Erp System Analysis

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CHAPTER 1 INTRODUCTION 1.1 Background and Motivation Over the past decade, organizations all over the world have adopted Enterprise Resource Planning (ERP) systems (Alexandra and Charalambos, 2011). ERP systems are widely spread and implementing in global corporate to integrate diverse and complex corporation operation (Severin et al, 2011). ERP systems are using for the need of timely access to consistent information through the varied functional areas of a company. An ERP system can characterize as an information system made up of different components which each allocating the business procedures. The components are integrated and all gathered data are stored in a main central database (Aernoudts, Boom, Pijl, & Vosselman, 2005).…show more content…
ERPs are organization-wide and integrated information systems that enable organizations to manage and coordinate all their information, resources and functions from shared databases (Gullkvist B.M., 2012). The major benefits for accounting due to integrated system implementation are increase flexibility in information generation, increase integration of accounting presentations, improve value of reports, improve decisions making based on timely and reliable accounting information and reduction of time for disclosure of annual accounts (Alexandra and Charalambos,…show more content…
Although some research did focus on the changes of the accounting practices but it is clear that there is still a lot of research to be done. This study is significant because the goal of the study is to determine the impacts of the ERP systems on the changes of the accounting system and the accountant’s roles. Besides that, there is limited research on the ERP systems in Malaysia compared to other western countries. This study conducts in Malaysia and identifies the accounting benefits of ERP system that can enhance the performance of the Malaysian company. This can encourages companies to implement ERP system through the success case of ERP system. Malaysian government also plays an important role to provide financial assistance for SMEs to implement and support the ERP systems implementations. The contribution of this study is toward motivating the ERP systems among Malaysian companies. This study also can serves as an extension of knowledge to get to the impact of ERP system on accounting practices. As there is little research conducted in Malaysia, it is hope that this study helps providing the helpful information for future
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