The Impact of Information Technology on Management Accounting Practices

38 Pages Posted: 3 Jan 2011

Date Written: December 31, 2010


The purpose of this research was to study the impact of enterprise resource planning (ERP) systems at large, profitable Canadian firms. Of the respondents, only 56.8% said their firms had ERP systems. Only 12% of those firms were deemed by respondents to have fully integrated ERP systems. There was general support for the hypotheses. Management accounting techniques such as budgetary control, cost control, profit analysis, sales analysis and variance analysis use ERP systems. Those same management accounting techniques plus budgeting have been required to change due to ERP systems. The work of management accountants has changed: less involvement in data entry activities, more involvement in design of business processes, and the need to be more IT savvy. ERP systems have contributed to the work of management accountants: more effective, more efficient, better decisions, more responsive to accounting problems, more accuracy of forecasts, and better understanding of cost behaviour.

Keywords: management accounting, information technology, ERP systems

JEL Classification: M41

Suggested Citation

Spraakman, Gary, The Impact of Information Technology on Management Accounting Practices (December 31, 2010). Available at SSRN: or

Gary Spraakman (Contact Author)

York University ( email )

Room 282 Atkinson Building
York University
Toronto, Ontario M3J 1P3
416 736 2100,22155 (Phone)
416 736 5963 (Fax)

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