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The study focuses on the impact of computerized accounting system on financial reporting in the Ministry of Local Government (MINALOC) in Rwanda by evaluating : the nature of computerized accounting system used by the Ministry, how computerization of accounting has affected the generation of financial reports, and the extent to which computerized accounting contributes to financial reporting in the MINALOC. The study will help the management of the Ministry to understand the importance of using accounting software packages in preparing quality and reliable financial reports. End users of computerized accounting system will also benefit from quick financial transactions and services facilitated by the use of accounting software packages available in the Ministry. A survey questionnaire was administered on a sample of 65 respondents randomly selected from a population of 110. From the findings, 98% of the respondents admit that the Ministry uses both cash based and accrual based system of computerized accounting, 38% of the respondents agreed that computerized accounting improves accountability, while 31% of the respondents maintain that the system provides financial statements on time. With increased improvements and versions of accounting packages, the study recommends that finance and accounting staff should have constant and continuous training by the authorized dealers of the packages so that they remain well equipped with the knowledge and experience of the package. There is also need for more internal audit reviews to appraise and check the strength of the instituted controls within the accounting system in the Ministry of Local government of Rwanda.
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