Research Proposal on Decision Support in Electronic Accounting Systems

This research proposal investigates the decision support capabilities of electronic accounting systems, focusing on their application within the governmental sector. The study aims to analyze how these systems enhance financial decision-making by examining the theoretical background, identifying issues in current systems, and exploring the financial decisions they support. The research will employ a combination of literature review, primary data collection through surveys, and analysis to evaluate the system's effectiveness. It will also address the benefits, such as time savings and improved data accuracy, and offer recommendations for optimizing the system in governmental organizations. The research also highlights the importance of electronic accounting in improving financial management and meeting administrative requirements, ultimately contributing to more efficient and effective financial operations. The study is aimed to contribute to the development of electronic accounting systems and their role in improving financial decision-making in the governmental sector.

Running head: RESEARCH PROPOSAL
What are the various decision support available through electronic accounting systems?
Name of the Student:
Name of the University:

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Table of Contents
1. Description of the research topic.................................................................................................3
2. Aims and objectives of the research............................................................................................4
2.1 Aim of the research study......................................................................................................4
2.2 Objectives of the research study............................................................................................5
2.3 Background of the research and identify relevant issues.......................................................5
2.4 Justification to perform the research work............................................................................6
2.5 Business discipline and academic area related to the research..............................................7
3. Literature Review........................................................................................................................8
3.1 Summary of the literature study............................................................................................9
3.2 Conceptual Framework........................................................................................................11
3.3 Outline of the literature review chapter...............................................................................13
4. Research Paradigm and Overall Approach................................................................................14
5. Research Design........................................................................................................................16
5.1 Research Strategy................................................................................................................16
5.2 Methods for collecting data and sources.............................................................................16
5.3 Nature of the data.................................................................................................................17
5.4 Access and research ethics to collect data...........................................................................17
5.5 Detailed description of research techniques........................................................................18
6. Potential Outcome of the research work....................................................................................21

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7. Timetable...................................................................................................................................22
References......................................................................................................................................25

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1. Description of the research topic
The selected research topic for this learning is analyzing various decision supports
available through electronic accounting systems. Sun, Strang and Firmin (2017) stated that
electronic accounting system has made advancements over years. The system makes easier for
the business owners to track expenses, prepare taxes as well as look for growth through market
revenue. The purpose of this paper is highlighting electronic accounting system that offers means
to record, report, summarize as well as interpret of financial data. Habiba et al. (2019) argued
that it is mainly designed to serve needs of the users of the accounting data. The system supports
various decisions taken into the business organization while providing detailed picture of the
financial performance. The financial reports are presented to the top management as a basis to
make business decisions. Abernethy and Campbell (2018) discussed that accuracy as well as
reliability of this financial report is significant to take comprehensive decisions by the financial
manager. The paper presents role of electronic accounting system in business. According to
Sledgianowski, Gomaa and Tan (2017), the business owner is using this system to measure
financial performance to make reliable business decisions. It can process information for
management decisions. Advent of the system provides well-organized decision making and
forces the companies to attain on innovative changes to stay competitive.
Through the literature review chapter, the researcher is going to determine various
decisions which are taken through using electronic accounting system. The financial accounting
allowed the business to track the financial transactions. This study is important as the researcher
analyzes that the accounting data is being recorded on financial statements which is further used
for decision making purpose (Susanto et al. 2017). In this paper, the researcher uses data

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collection and analysis findings to determine areas where the system helps in decision making.
Primary data is selected to evaluate the possible decisions which are available through using
electronic accounting system. Susanto (2016) illustrated that the system will consolidate related
business data inserted from different areas of the business organization. The proposed
information system is discussed in this paper as it gives management with timely value of cost.
The primary sources using survey questionnaires are taken for analyzing the selected
research topic. The questions are being prepared focused on the theoretical framework for testing
the hypothesis of the research study as well as distributed to the population of the study work.
In the literature review section, the investigator identifies the possible issues faced by the
government sector organization. Based on those issues, the researcher provided with solutions
with using the accounting information system. In this section, there is evaluating of e-accounting
system throughout entire study and assessment availability of characteristics of the system. The
system should meet with accounting information where the financial management provided
required data to the third parties. The system should require meeting with requirements of the
data users as well as financial management. The paper is intended to perform the study on the
governmental sector as it has lack of studies into the electronic accounting system.
2. Aims and objectives of the research
2.1 Aim of the research study
The research study aims to define as well as analyze role of electronic accounting system
to produce accounting information with efficiency to meet with administrative requirements and
take financial decisions.

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2.2 Objectives of the research study
In this research study, there are specific research objectives which are attempted to
achieve the research aim as it is mentioned above. Following are list of the research objectives
based on which the entire study is carried out:
 To study the theoretical background of the electronic accounting system in the
governmental sector
 To study the issues of the governmental sector raised due to its current system
 To study the financial decisions support available through electronic accounting system
Based on identified research objectives, two of the research hypotheses are identified such as;
Hypothesis 1: The electronic accounting system meets with the financial management needs
of the government sector.
Hypothesis 2: The electronic accounting system provides financial decisions support to the
government sector.
2.3 Background of the research and identify relevant issues
Alamin et al. (2015) stated that utilization of the electronic accounting system leads to
development of financial performance as it is provided with statistical processes as well as
testing tools to evaluate performance and financial decisions. Teru, Idoko and Bello (2019)
discussed that when the organization is adopted the accounting system, then it is noticed that the
proposed system can handle the financial data and true value to generate financial reports.
Accuracy in addition to reliability of the financial report is significant to obtain completed
financial decisions by the top level manager (Aubert and Bernard 2017). One of the aspects of
the system on the enterprises is qualitative as well as quantitative modifications in financial data

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as well as accounting system. Due to technological advancement, there is preparation of
documents, arrangements of the accounting records are carried out with the electronic
environments. In addition to this, e-accounting practices are offered to save time and similar
arrangement of the financial statement turns to be easier. Pan and Seow (2016) argued that faster
development of the system provides greater impact on the accounting and financial departments.
By means of this technological advancement, information is being generated by the system that
has to a level to provide financial decisions regarding investing and lending decisions. It is
helpful to take decisions in short time entirely to the financial data users.
The study seeks to address problems in the accounting system. The e-accounting system
does not have basic components to achieve the objectives of financial firms. The system is not
meeting with requirements of the financial management (Serrano-Cinca and Gutiérrez-Nieto
2016). Therefore, in the literature study the researcher focused to identify issues of electronic
accounting system and solutions to provide effective system for decision making.
2.4 Justification to perform the research work
The selected research topic on identifying and analyzing various decisions support
available through the electronic accounting system is justified so that the researcher can assess
role of the system in the financial departments. The researcher has performed the work in the
government sector as they are behind technological progress in their business (Collier 2015).
Most of the governmental sectors are not till using this system to perform the financial
operations. At first, the researcher studied the theoretical background of the electronic
accounting system in the governmental sector so that the current operations of the sector are
identified (Sledgianowski, Gomaa and Tan 2017). Then, there is study on the possible issues
which the organization is facing due to using traditional accounting system or manual system.

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The effectiveness and benefits of electronic accounting system are identified to study the
financial decisions support available through using the system.
In addition to this, electronic audit concepts are discussed in the paper by performing the
audit activities throughout entire computerized development in the financial operations. The
study is performed to identify significant impacts of electronic accounting on developing the
technology brings savings in time, user’s cost and taking financial decisions (Schroeder, Clark
and Cathey 2016). As the system is used by governmental sectors, therefore it becomes user
friendly accounting. Electronic interchange of data and transfer of funds are helping to take
better financial decisions. The study is justified to analyze role of the accounting system and
produce information for meeting administrative requirements to rationalize financial decisions in
the governmental companies in Ireland (Muda 2017). The study is provided recommendations
and outcomes related to take decisions support using the system in government companies. It is
needed to give financial information to plan and decision making.
2.5 Business discipline and academic area related to the research
The current paper is based on the governmental sectors in Ireland those are not using
electronic accounting system in their financial operations. The paper is studied on the
government business sector and requirements for the system to provide financial information. It
helps the government to set the financial policies, and take financial decisions on expenditures as
well as financing the project budget (Arnott and Pervan. 2016). The research study is focused on
the system in Ireland and capability to meet with requirements of financial management
throughout the survey of staffs conducted in the governmental departments. The previous study
dealt with aspects of the accounting system and it is comprehensive study with respect to
governmental sector. There is difference among the accounting system of government as well as

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private sector. The research study is demonstrated efficiency of the system through analyzing the
factors affected system efficiency.
This subject area is new to the best knowledge of the project researcher as previous
studies are based on the governmental sector rather than the government sector organization. The
study is revealed to show availability of qualities of the system in the developing countries. The
study also performed to demonstrate that electronic accounting system should meet with needs of
the financial management (Collier 2015). This study has significance as it plays a fundamental
position to develop the economy of the business. Then, the business can identify its profit
positions, cost, measure productivity and profitability, measure business performance and plan
future of organization. It enables management to perform business easily and immediately
accomplish the business decisions over regular routines.
3. Literature Review
McVay, Kennedy and Fullerton (2016) stated that the electronic accounting system is
contained administrative management into the business organizations to handle financial data
recording, tabulation, processing of data and making decisions to the users. The system is
provided financial information on time for assisting and implementing the budget. According to
Subramanian (2018), the electronic accounting system helps to make decisions regarding
financing lending, investing decisions, financial policies, means that the system can serve
governmental administration in development along with decision making. Decrease in analysis
of the financial data affects quality of decisions support. In the literature review section, the
researcher discusses on the decision models which are used to take financial decisions in the
business (Yazdani 2017). Through use of traditional accounting system, the time to enter the

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financial data is time consuming as it included steps like journalizing transactions, posting to the
ledger accounts, trail balance, preparing end period of trial balance, preparation of financial
statements and disclosure. There are lot of transactions are performed in the accounting cycle,
and little mistake cause inaccuracy in the cycle. The manual accounting system is used various
paper ledgers, journals and financial records (Schneider et al. 2015). The electronic accounting
system is used software programs designed from the manual system and involved use of the
computers along with spreadsheets to verify as well as account the financial information.
3.1 Summary of the literature study
Regarding the advantages of the electronic accounting system, most significant benefit of
the system to use speed of the computer to record the financial data and use it for decision
making. Fernandez, Zainol and Ahmad (2017) mentioned that the system allowed the manager to
review financial position of the company in real time and perform adjustments in the business
strategies. Using the system, the governmental sector provides instant reports on evaluation of
stock, profit as well as loss, accounts of customer, payroll, analysis of sales, in addition to faster
adjustments in the business strategies. Raudla and Tammel (2015) stated that due to ease of use
as well as efficiency of the system, the accounting system allowed modifying the inventory
control, collecting payments and modifications over cash flow statement. The financial data are
kept back confidential by using security password system.
After analyzing the benefits of the system, the researcher has discussed on the
disadvantages of the system. As the system is coming to set of issues, there are losses of
financial data due to hardware as well as software damage. Coyne, Coyne and Walker (2016)
illustrated that there are also losses of data because of power failures and stolen of data by
hacker. When the system is used to control over financial accounts, it is used as means to attack

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funds it controls. In most of the electronic accounting system, it is the computer causes credit
transfer, so that it establishes false accounts and causes false beneficiary. Schmidt et al. (2015)
argued that the system is concealed to cause cost changes and cause destruction of tangible
services.
The accounting information system is aided in the governmental sector in areas of the
managerial positions, department of sales and financial departments. Sun, Strang and Firmin
(2017) discussed that use of the programmed decision making offers various advantages to the
business firm, as the computer is able to take better programmed decisions as compared to
human users. The system is helping the management as well as external users to take financial
decisions related to investing, lending and financial policies. Following are list of the decisions
support available through use of electronic accounting system such as:
Investing decisions: The fundamental analysis is based on the balance sheet of the
company, declaration of the cash flows in addition to profits statements. The monetary
statements for the public traded companies are accounted based on the monetary accounting
standards. Abernethy and Campbell (2018) stated that the investors are using the information
from the financial statements to take decisions with reference to assessment plus
creditworthiness of the business. Teru, Idoko and Bello (2019) argued that without recording this
information in financial accounting, the investors cannot understand the past in addition to
existing monetary health of stock in addition to bond issuers. Therefore, the investors can get
accounting information based on existing location of the firm.
Lending decisions: The financial accounting is a key for the lenders. As the monetary
statements are outlining with assets, short debt, long debt, then the lenders can sense the

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creditworthiness of the company. Sledgianowski, Gomaa and Tan (2017) concluded that Debt-
to-equity ratio, times interest earned ration are taken into consideration to take decisions on the
business. Through using the electronic accounting system, the lender can determine and outline
decisions on how much to lend and what is the internet rate.
Financial policies: One of the key significant financial decisions that the manager should
take related to the financial policies is dividend policy of the company. It is concerned on how
the earnings of company are paid to the key shareholders. Wagner (2017) proposed that
decisions are to be taken to determine if the generated earnings are reinvested to improve the
operations. When distribution of dividends is high, then the company should determine
limitations for expanding along with improving management of the financial operations.
As conclusion from the literature study, the electronic accounting system is faster as well
as effective to process the financial information. Due to change in properties of the financial
information, the accounting system becomes efficient to meet with requirement of the users. The
automated generation of the accounting documents contained invoices, accounting statements
with cost reduction. According to Raudla and Tammel (2015), promotion over quality of the
financial reporting is done through the feedback from the employees. The financial records are
provided feedback to prepare reports enables to update the accounting system.
3.2 Conceptual Framework
The paper developed the conceptual framework to analyze the changes into the electronic
accounting system. The objective of this framework is to improve understanding of how the
financial business can change and make monetory decisions. The main perspective of this