The Contribution of Computerized Accounting System to Telecommunication Companies

1.0 Introduction

Globalization generated various changes in every business and governmental sectors and creates a path towards the modernization. The introduction of the computers and mobile phones are said to be the first modernized communication system. Since the computers and the use of the information technology can enhance the effectiveness in terms in operation of the organization, therefore, the same effectiveness can be also present in its application in every department.

1.1 Background and Statement of the Problem

Computerization can be the most basic yet efficient process that an organization can demand in their every department. In accounting department, it is common for the accountants to commit mistakes in recoding the accounts because of the similarities of most of the accounts. However, the application of a computerized system in the accounting can only lead the entire into one question, what contribution that the computerized accounting system can give to an organization?

1.2 Purpose and Significant of the Study

The underlying principle exhibits in the study is the turn of the organization in utilizing the best ideas that the technological support can offer. And the importance of the study is to deliver the idea that the application of computerized system can increase the effectiveness as well as efficiency particularly in accounting in telecommunication companies.

1.3 Scope and Limitations

In the beginning of the study, the telecommunication companies that centers in utilizing the technology has the power ability to emphasize their application of technologies to improve the areas of their internal management. The scope of the study is to highlight the link or route between the applications of computerized system in the process of accounting. Meanwhile, the limitation of the study is enumerate the set of accounts that are private for the organization

1.4 Time Frame

		Weeks
	Category	1st	2nd	3rd	4th	5th	6th	7th	8th
1	Literature Review
2	Investigation of related literature
3	Reading
4	Writing
5	Preparation for the Main Study
6	Identify the essential part of the study
7	Negotiation on the concern individuals
8	Design and data collection
9	Conduct the pilot of the study
10	Review of the methods and study plans
11	Conduct Study
12	Related work
13	Incorporating with the team
14	Write up of journals
15	Conduct the survey and interview
16	Transcribe the interviews
17	Write Up of Dissertation
18	Analyzing the data
19	Write the first draft
20	Get comments
21	Revision
22	Binding
23	Hand-in/Final

2.0 Literature Review

The operation in telecommunications companies is composed of various elements that contribute in their current monetary and non-monetary data. To satisfy the shareholders, the continuous change in the accounting system from cash basis to accrual accounting evolved in the computerized accounting system (Sharma, 2008). The computerization of the bookkeeping system can assist the financial and cost-accounting system, administration, and over all control in the accounting department (Borgstrom, Druker, and Sparrow, 2005). It is expected that the computerization or the application of the information system provides the technical basis to develop sound managerial decisions. In the long-run the provided information can be analyzed and then applied for the operation of the telecommunication companies (Küpper, 2002; Reiter, 2005). The computerization in the accounting system effectively manages all the accounts and monitors the transactions thus, provides additional support in the auditing facility upon the verification of the reported service revenues (BTRC, 2007). It is anticipated that the computerized accounting system also reduce cost while increasing the revenue. With the routines in the new accounting method, the adoption of the computerized process can spread throughout every department (Sharma, 2008).

2.1 Definition of Items

Accounting – a department in every organization that specializes the monetary and non-monetary flow and transactions.

Accrual Accounting – the computation in accounting that focuses on the accumulation of the specified accounts.

Bookkeeping – the process in keeping all the transaction wherein only the accountants and the business leaders can view.

Cash Basis – the term applied in the transaction that there is an exact amount of payment.

Computerized Accounting System – the new intervention in accounting system, which is probably, came from the idea of development.

3.0 Methodology

The suggested method in the study is the use of survey and interview, in which is believed to reach the valuable facts regarding the main topic. With the help of the combined methods, the study can draw the analysis and conclusion. Through survey, using the Likert Scale, the study can measure the perception of the participant and formulate effective recommendations based on the conducted interview.

3.1 Research Questions and Hypotheses

In the procedure of survey and interview, there are four identified questions that the study should emphasize.

1. What are the critical points in the accounting system of the organization?
2. Did the organization ever apply any technological intervention to increase the effectiveness and efficiency in the accounting department?
3. If any, what are the identified deficiencies in the application of the technology in the system?
4. What is the main focus of the accounting system in order to generate qualitative reports in the telecommunication organization?

Following to the questions are the three generated hypotheses that focus in computerized accounting system.

1. Computerization has an impact in the effectiveness and efficiency in accounting department.
2. The easy access on the accounting system has defects and thus, this will promote to the limit of the users for the privacy of all the accounts.
3. Maintaining the computerized system is expensive and the intricate design of the software might affect the results of the accounting process.

3.2 Population and Sampling Instrumentation

There are 100 of the participants, which may be the employees in the accounting department; the convenience method for sampling is intended to be applied. Through that population, the survey can be conducted. As for the interview, five managers in the management are asked to give their own point of view regarding the computerized accounting system.

3.3 Analysis Plan

The applied statistical method is Chi-Square test that can be effectively utilized to obtain the data according to the set hypotheses. On the other hand the critical alpha level is 0.05 to measure the discrepancy among the group.

References:

Borgstrom, A., Druker, D., & Sparrow, J., (2005) “The Technology Opportunities Program (TOP): Networking Our Nation-A Decade of Lessons Learned”, Journal of the Community Development Society, Vol. 36, No. 1, p. 103.

BTRC, (2007) “Regulatory and Licensing Guideline for Invitation of Proposals/Offers: Issuing License for Establishing, Operating and Maintaining International Internet Gateway (IIG) Services”, Bangladesh Telecommunication Regulatory Communication, Accessed 21 May 2010, from http://www.btrc.gov.bd/newsandevents/IIG_Licensing_Guidelines.pdf

Küpper, H.U., (2002) “Internet Based Information Systems in the Non-Profit Sector”, Accessed 21 May 2010, from http://www.bwl.uni-muenchen.de/forschung/diskus_beitraege/workingpaper/ibinfo.pdf

Reiter, H., (2005) “The Contrasting Policies of the FCC and FERC regarding the Importance of Open Transmission Networks in Downstream Competitive Markets”, Federal Communications Law Journal, Vol. 57, No. 2, p. 243.

Sharma, U., (2008) “Accountant as Institutional Entrepreneurs: Changing Culture at a Fijian Telecommunication Company”, Accessed 21 May 2010, from http://www.afaanz.org/openconf-afaanz2009/modules/request.php?module=oc_program&action=view.php&id=17