ST AUGUSTINE UNIVERSITY OF TANZANIADEPARTMENT OF ACCOUNTING AND FINANCE

The challenges facing accountants when preparing bank

reconciliation

A case of Azania Bank, Mwanza City

MPULU SIRA.

( BBA 26375 )

A research report is submitted to the faculty of Business

Administration as partial fulfillment of the requirements for the

Award of a Degree in Bachelor of Business Administration at St.

Augustine University of Tanzania (SAUT), Mwanza.

MAY, 2014

i

DECLARATIONI Sira Mpulu, hereby declare that this research paper is a

result of my own effort and that it has not been submitted or

presented for similar qualification at this Institute or any

other High learning Institute. No part of this work will be

produced without my consent or that of Saint Augustine University

of Tanzania (SAUT).

Name of student: Sira Mpulu

Signature: ……………………..………… Date: ………………………………

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CERTIFICATIONThis undersigned certified that he has gone through this research

report on “The challenges facing accountants while preparing a

bank reconciliation-A case study of Azania Bank “and hereby

recommends its acceptance by the Accountancy and Finance

Department of SAUT in Partial Fulfillment of the Requirements for

the award of Bachelor of Business Administration (BBA).

Supervisor

Signature ……………………………… Date …………………….

Name: Mr. Oscar Koga.

3

COPYRIGHTAll right reserved this work may not be reproduced without prior

permission from copyright holder or St. Augustine University of

Tanzania (SAUT).

© 2014, Sira Mpulu

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DEDICATIONThis research paper is dedicated with love and appreciation to my

beloved parents Mr. Beatus Mpulu and Mrs Jessica Kyatika for

their care and monitoring.

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ACKNOWLEDGEMENTI would like to express my sincere gratitude to Almighty God not

only for giving me an opportunity to life but also for making me

able to understand what learn and being taught by teachers.

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I then owe my heartfelt thanks to my research supervisor, Mr

Oscar Koga for her advises guidance, criticism and encouragement

during the whole period of supervision.

I certainly would be remiss if do not acknowledge my thanks to

the respondents who spent their potential time responding to

questionnaire and interview.

I also extend my heartfelt appreciation to my brother, Noel

Mpulu, Herry Mpulu and my young sister Happiness Mpulu for their

support during the preparation of this research paper.

Lastly, I would like to thank my beloved friends Berther

Bernard, Grace Peter and Mercy Samwel for their cooperation

during the preparation of this research paper.

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LIST OF TABLESTable 1: Involvement of staff on measure taken by accountant to overcome challenges in bank reconciliation preparing…………………………………………………………………………13Table 2: Is there challenges facing an accountant when preparing bank reconciliation………..14Table 3: Extent of challenges accountant encounter in preparing bank reconciliation………...15Table 4: Challenges are mostly in Azania bank that facing an accountant…………………….15Table 5: Response of management could be cause of challenge that facing an accountant in bank reconciliation preparing………………………………………………………………………….17Table 6: Response of bank reconciliation done properly…………..............................................17

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ABSTRACTThe research was about to find out the challenges facing

accountants when preparing bank reconciliation, conducted

at Azania Bank-Nkurumah branch. The specific objective of

the study were to find out the measures taken by

accountants to overcome the challenges they face in the

preparation of bank reconciliation statement, to find out

the challenges facing the accountant in preparing bank

reconciliation and lastly to find out the causes of

these challenges faced by accountants in the preparation

of bank reconciliation statement.

Literature review has been used to elaborate bank

reconciliation and concepts related to the study. Data

9

were collected by using questionnaires and sample size

used by the researcher was 10.The researcher used

qualitative research technique to analyze data collected.

The research findings were according to the specific

objective and questions asked regards to the specific

objectives. The findings discovered that there are

challenges facing accountant when preparing bank

reconciliation, there due to late report from head

office, time, economical, social factor, system slowness

and no emphases on working with time. The researcher

comes up with the recommendation that management should

improve the worker competence through training and

providing short courses, also effective communication

should be emphasis.

The significance of this study it will help the

management to appreciate the performance and challenges

facing accountant when preparing bank reconciliation. The

study would also assist the management to improve bank

reconciliation preparation in case of the recommendation

which addressed by the administration, further more the

studied can be used as additional reference to other

researcher on bank reconciliation.

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TABLE OF CONTENTSDeclaration....................................................ICertification.................................................IiCopyright....................................................IiiDedication....................................................IvAcknowledgement................................................VList Of Tables................................................ViAbstract.....................................................ViiCHAPTER ONE....................................................1INTRODUCTION...................................................11.0 Introduction...............................................11.2 Background of the problem..................................11.3 Statement of Problem.......................................21.4 Objective of the Study.....................................31.4.1 General Objective........................................31.4.2 Specific Objective.......................................31.5 Research Questions.........................................31.6 Significance of the Study..................................31.7 Limitation of the Study....................................41.8 Delimitations of the Study.................................4CHAPTER TWO....................................................5LITERATURE REVIEW..............................................52.0 Introduction...............................................52.1 Theoretical Literature.....................................52.1.1 Main Objective of Bank Reconciliation....................52.1.2 Purpose of Bank Reconciliation...........................52.1.3 Causes of Bank Statement Balance to be Larger than Depositors.....................................................5

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2.1.4 Bank Reconciliation Procedure............................62.2 Related Literature.........................................72.3 Empirical Theory...........................................82.3.1 Bank Account.............................................82.3.2 Bank Reconciliation......................................82.3.3 Bank Statement...........................................82.3.4 Internal Control Considerations..........................8CHAPTER THREE..................................................9RESEARCH METHODOLOGY...........................................93.0 Introduction.............................................93.1 Research Design..........................................93.2 Area Of The Study........................................93.3 Target Population And Sample.............................93.4 Sampling Techniques.....................................103.4.1 Sampling Techniques...................................103.5 Types Of Data To Be Collected...........................103.6 Data Collection Methods.................................113.7 Data Analysis Methods...................................11CHAPTER FOUR..................................................12RESEARCH FINDINGS.............................................124.1 Introduction..............................................124.2 Objective one: To find out measures taken by accountants to overcome the challenges they faces in the preparing bank reconciliation statement......................................124.3 Objective two :To find out the challenges facing the accountant in preparing bank reconciliation...................144.4 Objective three :To find out the causes of challenges faced by accountant when preparing bank reconciliation............................17CHAPTER FIVE..................................................19DISCUSSION, CONCLUSION AND RECOMMENDATIONS....................19

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5.1. Summary..................................................195.2. Discussion...............................................205.2.1. To find out measures taken by accountants to overcome the challenges they faces in the preparing bank reconciliation statement ....................................................205.2.2. To find out the challenges facing the accountant in preparing bank reconciliation ................................205.2.3. To find out the causes of challenges faced by accountant when preparing bank reconciliation............................205.3. Conclusion...............................................215.4. Recommendations..........................................21References....................................................23APPENDIX I....................................................24APPENDIX II……………………………………………………………………………………25

CHAPTER ONE

INTRODUCTION

1.0 Introduction

This is chapter consist of the introduction to the topic,

background of the problem, statement of the problem, research

objectives, research questions, significance of the problem,

limitation of the study and delimitation of study.

1.2 Background of the problem

Azania Bank Ltd formally known as 1st Adili Bancorp Limited is

now a Commercial Bank was established in 1995 as a financial

institution following the liberalization of the banking sector.

The initiative of setting up the bank came from indigenous

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Tanzanians who teamed up with the two social security fund in the

country, National Social Security Fund (NSSF) and Parastatal

Pension Fund (PPF) to support the start up of the bank. The Bank

is currently providing banking services at 15 locations in

Tanzania whereby 11 are full branches and 4 are agencies. In

Mwanza the Bank has two branches, one at  Mwaloni near Mwaloni

Fish Market and the other one is at Nkrumah situated along

Nkrumah Street .

In Azania Bank of Mwanza branch, bank accounts are reconciled

manually by bank customers. A bank customer visually compares a

printed bank statement and corresponding customer accounting

information, the visual process tends to be time consuming,

tedious and error level.To reconcile an account the customer or

other reconcile typically sorts the records into numerical order

and arranges the cancelled checks and bank statement records

together with the customer own accounting information so that

they are all in view, for each transaction record on the bank

statement.

Some banks provide customers with a bank statement in electronic

form. Typically a customer electronically enters the data from

the electronic bank statement into the customer’s computer and

the customer’s computer compare the bank data with the customer

data, but this method offers no assistance in resolving

discrepancies.

Due to liquidity problems the government of Tanzania decided to

make institutional and economic innovation towards the

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impediment of the financial systems. Among the measures adopted

is the liberalization of the market forces so as to create the

fair play ground to the economic system. The adopted

liberalization of economic system increased the efficiency,

liquidity and enhances competition in the financial system

(Aikaeli, 2008).

1.3 Statement of Problem

Bank reconciliation is important, when each month depositors

receive bank statements that summarized the activities that have

occurred in the bank accounts for the period. Such activities

include information about the physical and direct deposit, check

that have cleared, direct withdraw and service charge or interest

that has been earned on the account. It was presumed that the

accounts who are responsible in the preparation of bank account

and cash account might in one way or another faces many

challenges, finally they give out wrong statements.

The two balances rarely disagree because of recording timing

difference, errors, omissions and forgeries that are how could

occur in Azania Bank. This situation leads to establish false

cash balance in that account and does not explain well the

difference between cash balance according to the bank record and

cash balance according to the organization record.

With reference to partial indices, prior literature identifies

two ways of classifying adjustments reported within the

reconciliation statement, a standard approaches or a transaction

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approach the first combine’s adjustments with reference to the

standard which requires the adjustments (Weetman and Gray 1990).

Two very clear type of performance measure from companywide

perspective are those relating to financial and strategic

performance. Achieving acceptable level of financial results is

crucial. The argument is that without adequate profitability a

company’s pursuit of its vision as well as its long term health

and ultimate survival is jeopardized. Besides, neither

shareholders nor creditors will continue to sink addition funds

into an enterprise that can’t deliver satisfactory financial

results. Users’ judgments of managers and auditors the impact of

accounting treatment and reconciliation. According to Thompson

and Strickland (2001)

This study was therefore focusing on examining the challenges

that affect the accountant in preparing bank reconciliation in

order to ensure that resources of the organization are safeguard

and that the organization achieve its objective that is to find

out the measures taken by accountants to overcome the

challenges they face in the preparation of bank reconciliation

statement, to find out the challenges facing the accountant in

preparing bank reconciliation, to find out the causes of these

challenges faced by accountants in preparation of bank

reconciliation statement in the Azania Bank-Mwanza City

1.4 Objective of the Study

1.4.1 General Objective

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The overall objective of this study was to evaluate the

challenges facing accountants when preparing bank

reconciliation. A case of Azania Bank-Mwanza City

1.4.2 Specific Objective

i. To find out the measures taken by accountants in

Azania Bank-Mwanza City to overcome the challenges they

face in the preparation of bank reconciliation statement.

ii. To find out the challenges facing the accountant in

preparing bank reconciliation in Azania Bank-Mwanza City.

iii. To find out the causes of these challenges faced by

accountants in Azania bank –Mwanza City in the

preparation of bank reconciliation statement.

1.5 Research Questions

i. What were the measures taken by accountants in Azania

Bank-Mwanza City to overcome the challenges they face in

the preparation of bank reconciliation statement?.

ii. What were the challenges facing the accountant in

preparing bank reconciliation in Azania Bank-Mwanza

City?.

iii. What were the causes of these challenges faced by

accountants in Azania bank –Mwanza City in the

preparation of bank reconciliation statement?

1.6 Significance of the Study

The study was intended to investigate the challenges facing

accountant when preparing bank reconciliation.

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The study was using much number of people in the sense that

it will help the management of Azania bank to appreciate the

performance and challenges facing accountant when preparing

bank reconciliation.

The study would also assist the management to improve bank

reconciliation preparation in case of the recommendation

which addressed by the administration.

The studied can be used as additional reference to other

researcher on bank reconciliation.

1.7 Limitation of the Study

The researcher faced a problem of accessibility of data due to

the nature of the studies and lack of cooperation with the

respondents. This was because most of the data of information was

more confidential and become problem to a researcher. Also the

results obtained may applicable to other organization.

1.8 Delimitations of the Study

The research was a case study to be conducted at Azania Bank

Mwanza City and the researcher will be dealing with the staffs

who are working with this organization specifically those who are

in the Finance and Accounting department, as well as the Auditing

department. The research method to be used in this study was

corresponding to the researcher’s professional skills and

knowledge which is that of a level of a third year student

pursuing a Bachelor of Business Administration.

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CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction

The main objective of this chapter is to identify and review

various literatures related to the problem of the study as well

as to draw its relevance to the study. Therefore theoretical and

empirical backgrounds laid by various authors concerning the

concept of Bank reconciliation statement in organization.

2.1 Theoretical Literature

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2.1.1 Main Objective of Bank Reconciliation.

According to cherry Donald ( 2008) .Is to determine the correct

cash balance. Therefore, items that the bank has not yet recorded

must be added to, or deducted from the balance shown on the bank

statement, while items that the company has not yet recorded must

be added to, or deducted from the balance show in the company’s

cash account.

2.1.2 Purpose of Bank Reconciliation.

According to Barbara Chiappetta (2005) purpose of bank

reconciliation is to balance of checking accounting reported on

the bank statement rarely equals the balance in the depositors

accounting records. This is usually due to information that one

party has that the other does not. We must therefore prove the

accuracy of both the depositor’s records and those of the bank.

This means we must reconcile the two balance and explain or

accounting for any differences in them.

2.1.3 Causes of Bank Statement Balance to be Larger than

Depositors

According to Edmond Thomas ,p(2000) Depositors cash balances is

lesser than bank statement due to;

i. Outstanding checks, These are disbursements that have

been properly recorded as cash deductions on the payers

books. However, the amount have not been deducted from

the payers bank account because the checks have not yet

been presented by the payee to the bank for payment.

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ii. Deposits made by the bank, these are additions to the

depositors account made directly by the bank. They may be

the result of collections made by the bank on behalf of

depositor or of interest paid to the depositor by the

bank.

Causes Of Bank Statement Balance To Be Less Than Depositors.

Depositor cash have larger balances than bank statement

because of :

a) Service charges, these are fees charged by the bank for

services performed or as a penalty for the depositors

failing to maintain a specified minimum cash balance

throughout the period.

b) Deductions of non-sufficient funds, these are checks that

were deposited. However when the checks were submitted

for payment to the bank on which they were drawn, the

account did not have enough funds to cover the amount of

the checks. When such checks are returned, they must be

deducted from the depositor’s bank account.

c) Depositor in transit. These are deposits that have been

recorded by the depositor on the accounting records but

have not yet been recorded by the bank.

d) Errors. Both banks and depositors can make errors. Bank

errors might not be discovered until the depositor

prepares the bank reconciliation. Also depositor errors

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are sometimes discovered when the bank balances is

reconciled.

2.1.4 Bank Reconciliation Procedure.

According to Kieso Donald e (1999) while preparing bank

reconciliation statement should consider the following steps:

i. Compare the individual deposits on the bank statement

with deposits in transit from the preceding bank

reconciliation and with the deposits per company

records or copies of duplicate deposit slips, deposits

recorded by the depositor that have not been recorded

by the bank represent deposits in transit and are added

to the balance per bank.

ii. Compare the paid checks shown on the bank statement or

the paid checks returned with the bank statement with.

a) Checks outstanding from the preceding bank

reconciliation.

b) Checks issued by the company as recorded in the cash

payment journals. Issued checks recorded by the company

that have not been paid by the bank represent

outstanding checks that are deducted from the balance

per the bank.

iii. Note any errors discovered in the foregoing steps and

list them in the appropriate section of the

reconciliation schedule.

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iv. Trace back memoranda to the depositor’s records. Any

unrecorded memoranda should be listed in the

appropriate section of the reconciliation schedule.

2.2 Related Literature

Ronald A. Coen,(2000) on his report of ”Review of Controls Over

the Bank Reconciliation Process” . Recommend that the Department

of Finance prioritize the automated depository request to be

completed in the 6 to 12 months. He believes the time frame that

this particular automated shortcoming has been in place should be

considered in the criteria for prioritizing its ranking.

Implementing this recommendation will speed up the bank

reconciler’s process and prevent manual errors, reduce overtime

and the need for additional outside help.

Dr.Ayayi, M.A,(2004) developed interest in the same subject and

researched on determinants of fraud in Nigerian banking industry.

The study recommends improvement in management should not

hesitate to come to the aid of employees, any time there is a

genuine financial request particularly in emergence situations.

Such assistance does not only eliminate the tendency to defraud

the organization, but helps to cultivate a group of dedicated and

highly positive workforce. Also in recruiting key personnel who

are to handle certain sensitive operations.

Jeffrey Griffiths(2000) on his report in review of the city’s

bank reconciliation and deposit procedures. It is recommended

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that the Chief Financial Officer and Treasurer implement formal

policies and procedures with respect to the reconciliation of the

City’s bank accounts including the bank reconciliations for all

bank accounts be completed within 30 days of month-end all,

reconciling items be properly investigated on a timely basis and

supported by appropriate documentation, supervisory review of

each bank reconciliation include the review of unusual

reconciling items and signing of each reconciliation as evidence

of supervisory approval, procedures be implemented to ensure

timely and accurate recording of reconciliation adjustments in

the general

2.3 Empirical Theory

2.3.1 Bank Account

According to Needles Belverd (1990) Is an account a business

opens with a bank, into which cash is deposited for safekeeping

and from which cash is withdrawn by writing checks.

2.3.2 Bank Reconciliation

According to Fizzell Maureen.R (2008) Is an important internal

control procedure used by almost every company which ensures that

any differences between the accounting records for cash and the

bank records are identified and explained.

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2.3.3 Bank Statement

According to Parry Robert (2005) Is a statement of account

issued by a bank to each deposition once a month. The statement

shows the balance at the beginning of the period, deposits and

other amounts added during the period, check and other amounts

subtracted during the period, the balance at the end of the

period. OR

According to Anderson Henry R (1990) Is a

statement which shows the balance at the beginning of the month,

the deposits, the checks paid, other debits and credit during the

month and the balance at the month.

2.3.4 Internal Control Considerations

According to penne ainsworth (2000) As part of

good control over cash, companys should have their bank

reconciliation done on a regular basis by a employee who is

involved in neither the receipt nor the deposit of cash, nor the

approval or payment of cash payments for liabilities. This

segregation of duties serves as an effective check on the persons

writing the checks on making deposit at the bank because the

person doing, the bank reconciliation would detect any

irregularities.

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CHAPTER THREE

RESEARCH METHODOLOGY

3.0 Introduction

This chapter comprises of the research design, area of the

study, target population, sampling techniques, data collection,

data collection procedures, data collection methods and data

analysis methods.

3.1 Research Design

The researcher used a case study design in conducting this study

due to the facts that, the study was carried on a limited time

and funds hence only a single organization was considered. Due to

these, a design chosen earlier was appropriate because it is less

expensive compared to other methods of data collection as well as

it is flexible in terms of data collection methods to be used as

it accommodates all data collection instruments such as interview

and questionnaire. Type of research used are qualitative

research.

3.2 Area Of The Study

The study was conducted at the Azania Bank in Mwanza branch. The

researcher choose this place because is one of the bank in Mwanza

which provide their information accuracy and thus he believes it

was provided to him with relevant results considering the topic

26

under investigation, as well as the fact that the study was

conducted in the department.

3.3 Target Population And Sample

The research involved the departments of the accountancy and

finance in the organization mentioned as the targeted population

in this study at Azania bank. A sample of 10 respondents was used

in this study manager, accountants and seven staff teller were

incorporated in this study.

3.4 Sampling Techniques

3.4.1 Sampling Techniques

The researcher used two types of sampling techniques in carrying

this study and these are:-

(i) Judgmental sampling.

This type of sampling was applied by the researcher in order for

him to be able to obtain list of heads of unit to be interviewed.

In this method the researcher has appropriate chance to select a

sample on the basis of his own knowledge of population, its

element and the nature of his research.

(ii) Simple random sampling

This type of sampling was used by the researcher in order to

enable him to obtain a representative sample because under

this type of sampling all elements in a given population was

an equal and independent chance of being selected in a

particular sample to be chosen.

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3.5 TYPES OF DATA TO BE COLLECTED.

The researcher was collecting two types of data for the purpose

of this study and these are:-

i. Primary data.

The primary data are important because they provide

deep information to the researcher from the respondents. Under

this primary data was collected from head of departments and

stuffs of Azania Bank.

ii. Secondary data.

These are data which was already collected, analyzed and

published by another organization concerning the study. The

researcher was obtain this kind of data from various

organization records such as journals, bank statement and

other documents that was found there which contains relevant

information for the study.

3.6 Data Collection Methods. Data collection procedures refers

to a way of gathering information to serve or prove some

facts .Data was obtained through interview ,questionnaires,

observation and documentation

(i) Interview.

The researcher used both structured and unstructured

interviews so as to be able to create good relationship

between the interviewer and the interviewee which were led to

smooth flow of required information to the researcher. This

method used to collect information from various accounting

28

department staffs as well as other officers like the Chief

Accountant and others which the researcher saw relevant.

(iii) Questionnaires.

The researcher uses both open ended and closed ended

questionnaires which were distributed to various staffs and

officers within the organization which the researcher saw

appropriate so as to be able to obtain required and relevant

information. The researcher decided to use this method because

it saved both time and money.

(iv) Documentation.

The researcher used this method to collect secondary data from

the organization by reading as well as examining the available

documents in the organization which he saw relevant including

bank statements.

3.7 Data Analysis Methods

The researcher used two types of data analysis methods so as come

up with sound analytical clarity for the purpose of this study,

and these methods are:-

(i) Quantitative method.

Under this method the researcher used various mathematical

techniques such as percentages and tabulation to analyze

relevant data which were collected in terms of numbers so as

to be able to provide meaningful information.

(ii) Qualitative method.

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Under this method the researcher used factual and logical

statements made to analyze the data gathered in a non numeric

form. These factual and logical statements which are made were

basically include various explanatory phrases of what were

obtained from the field, and thus this method was mostly

appropriate during the time of making comments on the

information obtained.

CHAPTER FOUR

RESEARCH FINDINGS

4.1 Introduction

This chapter represents and explains briefly what was obtained by

the researcher during his research at Azania Bank Nkurumah

branch. It gives out the general picture of bank reconciliation

in banking for all bank sectors in Tanzania. The information

provided is the result of observations of the researcher and

30

interviews which were conducted to staffs and managers. The

researcher has basically carried out the study within the limit

of research investigative questions, therefore within this

chapter, the analysis of data and research findings have been

interpreted with respect to research questions developed to guide

the study.

4.2 Objective one: To find out the measures taken by accountants

to overcome the challenges they faces in the preparing bank

reconciliation statement.

The question asked in this objective was;

Question one: Do you think the accountant use sufficient measures to overcome the

challenges?

In the question the researcher intended to find out measure taken

by accountants facing when preparing bank reconciliation. The

research question was to be answering the specific objective

number one, before knowing the challenges the research was

interested to know if there were any measures taken by accountant

to overcome it when preparing bank reconciliation

Table1: Sufficient measures taken by accountant to overcome

challenges in preparing bank reconciliation.

31

CATEGORY RESPONSE PERCENTAGE (%)

Strong agree 10 100%

Agree 0

0%

Disagree 0

0%

TOTAL 10

100%

Source: Research Survey, 2014

From the table 1, it shows that 10(100%) of respondent says

accountant use sufficient measures to overcome challenges faces

when preparing bank reconciliation of Azania bank. Strong agree

it imply that there’s measure taken by accountant to overcome

challenges.

Question two: What are measures should be taken to overcome challenges that are

facing an accountant in your Organization?

The researcher was also interested to know how accountants

overcome that challenges when preparing bank reconciliation in

Azania bank.

Response: The measures taken by accountants in Azania Bank to

overcome the challenges they face in the preparation of bank

reconciliation statement are as follows;

Increase in number of staffs, this is because the accountant

fail to meet the deadline of preparing bank reconciliation.

Encourage timely delivery of the works.

Economically empowering.

By working hard, professionally as well as self

discrimination on the work.

Through immediate contact with head office for quick report

to reconcile.

32

Therefore from above findings it shows that there are

measures taken to overcome challenges that are face an

accountant when preparing bank reconciliation.

4.3 Objective two: To find out the challenges facing the

accountant in preparing bank reconciliation in Azania Bank.

The question asked was;

Question one: Is there challenges which facing an accountant when preparing

bank reconciliation?,

In this question the researcher was interested to find out the

challenges facing the accountant in preparing bank reconciliation

in Azania Bank. First the researcher was interested to know if

the organization follows the rule, guidelines and procedures in

preparing of bank reconciliation and if all accountants use the

same procedure in preparing that bank reconciliation.

Table2.Is there challenges which facing an accountant when

preparing bank reconciliation.

CATEGORY RESPONSE PERCENTAGE (%)

Agree

6

60%

33

Disagre

e

4

40%

TOTAL 1

0

100

%

Source : Research Survey, 2014

From the findings table 2 it shows that 6(60%) of respondents

said there are challenges facing an accountant when preparing

bank reconciliation and 4(40%) of respondent Said there are no

challenges facing an accountant when preparing bank

reconciliation. This implies agree there are challenges facing an

accountant. Also the researcher was aimed to find out the extent

of challenges that accountants encounter in preparing bank

reconciliation.

Question two: what is extent of challenges that accountant encounter in

preparing bank reconciliation? The table below shows the finding.

Table 3: Extent of challenges accountant encounter in preparing

bank reconciliation.

CATEGO

RY

RESPONSE PERCENTAGE (%)

Stron

g

0 0%

Weak 2 20%

34

Average 8 80%

TOTAL 10 100%

Source: Research Survey 2014

From table 3 findings, it reveals that there is challenge an

accountant encounter when preparing bank reconciliation at Azania

bank at extent of average 8(80%) also the respondent views show

that 2(20%) challenges are weak. It implies that average is rate

which has higher percentage that means an accountant have neither

strong challenge nor weak challenge.

Also researcher was designed to find out challenges are mostly in

Azania bank that is facing an accountant.

Question three: which challenges are mostly in Azania bank that is facing an

accountant?

The table 4 shows the finding.

Table 4: Challenges are mostly in Azania bank that is facing an

accountant.

CATEGORY RESPONS

E

PERCENTAGE (%)

Education

1

10%

Economical

6

60%

35

Socially

3

30%

TOTAL 1

0

100%

Source :Research Survey, 2014

From table 4 findings, it shows that Education is 1(10%) of the

respondents said that are mostly challenges facing accountant in

preparing bank reconciliation, while 6(60%) respondent said that

is Economical challenge facing accountant when preparing bank

reconciliation in Azania bank and 3(30%) said that there is

Social challenge facing an accountant in preparing bank

reconciliation. This implies high rate that is 6(60%) is the most

challenge facing an accountant in Azania bank.

Question four: What is your opinion on challenges facing an accountant on bank

reconciliation?

The researcher was also concerned to know opinion on challenges

facing an accountant on bank reconciliation in Azania bank.

Response: Opinion on challenges facing an accountant on bank

reconciliation is as follows;

Education should be given to staffs.

Economical support due to excess of jobs

To maintain effective communication with head office

reports generation center people.

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Question five: What are challenges encounter accountant during preparation of

bank reconciliation?

Researcher paying attention to know the challenges encounter

accountant during preparation of bank reconciliation in Azania

bank.

Response; The challenges encounter an accountant during

preparation of bank reconciliation are as follows;

Late reports from head office.

Time.

Economical.

Social.

Lack of competence.

.

4.4 Objective three: To find out the causes of challenges faced

by accountant

when preparing bank reconciliation.

The question asked was;

Question one: Is management could be a cause of challenge that facing an

accountant when prepare bank reconciliation?

In this question the research was attracted to know the cause

of challenges facing an accountant in Azania bank while

preparing bank reconciliation. The question was to answer

objective number three.

37

First the researcher was interested to be familiar with causes

of challenges facing an accountant when preparing bank

reconciliation in Azania bank.

Table 5 is the finding from respondent at Azania bank.

Table 5: Response of management could be cause of challenge

that facing an accountant in bank reconciliation preparation.

CATEGORY RESPONSE PERCENTAGE (%)

Agree 8 80%

Disag

ree

2 20%

TOTAL 1

0

100%

Source:Research Survey, 2014

From the table 5 it indicates that cause of challenge facing

an accountant when prepare bank reconciliation at Azania bank,

the respondents that said agree were 8( 80%) while the other

respondent said disagree were 2(20%).It mean that high rate

represent management is the cause of challenge facing an

accountant.

Also the research was expected to know if the bank

reconciliation done properly.

38

Question two: Is the bank reconciliation done properly?

Table 6: Response of bank reconciliation done properly.

CATEGORY RESPONSE PERCENTAGE (%)

Strong Agree 1

0

100%

Agree

0

0%

Disagree

0

0%

TOTAL

10

100%

Source: Research Survey,2014

From table 6 findings it indicates that bank reconciliation at

Azania bank done properly for 10(100%).It imply higher rate of

10(100%) that bank reconciliation done properly.

The researcher was also concerned to know the causes of

challenge facing an accountant when preparing bank

reconciliation at Azania bank.

Question three: What are causes of that challenge in your Organization?

Response: causes of challenge facing an accountant when

preparing bank reconciliation are as follows;

39

Ineffective of staffs at head office to work on

time.

System slowness.

Economic factor.

Social factor.

No emphasis on working with time.

Also researcher was interested to identify how causes of

challenge facing an accountant on bank reconciliation preparation

can be avoided in Azania bank.

Question four: How causes challenging an accountant on bank reconciliation can

be avoided?

Response: Causes of challenging an accountant on bank

reconciliation preparation can be avoided by;

Increasing number of staffs.

Job specification.

Timely delivery of reconciling reports to ease fast

reconciliation.

Therefore from the above findings it shows that there are causes

of challenge facing an accountant while preparing bank

reconciliation in Azania bank and also from above findings

researcher shows that there are some ways of avoiding causes of

challenge facing an accountants while preparing bank

reconciliation.

40

CHAPTER FIVE

DISCUSSION, CONCLUSION AND RECOMMENDATIONS

5.1. Summary.

The study designed to find out the challenge facing accountants

when preparing bank reconciliation in Azania bank. The study was

consisting of three specific objectives and some questions. Also

literature review was made in chapter two was according to the

objectives of the study. The chapter three covered on general

research approach, design, and area of study, target population,

sampling technique, type of data collection, data collection and

data analysis methods. The study used both qualitative and

quantitative approach. The targeted population was the manager

and accountant staffs in the Azania bank. Data analysis methods

based on types of instruments used to collect data. Data from

questionnaire were analyzed to get percentages and then were

tabulated accordance with the information needed. Therefore the

conclusion and recommendations were made on the data obtained

after they were gathered and analyzed due to the findings adhered

to the specific research objectives were now drawn.

5.2. Discussion.

41

5.2.1. To find out the measures taken by accountants to

overcome the challenges they face in the preparation of bank

reconciliation statement.

Department of finance prioritizes the computerized depository

request to be completed in the 6 to 12 months. The time frame

that this particular computerized shortcoming has been in place

should be considered in the criteria for prioritizing its ranking

that lead to speed up the bank reconciler’s process and prevent

manual errors and reduce overtime. Whereby from this study

respondents consider that increase number of staffs, because the

accountant fail to meet deadline of their work due to have a lot

of accounts to reconcile. Also respondent consider timely of the

works that’s management provide 30 day of month end preparing

reconciliation.

5.2.2. To find out the challenges facing the accountant in

preparing bank reconciliation in Azania Bank.

Management should not delay to come to the aid of employees, any

time there is a real financial request particularly in emergence

situations. Such assistance does not only eliminate the tendency

to defraud the organization, but helps to cultivate a group of

dedicated and highly positive workforce. Also in recruiting key

personnel who are to handle certain sensitive operations. While

this study respondent said competence, effective communication,

time and late reports from head office that’s challenges facing

accountant when preparing bank reconciliation in Azania bank.

42

5.2.3. To find out the causes of challenges faced by accountant

when preparing bank reconciliation.

Formal policies and procedures with respect to the bank

reconciliations for all bank accounts be completed within 30 days

of month-end all, reconciling items be properly investigated on a

timely basis and supported by appropriate documentation. Whereby

respondent of this study believed causes of challenges facing an

accountant when preparing bank reconciliation in Azania bank are

System slowness, Economic situation of accountant, Delivery time

of report and Job specification.

5.3. Conclusion.

After the critical and detailed analysis made on the data

collected, the analysis has made clear expression that

accountants have challenges when preparing bank reconciliation.

The researcher has concluded that because the population studied

and their responses have proved that they are no emphasis on

working with time, system slowness, no job specification, social

problem, technological problem, low salary, self discrimination.

Also according to other respondent management was blame to have

poor economic empowerment to their staff’s such as providing

loans with low interest rate, affordable salary to meet daily

transactions as well as management accused to have few number of

staffs.

43

5.4. Recommendations.

The study recommends the following to improve the situation;

Management should emphasis on working with time.

The study discovered that there is challenges that facing

an accountant while preparing bank reconciliation in

Azania bank therefore more emphasis of management that

lead to an accountant to work with time.

Management should increase in number of staffs.

The study found that there is few staffs that responsible

in preparing bank reconciliation that lead an accountant

to face challenge when preparing bank reconciliation.

Management in order to reduce challenge should increase

number of staff.

Improving economical empowerment.

Management of Azania bank should improve economical

condition of their staff in order to have employees who

concentrate much on work during working hour rather than

their mind based on how family economic situation should

44

overcome and have excess jobs that lead inefficient of

work done.

Education should be given to staffs.

The study discovered that challenges hinder the

preparation of bank reconciliation to an accountant

therefore education should be given to staffs in order to

know important of bank reconciliation to the organization

that need to be prepared on time.

Maintain effective communication.

In the organization good communication is a way of improve

efficiency of work and relationship between management and

staffs. Azania bank should maintain effective

communication that lead an accountant to prepare bank

reconciliation report effective and on time.

REFERENCES

Edmonds T.P and Mcnair F.M,(2000)Fundamental Financial Accounting

Concepts,3th edition, McGraw-Hil

Fizzell M.R and Cherry D.C,(2008),Financial Accounting, User

Perspective,5th edition, Veronica Risen tin.

45

Henry R and Needly E,(1990) Principles Of Accounting,4th edition,

Houghton Mifflin Co.

James A and Parry R.W,(2005) College Accounting,18th edition,

Thomson-South Westen.

Jerry J and Kieso D.E,(1999), Accounting Principles,5th edition,

John Wiley and Sons, Inc

Kombo D and Delno L.A Tromph(2006),Proposal Writing ,an Introduction,

Paulines Publications Africa, Nairobi Kenya.

Kothari C.P. (2006),Research Methodology,2ndedition,New Age

International (p)Ltd, New Delhi.

Kothari C.R.(2004) Research Methodologies; Methods and Techniques, New

Delhi, New Age International Limited.

Krishina swami, O.R (2003),Methodology of Research in Social Sciences,

Himalaya Publication House, Mumbai.

Mugenda M.O and Mugenda G,A ,(1999), Research Methods; Qualitative and

Quantitative Approach, Published in Kenya by Act Press.

Penne A and Deines D, (2000) ,Introduction to Accounting,2nd

edition, McGraw- Hill U.S.A

Wild J.J and Chiappetta B,(2005),Principles Of Financial

Accounting,18thedition, McGraw-Hill.

46

APPENDIX I

QUESTIONNAIRE FOR STAFF

This Questionnaire consists of few questions. Put a tick [

] or alphabet for the selected answer (s) in the brackets

and fill in the blanks provided.

1. Is there challenges which facing an accountant when

preparing bank reconciliation?

Yes [ ] No

If Yes, explain why…………………………………………………………

2. What is the extent of challenges that accountants encounter

in preparing bank reconciliation.

a) Strong

b) Weak [ ]

c) Average.

3. Which challenges are mostly in your organization that is

facing an accountant?

a) Educational

b) Economical

[ ]

c) Socially

47

4. How causes challenging an accountant on bank reconciliation

can be avoided?

………………………………………………………………………………

………………………………………………………………………………

………………………………………………………………………………

5. Is the bank reconciliation done properly

a) Strong agree

b) Agree [ ]

c) Disagree.

6. Do you think the accountants use sufficient measures to

overcome the challenges?

a) Strong agree

b) Agree [ ]

c) Disagree

7. How an accountant overcome challenge they face on prepares

bank reconciliation?

…………………………………...............................................

........................

8. What is your opinion on challenges facing an accountant on

bank reconciliation?

………………………………………………………………………………

………………………………………………………………………………

………………………………………………………………………………

………………………………………………………………………………

9. What are challenges encounter accountant during preparation

of bank reconciliation

48

………………………………………………………………………………

………………………………………………………………………………

………………………………………………………………………………

………………………………………………………………………………

………………………………………………………………………………

10. What are causes of that challenge in your Organization?

………………………………………………………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………………………………………………

………………………………………………………...........

11. What are measures should be taken to overcome

challenges that are facing an accountant in your

Organization?

……………………………………………………………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………………..

12. Is management could be a cause of challenge that facing

an accountant when prepares bank reconciliation?

Agree [ ] Disagree [ ]

If Agree, explain……………………………………………………………………………

Thank you.

APPENDIX II

49

INTERVIEW GUIDE

1. What are the challenges facing the accountant in preparing

bank reconciliation?

……………………………………………………………………………………

……………………………………………………………………………………

……………………………………………………………………………………

2. What are the causes of these challenges faced by

accountants?

………………………………………………………………………………

………………………………………………………………………………

………………………………………………………………………………

3. What measures do you take to overcome challenges facing an

accountant during preparation of bank reconciliation?

a. ………………………………………………………………………

b. ………………………………………………………………………

50

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