Abstract:
The main objective of the study is to determine the contribution of accounting information system on performance of financial institutions in Rwanda, referring to I&M BANK as a case study (2021-2023). Specific objectives were to examine the effectiveness of financial activities performed by accounting information system used in I&M BANK, to determine the contribution of accounting information system to performance of I&M BANK during the period of 2021-2023 and to find out whether there is a significant relationship between
accounting information system and the level of performance of I&M BANK during the period under study. The researcher used descriptive and correlation analysis. 30 employees were selected using universal sampling technique. In the data analysis, the researcher used SPSS 21.0 version. For objective one, the study found overall mean of 3.53 indicated that bookkeeping professional is effectively done by accounting information system in the bank. Overall mean of 3.72 revealed that preparation of accounting documents is highly done by accounting information system in the bank. Finally overall mean of 3.79 indicated effective recording of transactions done by accounting information system in the bank. For objective two, return on asset at I&M Bank was at 1.96% in 2021, decreased to 1.89% in 2022 and finally decreased in 2023 at 1.57%. Return on equity at I&M Bank was at 14.74% in 2021, reduced to 13.05% in 2022 and finally boosted in 2023 at 13.59%. For current ratio, in2021 was1.25, decreased to 1.22 in 2022, and finally in 2023 decreased to 1.15. For quick ratio in 2021 was at 0.25, decreased in 2022 at 0.22 and finally decreased in 2023 at 0.15. For solvency, debts to assets ratio in 2021 was at 0.86,decreased to 0.85 in 2022, and finally decreased in 2023 at 0.88. Also debt to equity ratio was at 6.60 in 2021, decreased in 2022 at 5.88 finally decreased in 2023 at 7.63. An Overall mean of 3.35 indicates that respondents were neutral on bank’s competitiveness which means that it still needs to improve. In respect to objective the correlation was 0.817 located in the interval 0.7≤Ƿ<0.9, categorized as positive and high correlation. Hence, there is a significance relationship between accounting information system and performance of I&M Bank. The bank should keep dealing with financial services based on effective accounting information system.
