The aim of this research is to find out the impact of computerized systems on the financial accounting of a business, and if it closely relates to the achievement of the success of a firm and more so as it relates to the success of ‘First Caribbean International Bank’. To assess critically the advantages and disadvantages of Joint Stock Companies as oppose another type of business decision/organization. And also to determine the social and ethical issues of First Caribbean International Bank.
During the course of the research several problems were encountered. Individuals exhibited lack of co-operation, and many persons were occupied with work and could not find time to take part in an interview. A few questionnaires were distributed, though the participants were given ample time to complete the questionnaires many were still not finished after a one-week period. The method of data collection employed is the use of questionnaires, the application of an interview and a some what in-depth research on the firm ‘First Caribbean International Bank’. The method of data collection was used because it was inexpensive and was able to reach a large variety of persons in a short amount of time. Fifteen questionnaires were randomly distributed to employees within the accounting department of the First Caribbean International Bank.
In the 1950’s, computers were a new race of machines and most common person did not know anything about them. Today, computers and new Innovation like the internet has changed the business world and even our daily lives. How did it change the business world and our own personal lives and is it for the best, this will be discussed in this report. How Computers changed our lives Introduction Large businesses now mostly depend on computers to stay competitive, they not only save time and effort, but sometimes they are used to do very complex applications that are necessary to the business. In our society today, computer technology plays an important role in many form of business, especially in the field of accounting. As technology advances, not only does the use of computers penetrate individual’s everyday life, it also helps to mange and improves many business operations from service, manufacturing to retail.
IMPACT OF TECNOLOGY ON FINACIAL ACCOUNTING OF FIRST CARIBBEAN INTERNATIONAL BANK
Accounting is the recording, classifying, summarizing, and interpreting of financial events and transactions to provide management and other interested parties the information they need to make good decisions. Basically it is how businesses track their income and assets over time. Accountants perform a wide variety of activities besides just preparing financial statements and recording daily business transactions, they also have to compute costs and efficiency gains or losses, participate in strategies for mergers and acquisitions, management, and tax strategy. There are many job opportunities available in the field of accounting. According to the text Management Accounting by W.M Harper, an appropriate record-keeping system may determine the survival or failure of your business. Good record-keeping systems may increase the chances of staying in business and the opportunity to earn larger profits.
Complete records will keep you in touch with your business’ operations and obligations and help you see problems before they occur. An auditor deals with the checking of ledgers and financial statements, within corporations and government. Accounting is sometimes thought of as a mundane activity, taking a back seat to marketing and management endeavors that are thought of as being more creative. However, management of every enterprise with financial transactions or matters is dependent on reliable and timely accounting and financial information for decision-making purposes. No enterprise can exist for long without appropriate internal accounting records/controls. This field is becoming increasingly computerized.
First Caribbean International Bank found it necessary to computerize their operations in order to serve their customers better. Computerizing their operations helped them in processing information more quickly by minimizing the occurrence of errors. Also a reduced amount of paper work would allow the business to comprise a larger storage space facilitating the cost benefit of the operation’s increase in greater efficiently. First Caribbean also hoped that also, by computerizing their operations they would gain greater customer satisfaction to have a more competitive lead in the financial market. To ensure customers accounts were balanced and that both the customer and organization were satisfied. The organization created a project team, assigning tasks to each member and the deadlines in which there operation of the computerization should take place. The project team incorporated; IT professionals, Managers, Supervisors and IBM professionals.
First Caribbean has benefited from CIS (computerized systems) in many ways; they are now able to process transactions online, they have Internet & Telephone Banking coming on stream, they have greater customer satisfaction, a more efficiently system error free transactions customer’s passbooks can be updated right away, less waiting time for customers. A larger storage system capacity, it is easier to produce, manipulates and analyzes data.
The organization can now make better planning and organizing of its operations on financial accounting, monetary issues and distributional activities. The benefit CIS has on the customers of First Caribbean International Bank is that it allows them to balance at a faster speed and accurately. The customers have the opportunity of getting easier access to their accounts, also they benefit by spending less waiting time at the bank to do any given transactions.
ANALYSIS OF NATURE AND SCOPE OF THE BUSINESS
First Caribbean International Bank is registered as a joint stock company. According to the encyclopaedia joint stock companies are defined as: a company (usually unincorporated) which has the capital of its members pooled in a common fund; transferable shares represent ownership interest; shareholders are legally liable for all debts of the company. A joint stock company is the usual choice for large concerns.
It normally seeks to open its capital to public investors through a listing on the stock market. Italian joint stock companies have greater means at their disposal than before to raise market capital, and can offer innovative financial instruments to Italian and foreign investors, with specific, individual rights of ownership and participation. There are a number of reasons for the popularity of the joint stock company.
A few of these reasons are; Liability is limited to the corporation’s assets. This only means that if the business was suppose to go into bankruptcy the owner would only be responsible for the debts of the business. Another motive for joint stock companies being popular is; Investors remain anonymous and the annual accounts only need to be published if the corporation has outstanding bonds or if it is quoted on the stock exchange. One of the most popular reasons for this choice of a business decision is the known formation of a joint stock company. A minimum of three shareholders is required. Third parties may subscribe as trustees; a one-man corporation is quite common (but only after the corporation is founded).