International Journal of Scientific and Research Publications, Volume 7, Issue 10, October 2017 464 ISSN 2250-3153 www.ijsrp.org Efficacy of Accounting Systems on the Performance of Public Universities in Kenya: A Case of Egerton University Joyce Cherotich Malait * , Dr. Isaac K. Naibei ** , and Dr. Joseph K. Kirui *** *Lecturer, University of Kabianga **Lecturer, University of Kabianga, ***Lecturer, University of Kabianga Abstract- Accounting systems is a system that records and process data of transaction and events into meaningful information for use in planning, controlling and operation of business. The purpose of this study was to establish the effect of accounting systems on performance of Public Universities in Kenya. The study adopted descriptive research design using a case of one public University in Kenya. The study targeted all the 106 staff working in the Administration and Finance division of Egerton University. Simple random sampling technique was used to select 83 respondents out of which 79 respondents participated in the study. Data was collected using self-administered questionnaire. Quantitative data collected were analyzed using descriptive statistics . Simple regression model was also used to analyse the results. The study established that there was statistically significant relationship between Accounting systems and the performance of university. The study recommends that the management of university should consider and improve on their Accounting systems to enhance accuracy of accounting reports, customer satisfaction, management accountability and transparency, since they significantly affected their performance. The study also recommended that the same study be carried out in Finance and Microfinance institutions, private and other public sectors to find out if the same results would be obtained. Index Terms- accounting systems, public universities, Kenya I. INTRODUCTION ccounting is an essential part of any business, large or small owners, profit making or not for profit making organizations. Accounting plays a very important role in the management and success or failure of contemporary business institutions. Manual and computerised accounting systems perform basically the same processes, the accounting principles and concepts are the same with differences lying in the technicalities of the process. Although accounting system is expensive, its advantages lie on speed and being able to store information. Accounting systems are responsible for recording, analyzing, monitoring and evaluating the financial condition of companies, processing of documents necessary for tax purposes and providing information support to many other organizational functions, Amidu et al., (2011). The revolution in information technology has significantly changed the nature of business and created competitive advantages for those who appreciate its effects Porter et al.,(1985). The advent of IT has affected the form and substance of information, accounting not excepted. With proper systems, new and updated financial information could be readily available for purposes of, among others, making decisions. Moreover, the accounting systems need also be able to capture the non-financial information to support the financial information for better decision-making Brecht et al., (1996). Thus, the accounting systems should be able to produce relevant, accurate, reliable, and timely information to users in the information age. It shows that successful implementation of accounting systems will benefit improvement in work qualities, improved flexibility, motivation of using software application, increased productivity and performance. Accounting Systems allows a company to manage its business with potential benefits of improved process flow, reduced inventories, better data analysis, better customer service and improved profit margins Fang et al.,(2006). According to Romney et al., (2000), an accounting system is a system that processes data and transactions to provide users with information they need to plan, control and operate their business. In this definition, accounting information systems are considered as tools that help management in planning and controlling processes by providing the relevant and reliable information for decision making. From this perspective, accounting system functions are not solely for purpose of producing financial reports rather the role goes beyond this traditional view and can also be used as a controlling mechanism such budgeting. Full adoptions of the system will essentially require attainment of all the benefits of the system. Gelinas et al.,(2005), asserts that Accounting System is a system which combines accounting principles and concepts as well as the concept of information system to record, process, analyse and produce financial information to its users for making economic decisions. Performance measurement is the process whereby an organization establishes the parameters within which programs, investments, and acquisitions are reaching the desired results Graham et al., (1998). Controlling performance is also critical in measuring the organizational performance. Controlling ensures that the organization know how well they are progressing along the route, how correct their map is, and what deviations, if any they need to make to stay on course. Managers are usually judged on their performance in one of the three principal Ways, in terms of business outcomes turnover, profits, return on investment, in cases where they are directors or senior managers; in terms of their agreed departmental/unit A