Accounting Information Systems And Institutional Financial Performance: A Case Study Of Bank Of Kigali (BK) In Rwanda

Abstract

The study examined the relationship between Accounting information system and financial performance in selected financial institutions in Rwanda and it was based on four specific objectives; level of accounting information system, level of financial performance, to establish if there is a significant relationship between the levels of Accounting information system and financial performance in selected financial institutions in Rwanda. Finally to establish if there is a significant relationship between the levels of accounting information system and financial performance in selected financial institutions in Rwanda. The study used a descriptive correlation research design. SAQ was used to collect primary data from 61 out of 72 employees, using simple random sampling. Data analysis was done using SPSS’s frequencies and percentages; means and PLCC. Findings revealed that majority of the respondents were female, falling in the age bracket of 20 – 39 years, with bachelor’s degree, and experience between 4-6 years. Means showed that both the level of accounting information system implementation and the level of financial performance of Bank of Kigali were satisfactory. PLCC revealed a positive and significant relationship between accounting information system implementation and the level of financial performance of BK while regression analysis showed that accounting information system contributes 88% to financial performance. Basing on the above findings, the researcher made the following recommendations; financial institution should increase the rate and preparedness to meet their current liabilities, the percentage of business profit retained for expansion purposes need to be increased, Business plans to list on the stock exchange in future need to be handled sophisticatedly , on the time capturing and accurately recording transactions need to be emphasized all the time , Budgets should be prepared to forecast operations and compare estimate with actual results, and accounting policies adopted need to be applied consistently 53