COMPUTERIZED ACCOUNTING AND PERFORMANCE OF SELECTED WHOLESALE COMPANIES IN somalia.

ABSTRACT Thisstudyestablishedtherelationshipbetweencomputerizedaccountingsystems and performance of selected wholesale companies in Hargeisa, Somalia. The study was based on these three objectives; l) to examine the effectiveness of computerized accounting systems; 2) to assess the performance of selected wholesale companies; and 3) to find out whether there is significant relationship betweencomputerizedaccountingsystemsandperformanceofselectedwholesale companiesinHargeisa,Somalia.Adescriptivecomelationalandcrosssectional survey design involving both qualitative and quantitative approaches was employed.UsingSlovene’sformula,asamplesizeof114wasused tocollectdata from employees of the selected wholesale companies through purposive and systematic random sampling techniques. a researcher made questionnaire was usedtocollectdata,whichwasanalyzedusingfrequenciesandpercentages,mean scores and ranks, Pearson’s Linear correlation coefficient and Llnear regression analysis.Thefindingsrevealedthatcomputerizedaccountingwaseffectiveinthe selectedwholesalecompanies(overcallmean=2.78);performanceoftheSelected wholesale companies was also found to be high (overall mean = 2.71); the relationship between effectiveness of computer ized accounting and performance of the selected wholesale companies in Hargeisa was also positive and significant (at r —.988; R2 = 0.978; and sig. = 0.000). Basing on the individual items tinder- computerized accounting, this study found out that effectiveness in data validation; financial security and financial information and reporting have positive and significant i-elationship with performance of the selected wholesale companies. This finding is demonstrated by the § values of 0.379; 0.217and 0.264atsignificantvaluesof0.003;0.000;and0.009respectivelyatstandardized significant value of 0.05. However, data storage and accuracy did not have any significant relationship with performance of selected wholesale companies as its significant valite computed in 0.121 atid this is greater than the standardized significant value of 0.05, so the null hypothesis was accepted. The i-esearcher concluded that computerized accounting in the selected wholesale companies in Hargeisa is effective; the performance of the selected wholesale companies is high; and that theme is a strong, positive and significant relationship between computerized accounting and the performance of the selected wholesale companies in Hargeisa. The study recommends that the management of the selected companies should work hand in hand with their accountants to ensure improvements are ensured in the areas of data validation financial reporting and information as well as data storage and accuracy such that improvement in performance of the companies can be enhanced.