Effects of E-Accounting on Financial Performance of Some Selected Deposit Money Banks in Nigeria.
Abstract
The rapid advancement in information and communication technology has significantly transformed the accounting practices of financial institutions in Nigeria. This study investigates the effects of e-accounting on the financial performance of selected deposit money banks (DMBs) in Nigeria. E-accounting, which encompasses the use of computerized systems for recording, processing, and reporting financial information, has emerged as a strategic tool for enhancing operational efficiency, accuracy, and transparency in financial reporting. The research adopted a descriptive and correlational design using both primary and secondary data collected from annual financial reports and structured questionnaires administered to accounting and IT personnel in selected banks. Key financial performance indicators such as Return on Assets (ROA), Return on Equity (ROE), and cost-to-income ratio were analyzed in relation to e- accounting adoption. Findings from the study revealed a significant positive relationship between the implementation of e-accounting systems and improved financial performance. However, the study also identified challenges such as inadequate staff training, system integration issues, and cybersecurity threats that hinder the full benefits of e-accounting. The study recommends increased investment in ICT infrastructure, continuous staff development, and enhanced regulatory support to maximize the gains of e-accounting in the Nigerian banking sector. These findings provide valuable insights for bank managers, policymakers, and stakeholders seeking to improve financial performance through digital transformation.
