The ERP system impact on the role of accountants

International Journal of Economics and Management, 2016

The advancement of information and communication technologies (ICTs) changes not only people’s lives, but also the way businesses operate. Enterprise resource planning (ERP) is one example how technology transforms business from a labour- to a machine-intensive process and improves organizational control. The purposes of this study are to examine the effectiveness of ERP system implementation on the management control system and identify the changes in accountants’ roles with the implementation of ERP systems. Two companies, one from construction and one in property development activities in Malaysia, were selected, and triangulated data-collection techniques of observation, document analysis, and interviews were employed. This study found that the ERP system is an excellent device for a formal management control system as it helps companies identify wastage at the earliest possible time. In terms of accountants’ role, the ERP improved their work significantly as they can dedicate more time to financial analysis and decision making compared to data entry previously.

Management Systems in Production Engineering, 2012

ERP systems integrate all processes and software users in one computerized environment reshaping organization to fit into system's functionalities. ERP system implementation is a complex process with technical and socio‐organizational issues. As ERP system encompass financial data and management decision modules, accountants are important actors of the system both during implementation and after go‐live stage.

SSRN Electronic Journal, 2000

ERP systems have become the system of choice for the majority of publicly traded companies and have radically changed the way accounting information is processed, prepared, audited, and disseminated. In this study, we examine whether ERP system implementations have affected the extent to which firms manage earnings amounts and release dates. We find, for a sample of ERP adopters, that implementations led to increases in the absolute value of discretionary accruals (i.e., greater earnings management). We also find a positive relationship between the extent of ERP module adoption and the extent of earnings management. With respect to earnings release dates, firms with incentives to increase the timeliness of their release dates experienced a decrease in reporting lag after implementing ERP systems. These results should be of interest to financial statement preparers initially adopting or implementing new versions of ERP applications, auditors serving clients with ERP systems, and regulators overseeing the financial markets and consolidation in the ERP industry.

SSRN Electronic Journal, 2014

This paper seeks to show that the framing of qualitative research affects the responses received from respondents. The same four questions on the impact of IT (and ERP) systems on management accounting were administered to each set of respondents, which differed by the framing of the questions.. Design/methodology/approach: Thirty-nine participants, including chief financial officers, from 20 major New Zealand firms were interviewed as part of a study to understand what IT (and ERP) knowledge and skills employers require of newly hired management accounting graduates. The results of this study were compared to the results of Sanchez-Rodriguez and Spraakman (2012). Findings: The research demonstrates that framing the questions cannot be neglected. The focus on IT (and ERP) knowledge and skills framed the interview questions around management accounting analyses, a major function of newly hired management accountants. The emphasis on IT (and ERP) knowledge and skills turned out to be equal to analysis. Thus, this research provides an analyses perspective in contrast to Sanchez-Rodriguez and Spraakman's (2012) systems perspective. The research also augments our understanding of the impact of ERP systems on management accounting and management accountants. More specifically, ERP provide the capacity to drill-down from financial numbers to non-financial numbers; and by supporting more granular and non-financial explanations, they allow for a more insightful understanding of the drivers of financial numbers. Originality/value: This research provides new insights or contributions to understanding how framing affects or directs respondent assessments of the impact of ERP systems on management accounting.

International Journal of Early Childhood Special Education (INT-JECSE), 2022

A review article or review paper is based on other published articles. It does not report actual research. Review articles that often summarize existing books or articles on the topic in an attempt to explain the current state of understanding of the topic. The purpose of this study is have a careful look on different previously published books and articles on Accounting Information System (AIS) and Enterprise Resource Planning (ERP) and make a summery on it. The objectives of this review paper are to collect useful inform from various published articles and state the criticisms of their research deficiencies .Accounting information plays a crucial role in enterprise resource planning (ERP) enabled environment. For ERP system adopters, the system is responsible for generating the accounting information such as financial statements which are used to measure ERP system implementation success, provide external users with financial information, and determine operational performance. ERP system adoptions may affect firm performance that is described by financial statements, whether these systems affect the decision usefulness of the accounting information or not is unknown (Most. Tahura Pervin, 2019). Here the researcher studied fourteen published articles and found the research gaps of previous articles. Basing on the research gaps the researcher also recommended the possible solutions and outcomes of Applications of Accounting Information System (AIS) under Enterprise Resource Planning (ERP).

icesal.org

Over the past decade, organizations all over the world have adopted Enterprise Resource Planning (ERP) systems. There has been little research at a global scale regarding the accounting benefits of adopting enterprise systems. Moreover, there are almost no studies that examine in detail the relation between accounting benefits and ERP user satisfaction. addressed the need for empirical research on the impact of ERP in terms of accounting advantages and disadvantages. The principal aim of our study was to investigate the accounting benefits that the adoption of an ERP system by companies in Greece may entail in relation to ERR user satisfaction. This study explored the impact that the ERP system has had on accounting information and practice. This study also examined whether differences exist between accountants and IT professionals concerning how each group assesses ERP accounting benefits and ERP user satisfaction. The participants of this study consisted of 175 accountants and 96 IT professionals from 193 companies in Greece. The empirical evidence confirms a number of accounting benefits derived from ERP systems particularly for accounting process. Furthermore, this research identifies factors related to accounting which affect the level of ERP user satisfaction. Implications of these results for practice and research are provided. The findings of this study will be of value to any companies that are considering the inclusion of their accounting techniques and operations in an ERP system. Furthermore, the results of this study will provide stimulus for consequent research in the field in order to further examine and account for the accounting benefits that can occur from an ERP system implementation and their effect on ERP user satisfaction. 361 interaction with ERP user satisfaction level. Another objective of the present study was to examine whether differences exist between accountants and IT professionals concerning how each group measures ERP accounting benefits and user satisfaction. The findings of this study will be of value to any companies that are considering the inclusion of their accounting techniques and operations in an ERP system. Furthermore, the results of this study will provide stimulus for consequent research in the field in order to further examine and account for the accounting benefits that can occur from an ERP system implementation. The remainder of this paper is organized as follows. In Section 2 the previous research and research questions presented. In Section 3, the methodology analysed. Section 4, the analytical results are reported. Finally, the study concludes with a summary, limitations and further research.

Business Process Management …, 2004

The advent of the IT-led era and the increased competition have forced companies to react to the new changes in order to remain competitive. Enterprise resource planning (ERP) systems offer distinct advantages in this new business environment as they lower operating costs, reduce cycle times and (arguably) increase customer satisfaction. This study examines, via an exploratory survey of 26 companies, the underlying reasons why companies choose to convert from conventional information systems (IS) to ERP systems and the changes brought in, particularly in the accounting process. The aim is not only to understand the changes and the benefits involved in adopting ERP systems compared with conventional IS, but also to establish the best way forward in future ERP applications. The empirical evidence confirms a number of changes in the accounting process introduced with the adoption of ERP systems.

Proceedings of the International Scientific Conference - Sinteza 2016, 2016

Contemporary method of doing business requires that managers have at their disposal at all times information about the results achieved both by the company as a whole and by its individual organizational units or its products and services. In the circumstances characterized by globalism and unhindered movement of capital, monitoring business operations would be unthinkable without integrated business solutions. Activities and processes carried out within an organisation are mutually interconnected and interdependent, and therefore must be synchronised in order to maximise available resources and obtain information in a timely fashion. The implementation of integrated business solutions is precisely what facilitates efficient management of companies that are geographically dispersed and that carry on complex and multiple business operations. The objective of this paper is to analyse the roles and functions which enterprise resource planning (ERPs) solutions have within the business organisation and on improving organisation's efficiency and quality in terms of its business operations and decision-making process.

Episteme: an online interdisciplinary, multidisciplinary & multi-cultural journal, 2023

This study aims to evaluate the Accounting Information Systems (AIS) and Enterprise Resource Planning (ERP) in organizations. The objective is to review previous studies on AIS and ERP, identify research gaps, and discuss potential future directions for these systems. The study recognized the significance of information systems in maintaining competitiveness and improving productivity in organizations. This discussion identified several research gaps in the current literature on Accounting Information Systems (AIS) and Enterprise Resource Planning (ERP) and their impact on accounting practices, firm performance, and decision-making processes. The future scopes and directions suggested further investigation in the field of ERP implementation, accounting information systems, and their impact on organizational performance. It highlighted various areas that can be explored, including studying ERP implementation challenges in SMEs and emerging economies, investigating the decision-making usefulness of ERP-generated accounting information, identifying factors influencing ERP implementation success, examining specific accounting practices affected by ERP systems, conducting comparative analyses of different accounting information system approaches and technologies, understanding user perceptions and experiences with ERP systems, analyzing performance outcomes resulting from ERP implem

— Nowadays Enterprise Resource Planning System (ERP) plays a vital role in the business environment. It could be considered as a competitive advantage for firms. On t h e other hand, t h e quality of accounting information is a critical issue for the decision makers. In this study, we investigate whether ERP Systems Implementation has effects on the relevance of accounting information by measuring timeliness, feedback value, and predictive value of accounting information. The analysis shows that ERP System's existence has a positive effect on the relevance of accounting information. This finding has been achieved by distributing questionnaires to the decision makers in 115 firms consisting of 90 ERP system adopters and 35 non-adopters.

TIJ's Research Journal of Social Science & Management - RJSSM, 2011

Information technology is changing almost every phase of global business environment. Auditors are facing the vast challenge of working and keeping up-to-date with such sophisticated technologies. In ERP systems, operational and financial data are tied together through a complex information flow. Transactions can be automatically entered without review or pre-checking with the ERP system. Therefore with the implementation of integrated ERP systems, internal controls are developing itself to support automated operational management. The ERP systems are one of such technologies used by various organizations to achieve a strategic advantage in the competitive market. The ERP systems are computer-based systems designed to process an organization’s transactions. It facilitates integrated and real-time planning, production, and customer response. From an auditing perspective, ERP systems created new opportunities as well as new challenges. Based on a questionnaire survey, the paper attemp...

Journal of Southwest Jiaotong University, 2019

The purpose of this study is to know the impact of accounting and administrative information systems on the performance of institutions. It also aims at finding the relationship between the variables of the accounting information system and the performance variables of the institutions. The study data were collected from 60 employees and faculty members within the College of Computer Science and Information Technology at the University of Basra in Iraq. The project management process was carried out through the PMP program and analysis of the project was conducted through the SPSS program. The study showed the importance of management and planning followed by constraints on efficiency and procedures related to the performance of institutions. The study achieved its objectives and determined the relationship between variables. The use of accounting and management information systems is very important within the organization in the context of technological development in the world.

2012

Technology plays a key role in today's business. Most firms care about and rely on computer and software to provide accurate information for optimum management of their business. The advent of information technology and increased competition has forced firms to respond to new changes towards staying competitive. ERP system is a term used for integrated accounting systems of resources in an organization (Constantinides and Spathis, 2004). According to Stefanou (2002) integration of accounting applications is part of the advantages and disadvantages of enterprise resource planning (ERP) systems. The objective of this research is investigation of ERP acceptance in accounting applications. In fact in this paper the researcher examines why Iranian firms tend to accept ERP systems in order to increase and enhance accounting performance. The population of this research is comprised of 45 people among financial managers and accounting experts in some manufacturing firms. The technique of questionnaire and interview has been utilized in order to gather data. The research method in this study is descriptive-survey. Research results show that acceptance of ERP systems leads to increase in accounting performance and reduction in accounting cycle. That is why firms tend to accept ERP systems in their accounting applications. Noninvestigation of tendency of firms to accept ERP systems has lead to failure of this system in developing countries. This research examines the reasons why firms tend to accept ERP systems.

China Petroleum Processing and Petrochemical Technology, 2023

The study aims to address the gap by exploring how the implementation of ERP systems influences the structure, efficiency, accuracy, and effectiveness of AIS of petroleum companies in Bangladesh. This research holds significance as it sheds light on how ERP systems impact a company's financial operations and overall business performance of petroleum companies in Bangladesh. The objectives of the research include evaluating the costs of ERP implementation for AIS, investigating how integration streamlines financial workflows, and determining how ERP adoption enhances the quality of financial reports generated by AIS of different petroleum companies in Bangladesh. The research study focuses on examining the financial impact of Enterprise Resource Planning (ERP) systems on Accounting Information Systems (AIS) within petroleum companies. To achieve this, a mixedmethods approach is employed, combining qualitative case studies and quantitative analysis. Qualitative methods involve in-depth exploration of 10 selected petroleum companies of Bangladesh through interviews and discussions with key stakeholders, while quantitative methods collect data from 50 ERP and Accounting software users within these companies. The qualitative data is analyzed using thematic analysis to identify recurring themes related to ERP-AIS integration, challenges faced, financial impacts, and process changes. The findings highlighted respondents' perceptions of ERP and accounting software across various dimensions, such as cost-effectiveness, financial data accuracy, timely reporting, internal controls, audit trail, compliance, financial management, budgeting, planning, transaction processing, and tax management. The findings also revealed that a majority of respondents perceive ERP software as cost-effective and leading to cost savings over time. The recommendations include investing in ERP systems for long-term financial benefits, prioritizing ERP's integrated approach for data accuracy and timely reporting, utilizing ERP features for internal controls and compliance, and optimizing AIS for tax management.

ERP system adoption has largely marked the evolution of accounting information systems (AISs). Modern AISs have great potential to influence business performance. The purpose of this study is to examine the influence of the accounting information system in an ERP environment on firm performance. We investigate the direct effects of top management involvement and external expertise on the AIS. We also examine the interaction effect of accounting staff competency with the AIS and test its impact on firm performance improvement. We conduct an empirical study of 102 Tunisian firms adopting ERP systems. We use the partial least square (PLS) approach for hypothesis testing. The results indicate that top management involvement and external expertise have an impact on the AIS. Furthermore, they show that the accounting techniques used after ERP system adoption influence firm performance. The interaction effect of accounting staff competency with the AIS has a positive impact on firm performance improvement.