research, it would also be benefit from overall success or otherwise of any business enterprises which depends on the accounting information supplied to the management.
This project would help other students of accounting as a source of information in their academic works.
1.6 SCOPE OF THE STUDY
This study is Limited to Akwa Savings and Load Limited Oron Road Branch, uyo, with references to accounting as a tool for effective management function in an organization.
1.7 LIMITATION OF THE STUDY
Due to the high cost of fuel, the research could not travel to other branches for the availability of needed materials time constraint from the respondent also limited the study.
1.8 DEFINITION OF TERMS
Some terminologies about the accounting functions aid to effective administration could be wrongly under stood.
This is because much of these terminologies and their meaning have specific usages or application to avoid such misconceptions, the researcher has decided to explains some terms as used in their researcher study.
Accounting to (AAA) American Accounting Association defined accounting as the process of identifying, measuring and communication economic information to permit informed judgment and decision by users of the information.
According to oxford dictionary budgeting is the amount to money that spent wisely on a particular purpose.
Management is the effective and efficient utilization of human and non-human resources or achieves organizational goals (Onuoha. 1991).
Public sector includes all organization which are not privately owned but which operated and/or established by government on behalf of the general public in other word. Public sector consists of organization where control lies in the hand of the public (Ama, 2000).
This is defined as “the process by which information is passed between individual and/or organization by means of previously agreed symbols” other words, communication is the exchange and/or sharing of meaning and data (Libby. 1997).