Inventory Management and Accounting System of Hospitals in Anambra State

Abstract

This study examined the effect inventory management on accounting system of hospital in Anambra State, Nigeria. The specific objectives were to evaluate the effect of re-order level, periodic review system on accounting. A cross-sectional survey design was adopted, which allowed the collection of data from health institutions in five local governments in Anambra State. The study population comprised 371 health institutions across five local governments in Anambra State Nigeria. With a sample size of 192 determined using the Taro Yamane formula. Data were collected through structured electronic questionnaires, capturing respondents’ perceptions of inventory management effects on accounting system. Hypotheses were tested using multiple regression analysis. The findings revealed that reorder level system, periodic review system measures all significantly enhanced the reliability of accounting system in Nigeria. In conclusion, the study establishes that inventory management practices—specifically the re-order level system and periodic review system—play a critical role in enhancing the effectiveness of accounting systems. These practices ensure accurate stock records, strengthen internal control mechanisms, and provide reliable data for financial reporting and decision-making. The study recommended that the management of health institutions should develop and implement a clearly defined re-order level system for all categories of inventory. This should include specific threshold quantities that trigger replenishment activities. Inventory management policies should be reviewed regularly to ensure alignment with operational needs, industry standards, and technological developments. Continuous assessment allows organizations to adjust stock levels based on demand fluctuations and cost considerations, ensuring that the accounting system remains resilient.