The Impact Of Accounting System On The Organisational Performance

Abstract

In the current information technology era, most of the government agencies are using computerised accounting information system in preparing their financial statements. An effective fully integrated accounting information system is important in order to improve the transparency and accountability of the government's financial management, and also to increase the efficiency of public resources management. With the effective system, it is possible to avoid wastage and inefficiency in the usage of public resources. Realise the benefits of the effective accounting information system in the government financial management system, therefore, this study is conducted to examine the impact of computerised accounting information system on organisational performance. Data was collected by questionnaire survey and a sample of 643 of government agencies in Putrajaya, Kuala Lumpur and Selangor. A descriptive statistical tools and structural equation modelling were employed in the data analysis. From the users’ perspectives, they perceived that the effectiveness of accounting information system has significant contribution on organisational performance. While, a path analysis showed that the effectiveness of accounting information system has insignificant relationship with the organisational performance but indirectly has significant relationship on the organisational performance.