Saturday, August 10, 2019

Evidence to Critically Discuss the Potential Consequences of Essay

Evidence to Critically Discuss the Potential Consequences of Implementing ERP Systems - Essay Example into a single information system5, ensure that financial data is consistent with other departments on a real-time basis6, improve resource planning, enhance the integration of global and supply chain system, and requires less computer applications7. Most of the routine accounting tasks will no longer be necessary8. Therefore, it is expected that there will be lesser cost on hiring accounting staff. Furthermore, the use of ERP can help reduce the risk of data redundancy. Therefore, problems related to financial integrity is possible. Due to the fact that real-time financial data will be available anytime of the day, managers can easily make important business decisions9. Despite the advantages of implementing ERPs, the use of this technology can be very costly because of the need to maintain and upgrade the system, hire additional consultants and technical experts who can convert existing data and customize the system based on the nature of business10. Aside from the need to re-train people on how to maximize the use of ERP system, the company also need to consider the need to change their normal business process. 11. Implementing the use of ERP could result to lesser accounting personnel by eliminating routine jobs12. Because of fear of losing their job security, implementing ERP increases the risk of creating resistance-to-change among its people13. As a result, there is a risk wherein internal problem such as work-related attitude and behaviour would arise. How the Role of Management Accountants Change when ERPs were Introduced Ever since the ERP has been introduced in the market, the role of management accountants has been subject to a lot of changes. Instead of focusing on pure book-keeping practices, management accountants who are obliged to use the ERP system are expected to play the role of an â€Å"internal consultant† to the business14. It means that management accountants should one way or the other serve as the financial adviser of the company. Through the use of ERP system, the future book-keeping would definitely become automated in terms of data collection15. Even though management accountants are expected to retain their knowledge in book-keeping, the future role of management accountants is not limited to having a vast knowledge and understanding about the basic business management theories and practices but also strive hard to improve their communication skills, interpersonal skills, consulting skills, IT skills, and ability to work in team16. Associated with the implementation of ERP system, the line managers are somehow expected to play a significant role in the management of allocated financial budget17. To ensure that the management accountants will be able to allocate sufficient budget to line managers, the management accountants should be able to forecast necessary budget based on historical data18. One of the main reasons why management accountants should acquire sufficient knowledge and skills in business management is because of their need to constantly communicate and interact with a group of business managers with regards to several bu siness issues19. By doing so, management accountants will be able to gain better understanding on how different business indicators can be used in gauging the overall business performance. In the process of learning more about how the daily business operations work, management accoun

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