Moderate Impact of Erps on Management Accounting: A Log or Permanent Outcome?

Abstract

The currently most advanced administrative corporate IT solutions have emerged in the form of Enterprise Resource Planning Systems (ERPS). The number of adopters of this new integrated information technology is increasing rapidly. Still, we know very little about the practical consequences these new systems have for managerial accounting and control, and thereby corporate management. The purpose of this study is to explore the effects of integrated, enterprise-wide information systems on management accounting and management accountants' work. Data for the analysis were gathered through a field study of ten companies (e.g., ABB and Nokia) that have experience of integrated information systems in Finland. Our findings indicate that so far, the ERPS projects have led to relatively small changes in management accounting and control procedures. Also, in most of the cases, advanced management accounting techniques - and many of the traditional ones too (e.g., annual budgeting) - are operated in separate systems. For management accountants, ERP-systems have in some cases left more time for analysis instead of routine tasks. The reasons for these findings are discussed and ideas for further research are presented.

JEL Classification: M40, M46