Thesis Abstract

Abstract
The importance of a proper accounting system in industries cannot be overstated. This research delves into the significant impact that an improper accounting system can have on the performance of industries. The study aims to explore how deficiencies in the accounting system can lead to non-performance and hinder the overall success of businesses. Through a comprehensive review of literature, this research identifies various ways in which an improper accounting system can contribute to non-performance in industries. These include inaccuracies in financial reporting, lack of transparency, mismanagement of funds, and failure to adhere to accounting standards and regulations. Such shortcomings can result in financial losses, operational inefficiencies, and ultimately, a decline in the competitiveness and sustainability of industries. Moreover, the research investigates case studies and real-world examples to illustrate the detrimental effects of improper accounting systems on industries. By analyzing these cases, the study highlights the specific challenges and consequences that businesses may face when their accounting systems are not effectively managed or maintained. Furthermore, the research explores potential solutions to address the issues arising from improper accounting systems in industries. Recommendations include implementing robust internal controls, conducting regular audits, training staff on proper accounting practices, and leveraging technology to streamline accounting processes. These solutions aim to enhance the accuracy, reliability, and integrity of financial information, thereby improving decision-making and performance outcomes in industries. In conclusion, this research underscores the critical role of a proper accounting system in driving performance and success in industries. By recognizing the impact of deficiencies in accounting practices, businesses can take proactive measures to strengthen their accounting systems and mitigate the risks associated with non-performance. Ultimately, a well-functioning accounting system is essential for achieving financial stability, operational efficiency, and long-term growth in industries.

Thesis Overview

1.0       INTRODUCTION

Any organization, manufacturing or non-manufacturing that knows its owns requires an effective accounting system for its continuous existence. We have in the post head of firms that folded up due to one reason or the other. When properly investigated as to what brought about its folding up, one may not be surprised that it was due to negligence in operating an affective accounting system.

Every manufacturing / non-manufacturing industry needs an effective proper accounting system to determine industry needs on effective proper accounting system to determine the profitability position at least to break even. The shoreholder is interested in seeing his invested funds, yielding returns. The creditors want to be sure that his money lent to the company is not squandered. Also the tax authority relies on this system to asses such company’s tax liabilities.

1.1       OBJECTIVE OF THE STUDY

The write-up tends to achieve the following objectives:

·                     To ascertain, assess and evaluate how improper accounting system affects the performance or industries.

·                     To examine the extent to which accounting system can supply management with much needed information for decision making.

·                     Finally, and most important objective, is to determine how improper accounting system could lead to non-performance in industries by examining the benefits of proper accounting system as a whole.

1.2       SIGNIFICANCE OF THE STUDY

With this study, players in the industrial sector or an economy will understand how keeping an improper accounting system could lead not only to the non-performance of such an industry but to the adverse effect of winding up of that industry.

 

The study will also be useful to management consultant, creditors, shareholders, tax authorities and even government. Also to the writer who aspires to become a prolessmal, the research work undertaking by him will enable him have a foresight of what is to come.

 

Finally, to any other student who might want to research in something similar, this work will be of useful importance.

1.3       RESEARCH QUESTIONS

In order to carry out a proper research of this nature, question must be answered. Such question includes:

·                     Does proper accounting system in an industry or organization affect its chances of making profit?

·                     Is proper accounting system necessary for effective operation hence the performance of an organization?

·                     Finally, what impact does a proper accounting system have on any organistion?

1.4       DEFINITION OF TERMS

FOLD UP /WIND UP: The closure of a firm due to mis-management of its fund or poor sales.

BREAK EVEN: This is also known as Break-even point. It is the poor at which total revenue equals the total expenses. At this point the firm make neither profit or loss.

SHAREHOLDER: These are owners of shares in a company.

FUND: A sum of money made available or saved for a particular purpose.

CREDITOR: A person / company to whom money is owned.

SYSTEM: A group of things working together as a whole.

TAX: This is a compulsory levy on incomes of individuals, companies and property charged by government.