IMPACT OF ACCOUNTING INFORMATION ON DECISION MAKING PROCESS

ABSTRACT

An accounting information system (AIS) is a structure that a business uses to collect, store, manage, process, and retrieve its financial information. The need for information is basic for concrete and explicit management decision to ensure the success and survival of an organization and since the aim of any business organization is “profitability”, Accounting information is indispensable to achieving this goal. Hence, this research work studies how effective and efficient the instrument of good accounting information is in decision making in an organization. Accounting information is a part of lodges life which is necessary to understand the accurate financial situation of the organization and used as the basis of making strategic decisions. Since strategic decisions have long-term effect on business, it is important to analyze the impact of accounting information on decision-making process. The case study of this work is Small and Medium Enterprise Development Agency (SMEDAN). Data collected was analyzed using chi-square and simple percentage table. The result of the study shows that there is significant relationship between accounting information and strategic decision in the organization. Organization should eradicate weak accounting system by making sure that every staff in the accounts department is co-operative and fully conscious of his/her role in the department so as to produce good accounting information. It is therefore, recommended that management staff in organizations should ensure that accounting information are accurately organized and these information be properly employed to make useful and strategic decision.