ACCOUNTING INFORMATION SYSTEM (AIS) AND THE PERFORMANCE OF MANUFACTURING INDUSTRY IN RWANDA. CASE STUDY: BRALIRWA PLC Period: 2020-2022

Abstract

The study is about the contribution of accounting information system (AIS) to the performance of manufacturing industry in Rwanda. A case of Bralirwa PLC (2020-2022). Specifically this study examined the effectiveness of accounting information systems applied by Bralirwa PLC and analyzed the contribution of accounting information system on financial performance of Bralirwa PLC. In virtue to the main purpose of this study, researchers designed an appropriate research methodology and used the interview, documentary and questionnaire techniques to collect and analyse relevant data which allowed the researchers to obtain the following findings: Regarding to the effectiveness of accounting information systems applied by Bralirwa PLC, results showed that the majority of respondents with 55.6% strongly agreed with this statement It is also observed that 53.1% agreed that Bralirwa PLC always respects the principle of consistency and 46.9% strongly agreed with this statement. Also, the majority of respondents with 69.1% strongly agreed that Bralirwa PLC always respects the principle of sincerity. On the other side researchers realized that 86.4% strongly agreed that Bralirwa PLC comply with the principle of permanence of methods. Regarding the information provided by financial analysis in Bralirwa PLC results show that the majority of respondents with 60.5% strongly agreed that Bralirwa PLC‟s accounting provides enough information company‟s liquidity. Therefore, it is from that we reject H10 in favor of H11 which means that accounting information system applied by Bralirwa PLC is effective.The performance of this company also was analysed and results shows that from 2020 up to 2022. The ratio of Return on Assets is 7.08 %; 15.05% and 14.45% respectively. From 2020 up to 2022 the ratio of Return on Equity are as following: 21.14%; 30.37% and 40.16% respectively. Correlation Matrix also shows that there is a significant relationship between the variables under study because the value of Pearson coefficient of correlation (.821) which is positive and strong. The value of 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. Therefore, we conclude by saying that H20 is to be rejected in favor of H21 which means that accounting information system applied by Bralirwa PLC significantly contributes to its performance.