Abstract:
Institutions globally have embraced electronic systems of managing documents and generation of
financial statements ranging from maintenance of ledgers, extraction of the trail balance and
automated income statement and statement of financial position. This study sought to analyze the
effect of e-financial documentation and statements on operating costs in universities in Kenya. The
study was guided by theory of reasoned action and technology acceptance model. The target
population was 80 employees drawn from 8 universities, four public universities and four private
universities operating in Mount Kenya region. Census was used to collect the data from target
population. A self-administered semi-structured questionnaire was distributed to the target
population. A total of 71 questionnaires were returned giving a response rate of 88.75%. Statistical
package was used to undertake descriptive and inferential statistical analysis. Descriptive analysis
was done using both means and standard deviations. Bivariate linear regressions were used to assess
the effect of e-financial documentation and statements on operating costs. Model R2, ANOVA
Statistics (F Statistic and associated p-value) and regression coefficients (Beta and associated p-value)
were generated and interpreted. The Bivariate results indicated that online financial documentation
have a significant effect on the operating cost of universities. Electronic financial statements had an
insignificant effect on operating costs of universities. This study concludes that online financial
documentation affects organization costs in the universities. The study recommends the need to
sensitize management of universities and other organizations on the importance of electronic
financial services because they could reduce operating costs.
