The Relationship between the Implementation of ERP Systems and the Financial and Non-Financial Reporting of Organizations

Laura-Eugenia-Lavinia Barna,Bogdan-Ștefan Ionescu,Liliana Ionescu-Feleagă

doi:10.3390/su132111566

Laura-Eugenia-Lavinia Barna, Bogdan-Ștefan Ionescu + Show 1 more

Open Access

https://doi.org/10.3390/su132111566

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Journal: Sustainability	Publication Date: Oct 20, 2021
Citations: 6	License type: CC BY 4.0

Affiliation: Bucharest University of Economic Studies

Abstract

Numerous studies have shown that ERP systems can improve organizational performance and efficiency. Thus, the main concepts addressed in the paper are ERP systems, their performance and the manner in which they improve financial and non-financial reporting. The purpose of this paper is to observe the relationship between ERP systems and financial reporting. The role of these systems is to ensure transparency over the financial and non-financial reporting process of an organization. The research method is represented by an archival analysis (organization’s annual reports) to highlight the relationship between ERP systems and financial and non-financial reporting, given the impact of ERP systems on the information used to prepare financial and non-financial reports and how the organization changes after implementing these systems. The results highlight the significant role of ERP systems within an organization, in terms of performance and improvements in financial and non-financial reporting.

Highlights

Any organization tries to find ways to report reliable information, in order to “obtain financial benefits” [1]
Data processed using ERP systems are stored in a common database, which facilitates the flow of information [4] between the departments of any organization
The purpose of this paper is to observe the relationship between ERP systems and financial and non-financial reporting processes, and to determine their impact on the quality of information used in this process and the ways in which the organization changes after implementing these systems

Summary

Introduction

Any organization tries to find ways to report reliable information, in order to “obtain financial benefits” [1]. ERP systems are organized modularly, containing such basic modules as procurement, sales, finance, accounting, human resources and other modules specific to each organization, depending on the specifics of the activity. These integrated systems are able to manage most activities within an organization. ERP systems focus on information quality, strategy, control, decision making, performance and reporting [6], in order to provide real-time operational or financial information, creating strong relationships and efficient communication between departments [7]. ERP systems offer a superior quality of accounting information, helping managers to make the most efficient decisions regarding the organization

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