COMPUTERIZED ACCOUNTING SYSTEMS AND FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN NIGERIA: A CASE STUDY OF FIRST BANK OF NIGERIA BAUCHI BRANCH

ABSTRACT As the intensity of computer use in business has greatly improved over the years, this hashelped commercial institutions to improve on their overall financial positions by promotingtransparency, accountability and ef iciency through faster capturing, processingandcommunication in information. However, despite the high levels of computerization inplace, banks are still unable to deliver real time services to customers which result fromhighcostsof employee training and programming procedures, high initial costs of acquiring hardwareand installation of computer systems. The purpose of the study was to evaluate the influenceof computerized accounting systems and financial performance of commercial banksinNigeria. The study objectives were to examine the application of computerized accountingsystems on the performance in commercial banks in Nigeria, to establish the performanceof commercial banks in Nigeria as well as to establish the relationship between computerizedaccounting systems and the performance of the bank. The study used a cross-sectional research design which was often used in assessing respondents' views towards the ef ectsof computerized accounting systems on financial performance of commercial banks. Thestudyresults revealed that in spite of the costs and system failures, computerization of accountingsystems has a positive significance on the performance of the bank. These positive impactsinclude reliability and regularity of reports produced quality information and improvedservice delivery. Findings revealed that computerized accounting systems leadtoaconsiderable change in reduction of errors hence attaining accuracy, increased businesscapacity and improved ef iciency in terms of service delivery. The researcher recommendsthat accounting systems should be more computerized to a greater extent and there shouldbeproper training of bank staf on modern basic skills in computers and management principles.