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The Effect of Integrated ERP-Based Financial Systems on Regulatory Compliance and Reporting Accuracy in Public and Private Sector Organizations: An Empirical Study
Subject area: Management and Commerce · Area of research: ERP Financial Systems & Compliance
DOI: https://doi.org/10.64388/IREV7I7-1717250
Abstract
Integrated Enterprise Resource Planning (ERP)-based financial systems are indeed a major driver of organizational financial management in the 21st century because they not only unify business processes but also pave the way for seamless data integration and decision-making effectiveness in both public and private sectors. Through this research, the authors explore the influence of ERP-based financial systems on the level of regulatory compliance and accuracy of financial reporting by means of a structured questionnaire directed at finance professionals accountants auditors, and system users of selected organizations. The research implements a quantitative method to study how ERP systems aid in compliance with financial regulations as well as in upgrading the dependability and accuracy of financial reporting results. The results of this research indicate that financial compliance levels have been substantially elevated by ERP systems through the standardization of financial processes, tightening of internal controls, and assurance of compliance with accounting standards and legal requirements. Besides, the study concludes that the integration of ERP also results in better accuracy in reporting through error reduction, getting the data up to date instantly, and making financial operations more transparent. While highlighting the benefits, the paper also points to some issues such as the large expense of implementation, complexity of the system, unwillingness to organizational change, and lack of technical knowledge. The research found that ERP-driven financial systems are indispensable for enhancing financial governance and reporting quality in public and private sector entities. The paper also gives the future steps to help the effective implementation, optimization, and long-term use of the ERP systems in the financial management scenario.
Keywords
ERP-Based, Financial Systems, Regulatory Compliance, Public and Private Sector
References
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How to cite this paper
@article{1717250,
author = {Justin Tobechukwu Kanife},
title = {The Effect of Integrated ERP-Based Financial Systems on Regulatory Compliance and Reporting Accuracy in Public and Private Sector Organizations: An Empirical Study},
journal = {Iconic Research And Engineering Journals},
year = {2024},
volume = {7},
number = {7},
pages = {825-833},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/1717250.pdf},
abstract = {Integrated Enterprise Resource Planning (ERP)-based financial systems are indeed a major driver of organizational financial management in the 21st century because they not only unify business processes but also pave the way for seamless data integration and decision-making effectiveness in both public and private sectors. Through this research, the authors explore the influence of ERP-based financial systems on the level of regulatory compliance and accuracy of financial reporting by means of a structured questionnaire directed at finance professionals accountants auditors, and system users of selected organizations. The research implements a quantitative method to study how ERP systems aid in compliance with financial regulations as well as in upgrading the dependability and accuracy of financial reporting results. The results of this research indicate that financial compliance levels have been substantially elevated by ERP systems through the standardization of financial processes, tightening of internal controls, and assurance of compliance with accounting standards and legal requirements. Besides, the study concludes that the integration of ERP also results in better accuracy in reporting through error reduction, getting the data up to date instantly, and making financial operations more transparent. While highlighting the benefits, the paper also points to some issues such as the large expense of implementation, complexity of the system, unwillingness to organizational change, and lack of technical knowledge. The research found that ERP-driven financial systems are indispensable for enhancing financial governance and reporting quality in public and private sector entities. The paper also gives the future steps to help the effective implementation, optimization, and long-term use of the ERP systems in the financial management scenario.},
keywords = {ERP-Based, Financial Systems, Regulatory Compliance, Public and Private Sector},
month = {January},
doi = {https://doi.org/10.64388/IREV7I7-1717250}
}