CONTRIBUTION OF ACCOUNTING INFORMATION SYSTEM ON THE PERFORMANCE OF MANUFACTURING COMPANIES IN RWANDA A CASE OF BRALIRWA PLC: 2020-2023

Abstract

The study was about the contribution of accounting information system on the performance of manufacturing companies a case of BRALIRWA PLC: 2020-2023. Specifically it analyzed the accounting system applied by Bralirwa PLC to see if it works in compliance with accounting standards or GAAP, evaluated the performance of Bralirwa PLC for the period of 2020-2023 and analyzed contribution of accounting information system on financial performance of Bralirwa PLC. The targeted population for this study was all employees of BRALIRWA PLC 418. On the other side researcher used Purposive sampling and only consider staff from Accounting, Finance department as well as directors of finance and IT departments whose number is 81because they are the one that have enough information on the matter of the concern. Regarding the compliance with accounting standards or GAAP results shows that the majority of respondents with 55.6% strongly agreed with this statement and 44.4% agreed with this. Also, the majority of respondents with 69.1% strongly agreed that Bralirwa PLC always respects the principle of sincerity and 30.9% agree with the statement. Also the performance of Bralirwa PLC was assessed through profitability ratios; Leverage ratios and Liquidity rations and results shows that from 2020 up to 2023 the ratios of gross profit margin were 8.96%; 14.18%; 14.30% and 16.07% respectively. Also From 2020 up to 2023.The ratio of Return on Assets are 7.08 %; 15.05%; 14.45% and 15.38% respectively. From 2020 up to 2023the ratio of Return on Equity are as following: 21.14%; 30.37% and 40.16% respectively. Regarding the contribution of accounting information system on financial performance of Bralirwa PLC correlations analysis shows that there is a positive correlation between Accounting Information System and performance of Bralirwa PLC during the period of the study. This is indicated by the value of Pearson coefficient of correlation (.821) which is positive and strong. The P-value (.012) which is less than the level of significance 5%, this is evidence that the correlation is statistically significant. This implies that increase in effective AIS leads to a positive increase in performance of Bralirwa PLC. Bralirwa is recommended to increase current assets by enhancing cash reserves, speeding up accounts receivable collections, and optimizing inventory.