The reasons for the underutilization of integrated

accounting software in the Government Sectors in Sri

Lanka

INTRODUCTION
Regarding advanced technologies, there are many stories to be told.
Despite the harsh conditions of the COVID-19 global pandemic, the name
itself is connected with growth. Throughout most of today's business
world, it continued to revolutionize industries and businesses. It
transforms structures and procedures by automating traditional methods.
Due to technology improvements, companies may now operate more
efficiently and effectively. And it's here that you'll get the most up-to-
date financial data. Accountancy firms have introduced cloud-based
accountancy solutions to their mix of on-premise solutions due to
advances such as Software as a Service. There will be more technological
advancements in the accounting field in the near future.

Automation and high-tech systems have a commercial influence on many

accounting executives and accountants.

Several reasons have contributed to this cultural shift.

According to the research, it is attributed to marketing demands, laws,

generational shifts, customer demands, and expenditures made by firms
to stay up with the field of accountancy.

Furthermore, the ongoing pandemic have led in changes in organisational

environments, resulting in adjustments in daily operations.
With the market in a very state of transition, many accounting executives
and experts are exploring different capabilities in adopting modern
accounting services.

RESEARCH PROBLEM & SIGNIFICANCE

This research aimed to identify the computerized accounting systems
employed by the Sri Lankan government in the goverment sector,
examine the extent to which the Sri Lankan government sector utilize the
built-in internal factors positively in their computerized systems, as well
as investigate the alleged reasons for any of the automated accounting
systems interior control features being underutilized. The researcher
employed the survey methodology in the conduct of the study, and data
were collected using a questionnaire administered to an accounting
officer in the government sector. The study results indicate that the Sri
Lankan government sector employs various accounting software in the
performance of their accounting function, with QuickBooks, Peachtree
(Sage 50), Tally, Accpac, and Oracle being the most important used. The
study also indicates that the Sri Lankan government sector inadequate
utilize the built-in internal control features in their computerized
accounting systems. Lack of awareness of interior control features in
their accounting systems, a restricted number of accounting employees,
and a lack of formal internal control procedures are among the
explanations given in the study for firms' underuse of a few of the control
environment features. This study extends the body of knowledge in
accounting. Its results would be helpful to academia, management,
accounting personnel of the Government Sector, and other practitioners.
To validate and extend the findings of this study, additional research has
been suggested

RESEARCH AIMS AND QUESTIONS

1. To explore the latest developments in the accounting software
used by Sri Lankan government Organization
2. To examine the organizational factors that affect the utilization
of integrated accounting software in the Government Sector
organizations in Sri Lanka
3. To reveal the technical factors that affect the utilization of
integrated accounting software in the Government Sector
organizations in Sri Lanka
4. To investigate the personal factors that affect the utilization of
integrated accounting software in the Government Sector
organizations in Sri Lanka
5. To suggest a framework to get the maximum benefits of the
investments made on integrated accounting software in the
Government Sector organizations in Sri Lanka

 Why isn't the government sector using the technology?

 What are the Latest Developments in accounting Systems, and how
have those trends have been used in the government sector?
 What level of consultation and staff training will we need before
and after the implementation?
  What support and outcome will we get after implementing the
accounting software?
 How are future upgrades of accounting software managed in the
government sector?

Why isn't the government sector using the technology?

The private sector has embraced technology and seeing increases in

productivity than the government sector. The private sector is continually
trying to transform itself to stay competitive in changing economy; the
public sector often gets bogged down in bureaucratic policies related to
workforce management. Unfortunately, many public agencies and
organizations rely on old employment policies and human resource
management tactics. Such as Manual attendance, manual bookkeeping,
Manual record storing, etc. Due to lack of knowledge of in the
government sector employees, Political and social influences, Law and
Regulations, and lack of implementation training

lack of implementation training

sometimes management views the process of installing and implementing

an accounting system ask Merely installing the program files configuring
the settings inputting beginning balances granting permission to
individual users specifically employees should be trained in numerous
ways.

How to extract and organize data from the old system

How to import the initial data into the new systems

How to access and navigate the new system

How to enter data new vendors, new customers, new inventory items,
and other items

How to produce financial statements and records, including how to edit

and customize those reports

How to enter and process financial transactions, including invoices

payments, bank deposits adjustments, and other transaction

Management personnel should also be trained on how to access and use

the systems and produce and read the financial statements and
informational reports.

What are the Latest Developments in accounting Systems, and how have
those trends have been used in the government sector?

Accounting Trends

 Data Analytics and Forecasting Tools

 Digital Transformation
 Data Security
 Outsourcing
 BlockChain

1. Data Analytics and Forecasting Tools

Amid the accounting guidelines for both minor businesses and larger
corporations, increasing the use of budgeting, forecasting, and planning
Software, except data analytics and visualization tools, is one of the best
impactful. Finance purposes are becoming considerably more analytical
and technological these days. As proof of the demand for the increasingly
analytical and tech-savvy accountant, the Institute of management
accountants launched its data Analytics and visualization Fundamentals
Certificate. The package aims to equip accounting and finance specialists
with the strong critical thinking, problem-solving, and technical abilities
required to develop business strategies.

2. Digital Transformation

Quicker than ever before, companies are changing how they do business
with digital technology support, and accounting and finance groups are
the central division among all the divisions. They have put processes to
account for new revenue from subscription models, new channels, new
physical and digital product aids, and more. The most persistent
accounting challenge is leveraging technology to help the business
strategy and familiarize with changing conditions.

3. Data Security

Data breaches are a higher threat nowadays, and accounting departments

are the leading aim. The breaches can be caused to identity theft or the
stealing of organization accounting data when identifying an email is
disguised as a reliable source. Having quality cybersecurity training will
be lead to success for an accounting firm in the near future. Training in
identifying possibly harmful emails and spotting attacks will become
crucial for accounting firms, which are capable of looking at the details
and spotting abnormalities.
4. Outsourcing

All organizations can find benefits from outsourcing finance and

accounting functions. Minor companies outsource accounting data to
avoid hiring extra headcount. Larger companies also outsource some or
entirely of their accounts payable, and they do this to save money.
Outsourcing accounting functions are popular among many businesses.
Additionally, outsourcing benefits include cost savings, gaining flexibility,
access to finance, and accounting expertise.

5. Blockchain

Blockchain is a significant trend in accounting that has been increasing in

popularity over the last few years. Emerging technology refers to using a
network of independent computers to record, share and synchronize
transactions into an immutable ledger of accurate financial information.
Continued investment in blockchain technology in 2020 is poised to yield
real-world results beyond the big players as it becomes more practical,
scalable, and integrated into the operational structure of smaller firms
and traditional global corporations alike.

According to Forbes, blockchain itself can be seen as a technology based

on accountancy. It records and stores assets, liabilities, transactions and
provides methods of recording cash flow and reconciling accounts. It's
"natural" for the accounting industry, which to date has relied on paper
trails and even cloud-based technology to perform accounting functions
and transactions and to ensure that regulatory requirements are met.
Blockchain is a formidable trend in accounting, and its applications will
only continue to increase. It will change the way accountants operate.
Accounting won't become irrelevant but instead will become more
efficient. The same way computers and the internet have changed
workplaces across all industries; blockchain will provide solutions to
industry-wide issues in accounting.

The accounting industry promises a significant future for anyone willing

to adopt new skills and technology. This is where Ottawa's Master of
Accountancy degree program can help. This 30-hour online graduate
professional degree will prepare graduates for the aforementioned
accounting trends, provide for career advancement, and the opportunity
to increase earning potential. The MAcc will also help you meet the 150-
hour educational requirement to sit for the Certified Public Accountant
(CPA) exam in most states.

What level of consultation and staff training will we need before and
after the implementation?

Accounting software systems have arrived at levels of complicity, so make

sure you know what to expect from your solution. For example, simple
solutions can be instantly installed via simple download, while enterprise-
level Software will involve consultation and configuration from your
software provider. Also, please inquire about the training your staff will
need to navigate the Software, what it will cost, and determine whether
you or the vendor is tasked with coordinating the activity.

What support and outcome will we get after implementing the accounting
software?
1. Traditional accounting information is dated. With manual accounting,
accounting information is never up-to-date except for the instant that
someone manually closes a period. But integrated cloud accounting is
automatically and continuously updated by operations for a complete,
accurate, real-time picture of where the business stands.

It requires a lot of time and labor to manually take all of the information
from operations and re-key it into an accounting system.

2. Traditional accounting takes too long. It requires a

lot of time and labor to handle all of the information from operations
manually and re-key it into an accounting system. With integrated
accounting, the data flows automatically from operations to accounting
to eliminate rote tasks.

3. Traditional accounting invites errors. Manual data entry is always an

error opportunity. So re-keying information from order management to
accounting for every order leads to mistakes. Integrated accounting
removes error opportunities by removing manual re-keying.

4. Traditional accounting requires manual sorting. Professionals have to

re-key accounting data in traditional systems, they first have to identify
what it is and sort it into cumbersome batches. Integrated accounting
systems know what A/R is, what A/P is, and what belongs where so
information is automatically posted to the right place.

5. Traditional accounting means missed opportunities. You can't take

traditional accounting with you. Integrated cloud accounting opens a
world of possibilities. Accounting is tied back to orders, so it's easy to
invoice and receive payment right on the spot – even if that spot is miles
from the office.

Even the most straightforward implementations can be become confusing

from time to time. It is all but guaranteed net questions and issues will
arise. Be sure to ask software vendors about what support they provide
after the Software is in place and whether permission is covered in the
software subscription. Put that in there.

How are future upgrades of accounting software managed in the

government sector?

Find out if the vendor will automatically update you to newer versions of
your Software and apply feature enhancement as they are released. Also,
ask about the impact upgrades will have on your business?

Will they require downtime?

If so, can they be scheduled during off-hours?

Will the vendor provide training for your staff on the new features?

And most importantly will you need to pay anything additional for
updates, or does your subscription include them?