CHAPTER I

THE PROBLEM AND ITS BACKGROUND

Introduction

The 21st century is the new age of technological revolution and innovation, and

information technology has outrun other industries in this field. Accounting is the art of

recording, classifying, and summarizing in a significant manner and in terms of money,

transaction and event which are, in part at least of financial character, and interpreting the

results thereof. Accounting information system measures processes and communicates

financial information about an economic entity (Salehi M., Torabi E., 2012).

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 Conceptual Framework

Research Paradigm

Demographic Profile of
the respondents:
Gathering Data through
 Age the form of:
 Gender
Assessment of
 Position Questionnaires
Accounting Software for
Accounting tasks Analysis of Data Government Agencies.
they usually perform Gathered
using software: Interpretation of Data


Process Output
Input

Figure 1 Research Paradigm

According to Figure 1, the flow of the assessment will start with the input of the demographic profile
through the software used by the government agencies. These will be conducted through a survey,
which is prepared by the assessor and checked by the adviser. The output of this research will present
statistical analysis on the assessment of the software.

Statement of the Problem

The purpose of this study is to add to the body of knowledge about the impacts of Accounting Software
used by the selected government agencies that can be useful for CPA’s, Future Accountants, BIR and
other private and public sector. The following questions such problems shall be answered:

1. What is demographic profile of the respondents in the study?

2. What are the different accounting software used by the selected government agency in
Mandaluyong City?
3. What are the advantages of using this accounting software in the performance of selected
government agency in Mandaluyong City?

Significance of the study

This study will be useful and significant to the following persons and government agencies:

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To the Future CPAs. This will help the future CPAs in dealing with financial records and transactions. The
purpose of this study is to provide information about accounting software used by government agency.
This will also help them to know what are effectiveness of using accounting software.

To the CPAs or Accountants. This study is important to simplify the handling of a company’s financial
transactions and keep all finance related activities accurate and efficient. It will help them to maintain
the company’s financial records error-free, cost is reduced and compliance with the requirements is
properly managed.

To public and private sectors. This study is important for them to have a fast and efficient system that
can be useful for all transactions. This also can be a benefit for the users and subscribers of the
companies.

To Bureau of Internal Revenue (BIR). This study is important in enhancing their accounting procedures
and transactions. This is also important with regards to the compliance of BIR requirements.

Scope and Limitation

This study focuses on the on the Assessment of Accounting Software used by the government agencies.
Accounting software are frequently used to type record and process accounting transaction within
functional modules such as accounts payable, accounts receivable, journal, general ledgers, payroll, and
trial balance. The study utilized the usefulness of the software used by the accountants. All the data that
we gathered will be from the perception of the respondents.

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