Assessment of the Effectiveness and Efficiency of New Accounting Information System of Guagua Rural Bank (an Sme) Henson St., Angeles City
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Assessment of the Effectiveness and Efficiency of New Accounting Information System of Guagua Rural Bank (an SME)  Henson St., Angeles CityHoly Angel UniversitySto. Rosario, Angeles City[pic 1]Diamzon, FerleneLaxamana, Camille P.Manalo, Ezrah Jona L.Manalo, Keesha Monik P.Padilla, Rupha Mae D.Tulabut, Camille Dianne D.Torres, Zildjian D.F-433IntroductionAssessment of the Effectiveness and Efficiency of New Accounting Information System of Guagua Rural Bank (an SME) Henson St., Angeles CityOver the past few years, there have been wide technological and economic changes that took over the world which affected various areas and sectors specifically in accounting. Accounting is used by banks. Banks play a key role in improving a nation’s economic growth and developing different industries. Banks nowadays comply with the technological change brought by continuous innovations by people all over the world; and because of this, banks uses accounting information system to keep up with the globalization. Accounting information system also plays a key role in determining the degree of success in storing the financial data and providing control. Client nowadays wants to have a highly competitive and global changing on business industries. Therefore it will require an Accounting Information Systems (AIS) to have faster responses to business inquiries. The growing bank institution in the country particularly creates and will need to develop an effective accounting information system that helps in data archiving, analysing, and classifying to be ready use database. Computerized accounting systems nowadays seem to triumph over paper based systems, however, manual accounting systems still provide an effective and useful way of recording business transactions. It also delivers an efficient accounting information system for the small business enterprises. (AccountsMan, 2012)A manual accounts system according to AccountsMan (2012), if developed correctly can deliver timely and accurate information. In a well designed manual accounting system the advantages outweigh the disadvantages in many ways particularly in small businesses. The manual system however, requires a greater understanding of how to bookkeep. Mastering the basic bookkeeping skills apply to all the books of account and can be applied to any business, whether you are setting up a manual accounting system for a website designer or even a book keeping business, the fundementals are the same.AccountsMan (2012) also cited the disadvantage of a manual accounting system as it is prone to human error. Errors are enumerated as errors in addition, transposition of figures, incorrect recording of a transaction, incomplete recording of a transaction, – where only one side of the double entry is recorded –  are all quite common mistakes and can prove to be quite difficult to locate without a good deal of experience in accounting.Senior bank executives across the world view technology as the biggest cause of transformation to the industry, so as Small and Medium Enterprise or  SMEs Technological advances was the most popular choice among the executives in the survey as one of the global trends that will disrupt banking in the next five years, with 86% of respondents citing it as one of their top three trends (White L. & Frame W., 2009). The paper first describes the role of the financial system especially Accounting Information System for Small and Medium Enterprises and how technological change and financial innovation can improve operations in banking. The impact of using accounting information system to operations made it efficient for them record transactions including interbranch transactions and to provide convenience to their clients.
According to (Fontinelle 2015), “An accounting information system (AIS) is a structure that a business uses to collect, store, manage, process, retrieve and report its financial data so that it can be used by accountants, consultants, business analysts, managers, chief financial officers (CFOs), auditors and regulatory and tax agencies. In particular, specially trained accountants work with AIS to ensure the highest level of accuracy in a companys financial transactions and recordkeeping and to make financial data easily available to those who legitimately need access to it, all while keeping data intact and secure.” Appropriate AIS can provide useful information for the decision makers of commercial banks. The ability of a commercial bank to introduce and provide new services, or adjust the current services, cannot be maintained without the availability of enough information regarding the needs and desires of its customers, and without information about its competitors and the activities of those competitors (Al-Arabi, 2007).Statement of the problemCompetition among banking industry is evident and to achieve the best performance of each banks, having an accounting information system is vital especially in financial control and management of banking operations that would result to an outstanding increase in profitability and utmost quality of service. From here, the proponents arrived with the idea of assessing the effectiveness and efficiency of the use of accounting information system in GR Bank. The problem of the study can be formulated by the following questions:1. Does implementing the new AIS positively affect the profitability of GR Bank? If not, why?2. Does integrating AIS between the operations of management and accounting department reduces cost regarding banking services?3. Does the application of this technology based services improve the internal control in banking?4. Does AIS provide timely information?5. Does the use of AIS require technical skills of clients and personnel in using a computer?ObjectivesThe general objective is to evaluate the effectiveness and efficiency of new accounting information system of banks. One specific objective of this research is to determine the advantages and disadvantages of using technology in storing financial data. In addition, the researchers also aim to specifically assess through the new accounting information system used by Guagua Rural Bank located at Henson St., Angeles City in particular with their banking transactions and services provided to clients, so as to know if the new implemented system works better in dealing with interbranch transactions.