IMPACTS OF ACCOUNTING INFORMATION SYSTEM ON THE FINANCIAL DECISION-MAKING CASE STUDY: BANK OF KIGALI PLC HEADQUATER BRANCH (2021- 2023)

Abstract

Examining the effects of accounting information systems on financial decision-making was the aim of the study. An analysis of Bank of Kigali Plc's operations from 2021 and 2023. The study's specific goals were to assess the function that the accounting information system plays in the financial decision-making process at Bank of Kigali Plc and to determine how effective the system is when used there. The results demonstrate that computerized, manual, and accounting controls systems make up 100% of the accounting information systems used by Bank of Kigali Plc. The findings in show that, the net income of BK ltd increased during the period from 2021-2023, net income increased from 20,484,058,000 in 2021, 26,214,448,000 in 2022 and 23,246,922,000 Rwf in 2023, this net income shows that BK ltd minimize fees and commission paid and loan loss provision from 2021 to 2023 which has caused the increase in net interest income and net income from banking activities, this shows the good image of the bank and how it collaborates with its customers. The decisions taken to increase the level of profits of BK Ltd included: BK Ltd has located ATMs and BK Ltd agents in Kigali city and in other districts. BK Ltd has invested in internet banking services and mobile banking services. These decisions have contributed to the increase of income and the general performance of BK Ltd. The findings shows that BK Ltd equities increased in 2021 was 285,700,114 Rwf, in 2022 was 319,076,357 Rwf and in 2023 was 366,357,418 Rwf. After looking that BK Ltd need to invest in long term assets and need to expand its activities, in order to increase the equity of BK Ltd, the bank was listed on Rwanda capital market to attract new investors who bought shares and the bank has also invested in marketing activities to make the public aware of the BK Ltd products and services and to call the public to invest in the bank. All business of profit oriented are also intended to maximize the shareholders’ wealth, the accounting information system has contributed to return on funds invested in equities, as financial statements provided the information to decision makers of BK Ltd. In order to increase the stockholder’s equity of the bank, BK Ltd decided to participate on the Rwanda capital market, to look for new investors to invest in BK Ltd through buying shares.