The Impact of Enterprise Resource Planning Systems on Management Accounting: Some Canadian Evidence and Suggestions for Future Research

Abstract

Enterprise resource planning systems have great potential for changing how companies are administered. In accepting that premise, this paper has two purposes: (1) to demonstrate the capacity of ERP systems to improve capital budgeting by specifying explicitly the intended impacts on revenues, expenses, costs, asset utilization, etc, and (2) to survey Canadian companies about how their use of ERP systems have affected their capital budgeting, management accounting, and control systems. From the 71 surveyed large Canadian companies, 31 responded for a response rate of 43.7 percent. It was found from the respondents that ERP systems are allowing capital budgeting, budgeting, operating statements, forecasting, performance measurement, and costing to be more detailed, more accurate, and quickly reported. However, it is inferred that the adoption of ERP systems is at an early stage and that there are other unidentified factors contributing to management accounting changes.

Keywords: management accounting, enterprise resource planning systems, capital budgeting, information technology

JEL Classification: M40, M46, M47, G31, G34