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International Conference on Enterprise Systems, Accounting and Logistics (8
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ICESAL 2011)
11-12 July 2011, Thassos Island, Greece


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Accounting Benefits and Satisfaction in an ERP
Environment


Alexandra Kanellou
1
and Charalambos Spathis
2

Aristotle University of Thessaloniki, Department of Economics
Division of Business Administration, Thessaloniki, Greece

1
kanellou@econ.auth.gr,
2
hspathis@econ.auth.gr



Abstract

Over the past decade, organizations all over the world have adopted Enterprise Resource
Planning (ERP) systems. There has been little research at a global scale regarding the
accounting benefits of adopting enterprise systems. Moreover, there are almost no studies
that examine in detail the relation between accounting benefits and ERP user satisfaction.
Sutton (2006) addressed the need for empirical research on the impact of ERP in terms of
accounting advantages and disadvantages. The principal aim of our study was to
investigate the accounting benefits that the adoption of an ERP system by companies in
Greece may entail in relation to ERR user satisfaction. This study explored the impact that
the ERP system has had on accounting information and practice. This study also
examined whether differences exist between accountants and IT professionals concerning
how each group assesses ERP accounting benefits and ERP user satisfaction. The
participants of this study consisted of 175 accountants and 96 IT professionals from 193
companies in Greece. The empirical evidence confirms a number of accounting benefits
derived from ERP systems particularly for accounting process. Furthermore, this research
identifies factors related to accounting which affect the level of ERP user satisfaction.
Implications of these results for practice and research are provided. The findings of this
study will be of value to any companies that are considering the inclusion of their
accounting techniques and operations in an ERP system. Furthermore, the results of this
study will provide stimulus for consequent research in the field in order to further examine
and account for the accounting benefits that can occur from an ERP system
implementation and their effect on ERP user satisfaction.

Keywords: ERP, accounting, benefits, accountants, IT professionals, satisfaction, Greece

1. Introduction

A new research topic has been developed concerning the interaction between
Enterprise Resource Planning Systems (ERP) and Accounting. There has been
little research at a global scale regarding the accounting benefits of adopting
ERP, how these benefits are measured by different groups such as managers,
accountants, IT personnel, CIOs, etc and the interaction of such accounting
benefits with ERP user satisfaction. Sutton (2006) addressed the need for
empirical research on the impact of ERPs in terms of accounting advantages.
The principal purpose of our study was to investigate the accounting benefits that
the adoption of an ERP system by companies in Greece may entail and their
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International Conference on Enterprise Systems, Accounting and Logistics (8
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ICESAL 2011)
11-12 July 2011, Thassos Island, Greece


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interaction with ERP user satisfaction level. Another objective of the present study
was to examine whether differences exist between accountants and IT
professionals concerning how each group measures ERP accounting benefits
and user satisfaction.
The findings of this study will be of value to any companies that are considering
the inclusion of their accounting techniques and operations in an ERP system.
Furthermore, the results of this study will provide stimulus for consequent
research in the field in order to further examine and account for the accounting
benefits that can occur from an ERP system implementation.
The remainder of this paper is organized as follows. In Section 2 the previous
research and research questions presented. In Section 3, the methodology
analysed. Section 4, the analytical results are reported. Finally, the study
concludes with a summary, limitations and further research.

2. Previous research

2.1 ERP and accounting benefits
Information technology (IT) has brought about many changes in recent years.
Companies have begun to adopt enterprise resource planning (ERP) systems,
which integrate several business procedures/departments while sharing one
database (Rom and Rohde, 2006). The emergence of enterprise resource
planning systems has signified the beginning of a new era in the business
environment, where companies can integrate business processes/applications
and respond to real-time information (Stefanou, 2002; Nicolaou, 2003; Spathis,
2006). This has resulted in the replacement of a major number of information
systems (IS) by one single ERP system. ERP systems have significantly changed
the way business data is collected, stored, disseminated and used. This change
in information processing orientation affects the accounting process (Sutton,
2006). Nevertheless, the focus of the relevant literature has been on ERP
systems in general and there is limited published scientific evidence on the ERP
implementation processes and their effects on accounting in particular (Granlund
and Malmi, 2002; Sutton, 2006). Nicolaou and Bhattacharya (2008) pointed out
that firms which implement an ERP system must be conscious of and
circumspect enough to realize that ERPs are different from other IT systems.
They bring about global changes to firms business processes and as such their
deployment presents not a finale but the start of post-implementation activities.
Overall, it seems that there is a positive relationship between ERP
implementation and operational efficiencies (Matolscy et al., 2005; Nicolaou and
Bhattacharya, 2008).
According to recent studies, the implementation of ERP systems affects the
accounting processes and the accountants role (Granlund and Malmi, 2002;
Scapens and Jazayeri, 2003). Booth et al. (2000) examined to which extent the
application of an ERP system can lead to the adoption of new accounting
practices by an enterprise. It was found that ERP systems constitute sources of
data for new accounting practices and are able to support these practices. More
specifically, Rom and Rohde (2006) found that ERP systems seem to be of
assistance in terms of the collection of data and the organizational breadth of
management accounting. This was further confirmed by Javernpaa (2007), who
noted that such systems lead to the adoption of new management accounting
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International Conference on Enterprise Systems, Accounting and Logistics (8
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ICESAL 2011)
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practices and accountants are able to carry out routine activities more effectively,
to handle large databases more quickly and to report in a faster and more flexible
way. The findings of another study (Hyvnen et al., 2008) which presented the
development of a management accounting control system, suggested that IT
accounting solutions in general force accountants to not only study the logic of the
solution, but also to invent ways of combining accounting and management
rationalities. Newman and Westrup (2005) also, using empirical evidence,
demonstrated that even though the relationship of accountants and technologies
such as ERPs has become increasingly intertwined, accountants continue to use
their position to reshape and advance their professional expertise. As a
conclusion, we are in the position to argue that ERP systems have impact on the
accounting processes and on the accountants role.
Spathis and Constantinides (2004) examined the reasons behind enterprises
decision to replace the traditionally information systems (IS) with completed ERP
systems and explored the changes that occur in terms of accountant applications
due to the adoption of these systems. The results illustrated that the three most
important motives that led to ERP adoption were: increased demand for real-time
information, information generation for decision-making and need for integration
of applications. The most important benefits for accounting due to ERP
implementation were: increased flexibility in information generation, increased
integration of accounting applications, improved quality of reports statement of
accounts, improved decisions based on timely and reliable accounting information
and reduction of time for closure of annual accounts.
Research that has focused on the benefits derived from ERP adoption has shown
that the implementation of these systems is usually followed by improvements of
the decision-making process and enterprise integration (Colmenares, 2009).
Kelton et al. (2010) noted that information presentation format effects are
pervasive and affect the decision making process in various contexts. In the
literature there are also additional studies which indicate that ERP systems
improve the decision making process in an organization (Spathis, 2006; Spathis
and Kanellou, 2007). Other benefits derived from ERP implementation are: more
accurate reports - statements of accounts and improved service of accounts in
accounting tasks (Velcu, 2007; Colmenares, 2009). Furthermore, Brazel and
Dang (2008) pointed out that ERP implementation appears to reduce reporting
lags.
OLeary (2004) tried to analyse and measure ERP system benefits and whether
or not they vary across different industries. The benefits list that he used and the
classification of benefits in tangible and intangible that he adopted were
developed by Deloitte Consulting (1998) study. OLeary (2004) added some
additional benefits on the list. Some benefits under investigation were: inventory
reduction, financial close cycle reduction, personnel reduction, management
improvements, IT cost reduction, on-time delivery, information/visibility,
integration, flexibility, better decisions, financial controls, new reports - reporting
capability.
In a study by Shang and Seddon (2002), a comprehensive framework for
assessing the benefits derived from ERP systems is proposed. This framework
tries to classify ERP benefits into five dimensions: operational, managerial,
strategic, IT infrastructure and organizational. Esteves (2009) based on this
classification in order to develop a benefits realization road-map for ERP usage in
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International Conference on Enterprise Systems, Accounting and Logistics (8
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ICESAL 2011)
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the context of small and medium-sized enterprises (SMEs). His analysis suggests
that ERP benefits realization dimensions are interconnected and that managers
should perceive this realization as a continuum cycle along the ERP post
implementation period. Some of the benefits that were examined by Esteves
(2009) were: cycle time reduction, cost reduction, quality improvement, improved
decision making, support organizational changes, increase IT infrastructure
capability and business flexibility.
Spathis (2006) adopted also Shang and Seddons (2002) benefits classification in
order to classify and examine accounting benefits derived from ERP adoption.
Spathis (2006) classified ES benefits into organizational benefits, operational
benefits, managerial benefits and IT benefits. In his analysis he hypothesized that
perceived accounting benefits could be explained by the following independent
variables: the number of reasons for ES implementation, the number of ES
modules, ES cost as a percentage of sales and the companys total asset.
According to this survey the most important accounting benefits that occur for a
company due to the inclusion of the accounting department in the ERP system
are: increased flexibility in information generation, increased integration of
applications, improved quality of reports statements of accounts, improved
decisions based on timely and reliable accounting information and reduction of
time for closure of annual accounts. These results are consistent with these of
Spathis and Ananiadis (2005) and Kanellou and Spathis (2007) studies.
Nicolaou (2004) also tried to measure financial performance after the
implementation of an ERP system using a set of eight different financial
indicators, such as ROA (Return on Assets), ROI (Return on Investment), ROS
(Return on Sales) and OIS (Operating Income over Sales). He also measured
four ERP implementation indicators and one of them was the type of module
implemented. He classified modules into two categories: primary modules and
support modules. The results of his study indicated that the type of modules
implemented had an effect on financial performance after ERP implementation.
Although ERP benefits have been examined in the past, their direct impact on the
accounting process has not yet been explicitly examined.
We can conclude from the relevant literature that enterprise resource planning
systems implementation has an impact on the accounting department of the
enterprise. More specifically, ERP systems seem to increase flexibility, integrate
accounting applications and processes and improve gathering and processing of
data. Nevertheless, there is a need for empirical research on the impact of ERP in
terms of accounting advantages (Sutton, 2006).
As a theoretical foundation for our research, we adopted Shang and Seddons
(2002) benefits classification and we compiled an accounting benefits list based
on the ERP benefits lists adopted or developed by Deloitte Consulting (1998),
OLeary (2004), Spathis (2006) and Esteves (2009). Thus, the present study
examines particularly the accounting benefits that the implementation of an ERP
system may entail. More specifically the first research question of our study in
relation to ERP system and accounting benefits is as follows:
RQ1: What are the accounting benefits derived from the adoption of ERP
systems and which are the main factors in which these benefits could be
categorized?


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International Conference on Enterprise Systems, Accounting and Logistics (8
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ICESAL 2011)
11-12 July 2011, Thassos Island, Greece


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2.2 Differences in perspectives related to ERP performance
We will now take a look at research studies which tried to examine differences in
perspectives related to ERP performance between different groups of users.
Chang (2006) compared IS integration in high-tech organizations from the IT and
general management perspectives. All the organizations that participated in the
study had implemented an ERP system. The results showed that IT and general
management perceptions of IS implementation were very similar. Furthermore,
ITs overall important assessments of business functions were more strongly
correlated with their overall level of implementation and they tended to rate
system benefits and system reliability more highly.
Sayed (2006) focused on the mechanisms and dynamics of expertise constitution
where it is understood as an accomplishment or achievement. He tried to study
the interrelation of accountants and ICTs in a modern technology environment.
He found that there is no dilution of expertise in relation to ICTs. Rather, some
accountants are promoting themselves as a group of relevant experts in deriving
benefits from these systems. The results of this study indicate that accountants
see ERPs as a chance for them to expand their skills and knowledge. The
objective of another study was to determine whether differences exist in
perceptions related to ERP performance between two organizational stakeholder
groups: business managers and IT professionals. The results indicated that no
significant statistical differences exist between the two groups with the exception
of one dimension: ERP success, i.e. vendor/consultant quality (Ifinedo and Nahar,
2007). Esteves (2009) also, tried to examine the differences in the perceptions of
ERP benefits - related to the point of ERP post-implementation time - between
business managers and MBA students with work experience in SMEs. The results
showed that the difference between the two data samples was not very significant
in any ERP benefits dimension.
On the other hand, there are previous studies which tried to measure ERP
satisfaction level among users from different departments and found some
statistically significant differences. Holsapple et al. (2006) tried to determine ERP
success, in terms of user characteristics, ERP fitness factors and user
satisfaction. This study indicated that ERP user satisfaction among management
users was greater than among non-management users. Longinidis and
Gotzamani (2009) also, found that users from network department are less
satisfied with ERP than are users from other departments (sales and supportive).
In their study they stated that ERP users from different departments use different
functional modules and interact with different interfaces of the main ERP system.
Although previous studies have examined differences in perceptions concerning
benefits and user satisfaction, there are no academic studies that assess any
differences in the perceptions between accountants and ITs particularly in terms
of accounting benefits and ERP satisfaction level related to ERP performance.
Thus, our study which investigates the accounting benefits and user satisfaction
associated with the ERP application by the accounting department of an
enterprise, is based on empirically researched evidence. To this end, the second
research question that the present study tries to investigate is as follows:
RQ2: Are there any differences in the responses between accountants and IT
professionals concerning how each group estimates ERP accounting benefits and
ERP user satisfaction?

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International Conference on Enterprise Systems, Accounting and Logistics (8
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ICESAL 2011)
11-12 July 2011, Thassos Island, Greece


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2.3 ERP and user satisfaction
In the literature there are studies which tried to assess user satisfaction related to
ERP performance and operation. Somers et al. (2003) argue that the realization
of benefits from ERP systems depends on supporting effective use of information
technology and the satisfaction of IT users. They note that user satisfaction with
information systems is one of the most important determinants of the success of
those systems. Wu and Wang (2007) agree that user satisfaction is an evaluation
mechanism for determining system success and thus their study looked at key-
user satisfaction as a means of determining system success. Their study took
place in Taiwan and 205 questionnaires were completed by key-users of ERP
systems in a large number of companies. The results indicated that there is a
relationship between key-user satisfaction and perceived system success. Their
research identified that users satisfaction evaluation for ERP system is
multidimensional and is related to ERP product, contractor service and
knowledge and involvement. Longinidis and Gotzamani (2009) also, identified
three factors which seem to affect satisfaction of ERP users: Interaction with the
IT department, pre-implementation processes and ERP product and adaptability.
Calisir and Calisir (2004) claim that while much money has been spent on the
implementation of ERP systems, previous research has demonstrated that
potential users may not use them. They conducted a survey, which aimed at
examining various usability factors affecting end-user satisfaction with ERP
systems. Data were gathered from 51 end-users in 24 companies. The results
showed that perceived usefulness as well as learnability are determinants of end-
user satisfaction with ERP systems. Additionally, perceived ease of use and
system capability affect perceived usefulness, while users guidance influences
both perceived usefulness and learnability.
Koh et al. (2006) investigated ERP adoption by Greek companies and explored
the effects of uncertainty on the performance of these systems through six case
studies. They found that there were major differences between ERP adoption in
Greek companies and companies in other countries. In Greece, the internal
enterprises culture, resources available, skills of employees and the way ERP
systems were perceived, treated and integrated within the enterprise and in the
supply chain play a critical role in determining the success / failure of the adoption
of ERP systems. Saatcioglu (2009) tried to identify the effects of benefits, barriers
and risks on user satisfaction in ERP projects. He found that the five most
important benefits which determine user satisfaction are better management and
controlling functions, financial flow controls, information flow controls,
increased IT infrastructure capability and control of flow of goods.
Floropoulos et al. (2010) also, conducted a survey in Greece, concerning the
success of TAXIS (The Greek taxation information system) from the perspective
of expert employees, who work in public taxation agencies. The model developed
included the constructs of information, system and service quality perceived
usefulness and user satisfaction. The findings indicated that information and
service quality are significant determinants of employees satisfaction.
There are almost no academic studies which examine ERP user satisfaction
particularly in relation to accounting benefits derived from ERP systems.
Furthermore, there are almost no studies which examine ERP user satisfaction in
relation to the modules that companies operate in an ERP environment and in
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relation to the ERP cost. In order for ERP systems to be effectively used in the
business environment, a better understanding of accounting benefits and user
satisfaction need to be developed. As mentioned above, Spathis (2006) used the
number of modules implemented and ERP cost as independent variables in order
to measure accounting benefits.
In the present study we use the accounting benefits, the number of modules
implemented and ERP cost (as percentage of annual sales) as independent
variables in order to measure ERP user satisfaction. We have already pointed out
that Nicolaou (2004) classified the modules and used them as ERP
implementation indicators to measure financial performance. However, this
modules classification was not feasible in our dataset, because 90% of the
companies that participated in our study had implemented both module
categories and thus, direct comparisons could not be done. Based on the
previous review of the literature, this study was conducted to answer the following
specific research question:
RQ3: Is there a relation between ERP user satisfaction and accounting benefits,
number of modules implemented and ERP cost?

3. Methodology

A quantitative approach was adopted in terms of the collection and analysis of the
data. Using a probability sample design, systematic sampling was applied and a
sample of 420 companies in Greece was drawn that had adopted an ERP
system. After liaising with the employees in charge of accounting and ERP
systems in those companies, the final sample was reduced to 193 companies
(those that agreed to take part in the study). The participants were 175
accountants and 96 IT professionals. All the companies that participated in the
survey implemented an enterprise system at least one year ago. The data were
gathered with the questionnaire method. The questionnaire forms were returned
to us by fax or e-mail and some were completed in person. Responses range
from not at all (1) to perfect (7) on a 7-point Likert type scale. Previous studies
have indicated satisfactory reliability for these variables (Spathis and
Constantinides, 2004; Spathis, 2006). The tests such as -Cronbach and factor
analysis have been taken to ensure the reliability and validity of the scale
obtained. We used t-test to measure any statistically significant differences in the
responses between accountants and IT professionals and we also used
regression analysis to identify relationships between satisfaction and independent
variables.



Table 1. Demographic characteristics
Frequency % ean
. Respondents
Position in the firm
Accounting 175 64.6
(ERP) 96 35.4
Total 271 100.0
Gender
Male 196 72.3
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Female 75 27.7
Total 271 100.0
Age and experience
Age (years) 40.1
Years at current position 8.4
Total work experience (years) 15.6
. Companies
Type of industry
Manufacture 82 42.5
Services Research & Development 54 28.0
Commerce 57 29.5
Total 193 100.0
Type of company
S.A. 155 80.3
Other 38 19.7
Total 193 100.0
Company size
Number of employees 686.2
C. RP
Type of ERP
Not Greek ERP software (SAP,
NAVISION, JD EDWARDS, etc.)
54 29.7
Greek ERP software (ATLANTIS
(ALTEC), ENTERSOFT BUSINESS
SUITE, etc.)
136 70.3
Total 193 100.0

The empirical evidence presented in this study was solely obtained via the
questionnaire that was answered by employees from companies that had adopted
the ERP system for at least 1 year in Greece. As can be seen in Table 1,
accountants constituted 64.6% of the sample, while ITs constituted 35.4% of the
sample. The mean age of the respondents was 40.1 years and the respondents
mean total work experience was 15.6 years. The mean years at current position
was 8.4 years. According to the type of industry, 42.5% of the companies were
from the manufacturing sector, 28% were from the service sector and 29.5% were
from the commerce sector 80.3% of the companies were S.A.s, as far as type of
company is concerned and the mean number of employees was 686.2. Moving
on to the type of ERP, it was decided to divide the ERP software packages into
two main categories: Local-greek ERP software packages (such as ALTEC
ATLANTIS ERP, ENTERSOFT BUSINESS SUITE ERP, etc.) and International
ERP software packages (such as SAP ERP, NAVISION ERP (MICROSOFT), JD
EDWARDS ERP, etc.). 70.3% of the companies that participated in the study had
adopted a local ERP system. It seems that companies which operate in Greece,
tend to adopt local software packages. Further information on demographic
characteristics is provided in Table 1.

4. Results

Prior to the presentation of the research findings, we would like to refer to the
modules that the companies operate in the ERP environment (see Appendix A).
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International Conference on Enterprise Systems, Accounting and Logistics (8
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ICESAL 2011)
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Almost all companies that participated in the study operated the financial
accounting module. Additionally, the majority of the companies operated stock-
purchases, a fixed asset register, costing, sales-marketing and management
accounting modules. The operation of such modules demonstrates that the
companies that operate an ERP have a primary concern to integrate their
accounting processes into that system. This is due to their expectation that ERP
will have a positive impact on their accounting processes. Paradoxically, the
payroll module, which forms an integral part of the accounting system, is only
operated by 57.5 percent of the companies that participated in the study.
The survey findings are divided into three main sections and each section
corresponds to a specific research question. The first section explores the
accounting benefits derived from the ERP system implementation. The second
section provides information about the opinions of both accountants and IT
personnel and discusses whether or not there are statistically significant
differences concerning how each group measures accounting benefits and ERP
user satisfaction. In the last section we try to examine ERP user satisfaction in
relation to accounting benefits, modules implemented and ERP cost.
Empirical evidence showed that the respondents have quoted a number of
benefits in accounting practice derived from ERP systems. The variables related
to accounting benefits of ERP systems were factor analyzed using principal
component analysis (PCA) with varimax rotation as a commonly used technique
for summarizing a set of variables into independent subsets. The results are
presented in Table 2.
PCA highlighted five dimensions (named after Shang and Seddons (2002) and
Spathis (2006) classification) involving:
1. IT accounting benefits: ERP gathers data more quickly and easier, ERP
produces results more quickly and easier.
2. Operational accounting benefits (time): reduction of time for closure of
monthly, quarterly and annual accounts and reduction of time for issuing
financial statements.
3. Organizational accounting benefits: increased flexibility in information
generation and integration of accounting applications, improved decision-
making, improved internal audit and improved quality of reports statements
of account.
4. Managerial accounting benefits: improved working capital control, increased
use of financial ratio analysis and reduction of time for issuing payroll.
5. Operational accounting benefits (cost): reduction of personnel of the
accounting department.
These factors clearly reflect the main accounting benefits that follow ERP
implementation and their impact on accounting processes. The factors explain
66.338% of the variance and the Kaiser-Meyer-Olkin (KMO) measure of sampling
adequacy is high suggesting that factor analysis is appropriate for this data set.
Bartletts test of sphericity is large and the associate significance level is small
(zero), therefore it is unlikely that the population matrix is an identity. Furthermore,
the factors have high alpha values (between 0.933 and 0.726) confirming their
high reliability. PCA results further confirm that the adoption of ERP systems has
successfully fulfilled its purpose demonstrating a significant impact on accounting
information and practice, in terms of accounting benefits.


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Table 2. Validity and reliability analysis of ERP system accounting benefits

Factor
loadings
% of
variance
Cronbachs
alpha
Factor 1: IT accounting benefits 18.369 0.895
It gathers data more quickly 0.811
It produces results easier 0.799
It processes results more quickly 0.763
It gathers data easier 0.762
It is more flexible in general 0.664
Factor 2: Operational accounting benefits
(time)
17.032 0.933
Reduction f time for closure of monthly accounts 0.880
Reduction of time for closure of quarterly accounts 0.856
Reduction of time for closure of annual accounts 0.792
Reduction of time for issuing of financial
statements
0.703
Factor 3: Organizational accounting benefits 14.184 0.809
Increased flexibility in information generation 0.769
Increased integration of accounting applications 0.666
Improved decisions based on timely and reliable
information
0.562
Improved quality of reports statements of
account
0.550
Improved internal audit function 0.548
Factor 4: Managerial accounting benefits 10.356 0.726
Improved working capital control 0.783
Increased used of financial ratio analysis 0.740
Reduction of time for issuing payroll 0.506
Factor 5: Operational accounting benefits
(cost)
6.396 _
Reduction of personnel of accounting department 0.902
Total variance explained (%) 66.338
KMO 0.869
Bartletts test of sphericity
Approx. Chi-square 1928.590
Df 210
Significance 0.000

The next section presents results about the perceptions of accountants and IT
professionals concerning accounting benefits and ERP user satisfaction level.
Details are displayed in Table 3. Respondents have quoted a number of benefits
and advantages in accounting information and practice derived from ERP
systems. The most highly-rated perceived benefits achieved following ERP
implementation involve: IT accounting benefits, organizational accounting benefits
and operational accounting benefits (time). Each of the above perceived benefits
was given a mean score between 5 = high degree and 6 = very high degree by
the respondents. Such findings prove that the inclusion of accounting processes
in the ERP system lead to the emergence of various accounting benefits that
receive high scores. Managerial accounting benefits also received a high score
mean = 4.649 = high degree.
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On the other hand, the variable operational accounting benefits (cost) is the
benefit that received the lowest rating (mean = 2.39 = very low degree). It seems
that ERP adoption in the accounting department does not have an important
effect on personnel reduction. This finding is also consistent with the results of
OLeary (2004), who found that only 12% of the companies which participated in
his study and had implemented an ERP system, had also seen a reduction of
personnel due to this implementation.
There are no statistically significant differences concerning the measurement of
the accounting benefits between accountants and IT professionals. It seems that
the respondents of our study (both accountants and ITs) viewed ERP as
beneficial for the accounting processes in their organizations. However, it seems
that there is a statistically significant difference concerning ERP user satisfaction
in the way that accountants and ITs estimate this variable (t = -2.046, p < 0.042).
Even though accountants and IT professionals rated ERP user satisfaction highly,
the results show that there is a statistically significant difference in their
perceptions concerning this variable. Overall, accountants seem to be more
satisfied with ERP performance compared to IT professionals.
The perceived accounting benefits that we examined, suggest that ERP systems
have an important impact on accounting information and practice compared to
traditionally used systems. Moreover, it is obvious that ERP adoption as far as the
accounting department is concerned leads to flexibility and integration of business
applications in general and accounting applications in particular.
The evidence shows that ERP systems have a positive impact on accounting
process. Furthermore, these systems affect positively the whole enterprise; that is
because increased flexibility in information generation, improved internal audit
function, improved decisions based on timely and reliable information and
increased integration of applications do not only have a positive effect on
accounting practice but also on the business operation in general.

Table 3. Benefits and satisfaction of ERP system in relation to group of users

Variables
Acc IT
Mean
Std.
dev.
Mean Std. dev.
IT accounting benefits 5.632 0.975 5.642 1.209
Operational accounting benefits (time) 5.11 1.246 4.907 1.222
Organizational accounting benefits 5.353 0.979 5.356 1.051
Managerial accounting benefits 4.666 1.451 4.620 1.387
Operational accounting benefits (cost) 2.480 1.652 2.220 1.499
ERP user satisfaction** 5.350 1.103 5.050 1.182

Scale: 1= not at all, 2= very low degree, 3= low degree, 4= average, 5= high degree, 6=
very high degree, 7= perfect
** Significant at the 0.05 level (two-tailed)

The last research question concerns satisfaction of ERP adoption and its relation
to accounting benefits, number of modules implemented and ERP cost. As
shown in Table 4, the mean of the perceived ERP user satisfaction is 5.240. The
average number of modules implemented is almost seven out of eleven and the
average cost of ERP is 2.432% of annual sales. The mean of perceived IT
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accounting benefits is 5.640, the mean of perceived operational accounting
benefits (time) is 5.052, the mean of perceived organizational accounting benefits
is 5.354, the mean of perceived managerial accounting benefits is 4.649 and the
mean of perceived operational accounting benefits (cost) is 2.390.
Statistically significant correlations exist between the dependent variable ERP
user satisfaction and the independent variables IT accounting benefits,
operational accounting benefits (time), organizational accounting benefits,
managerial accounting benefits and ERP cost. These findings further confirm
the strong link between these variables within this context. However, perceived
operational accounting benefits (cost) and modules are not correlated with
ERP user satisfaction.

Table 4. Means and Correlations

Variables Mean
ERP
user
satisfact
ion
IT
account
ing
benefits
Operati
onal
account
ing
benefits
Organiz
ational
account
ing
benefits
(time)
Manage
rial
account
ing
benefits
Operati
onal
account
ing
benefits
(cost)
Modules ERP cost
ERP user
satisfaction
5.240 1.000
IT accounting
benefits
5.640 0.593
**
1.000
Operational
accounting
benefits (time)
5.052 0.464
**
0.506
**
1.000
Organizational
accounting
benefits
5.354 0.481
**
0.635
**
0.552
**
1.000
Managerial
accounting
benefits
4.649 0.373
**
0.488
**
0.524
**
0.596
**
1.000
Operational
accounting
benefits (cost)
2.390 0.048 0.045 0.184
**
0.174
**
0.207
**
1.000
Modules
6.660 0.028 0.066 0.077 0.054 0.108 0.048 1.000
ERP cost
2.432% 0.246
**
0.111 -0.045 0.116 0.086 0.115 -0.081 1.000

**Correlation is significant at the 0.01 level (2-tailed)

Notes: Modules = Number of modules implemented; ERP cost = ERP acquisition and installation
cost as a percentage of annual sales

The results of OLS regression are presented in Table 5. The univariate tests
provide valuable information regarding a large number of variables over a sample.
This study used the multivariate regression model with seven variables for the
dependent dimension of ERP user satisfaction. The model is significant (F =
11.303; p < 0.000) for ERP user satisfaction. The adjusted R square explains up
to 33.1 percent for ERP user satisfaction, while R square explains up to 36.3
percent for ERP user satisfaction. The independent variables with significant and
positive coefficients on ERP user satisfaction are IT accounting benefits,
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operational accounting benefits (time) and ERP cost. Operational accounting
benefits (cost) and modules have a negative contribution to ERP user
satisfaction. In general, the results indicate that accounting benefits and ERP cost
are important and significant parameters that affect ERP user satisfaction level.

Table 5. Coefficient estimates of ERP user satisfaction

Independent variables Coefficient t-values Significance
Constant 1.672 3.143 0.002
IT accounting benefits 0.311 3.141 0.002
Operational accounting benefits (time) 0.153 1.872 0.063
Organizational accounting benefits 0.154 1.409 0.161
Managerial accounting benefits 0.075 1.033 0.303
Operational accounting benefits (cost) -0.083 -1.576 0.117
Modules -0.005 -0.126 0.900
ERP cost 0.027 2.838 0.005
Model R
2
0.363
Adjusted R
2
0.331
F-value 11.303 0.000


5. Conclusions

The aim of the present study was to investigate the accounting benefits derived
from ERP application in the accounting department and whether differences
between accountants and IT professionals exist concerning the measurement of
accounting benefits and ERP user satisfaction. Moreover, this study tried to
evaluate the effect of accounting benefits, number of modules implemented and
ERP cost on ERP user satisfaction. Companies that operate in Greece and have
adopted an ERP system provided the data presented here. This study explored
the impact that the ERP system has had on accounting information and practice.
The studies conducted by Spathis and Constantinides (2004), Spathis (2006) and
Kanellou and Spathis (2007) explored the accounting benefits of adopting
enterprise systems in Greece and our study can be seen as an extension of those
studies, as it also explored ERP user satisfaction and its relation to accounting
benefits. Thus, our study is currently one of the first complete sets of data
available on Enterprise Resource Planning Systems in Greece in relation not only
to benefits but also to ERP user satisfaction.
The present study highlighted five dimensions of accounting benefits: IT
accounting benefits, operational accounting benefits (time), organizational
accounting benefits, managerial accounting benefits and operational accounting
benefits (cost). The results we obtained regarding the benefits that result from
using the ERP system are in line with those of Spathis and Constantinides (2004),
Spathis (2006), Kanellou and Spathis (2007) and Esteves (2009). Furthermore,
the findings regarding the gathering and processing of data through the ERP
system agree with the findings of Granlund and Malmi (2002). Such results
confirm the fact that data are gathered and processed easier and more quickly
with the assistance of the ERP system. Thus, ERP systems seem to provide an
enterprise, and more specifically the accounting department, with a greater
degree of flexibility. Velcu (2007) examined the effects of ERP systems on
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organizational performance and found that companies who had implemented an
ERP perceived improved service time in accounting tasks. These findings agree
with the results of the present study, which show that the reduction of time for
closure of accounts and the time for issuing payroll is significant after an ERP
implementation. Brazel and Dang (2008) also, found that ERP implementation
seems to reduce reporting lags. Our results also confirm the results of a case
study (Colmenares, 2009) which showed that ERP implementation is followed by
improvements of decision-making process, enterprise integration and accurate
financial statements. At this point it is important to note that the only benefit that
received a very low rating was the reduction of personnel of the accounting
department. This result agrees with the results of another study (OLeary, 2004)
which showed that only 12% of the companies which had implemented an ERP
system had a reduction of personnel as well. Even though many benefits occur in
the accounting department after an ERP implementation, it seems that these
benefits are not always followed by a reduction of personnel which would lead to
significant cost benefits for the enterprise.
No significant statistical differences exist between the perceptions of accountants
and IT professionals concerning ERP accounting benefits. The fact that for all
variables there were no significant statistical differences in perceptions between
the two groups is in line with the findings of Chang (2006) and Ifinedo and Nahar
(2007).
As far as satisfaction with ERP performance is concerned, there is a significant
statistical difference between accountants and ITs. Accountants seem to be
satisfied at a higher degree with ERP performance than ITs are. This finding
further confirms the results of Longinidis and Gotzamani (2009) who found that
users from the IT department are less satisfied with ERP than are users from
other departments.
Moreover, our research indicates that IT accounting benefits, operational
accounting benefits (time), organizational accounting benefits, managerial
accounting benefits and ERP cost are related with ERP user satisfaction.
Saatcioglu (2009) also found a relation between benefits and ERP satisfaction.
However, our study referred particularly to accounting benefits. On the other
hand, the number of modules implemented and operational accounting benefits
(cost) do not seem to have a significant effect on ERP user satisfaction.
Overall, we found that the benefits that result from the application of an ERP in
the accounting department are great in number and most of these are rated very
highly. Thus, we are in the position to argue that it is worthwhile for an enterprise
to include accounting in its ERP system. Finally, we point out that ERP user
satisfaction level is related positive with accounting benefits and ERP cost.

5.1 Limitations
Some limitations exist. These are as follows: not all possible accounting benefits,
advantages and disadvantages have been examined in this study. Also only
companies located in Greece have participated in the present empirical research.
Furthermore, the number of the accountants that participated in the study was
larger than that of the IT professionals.



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5.2 Further research
It is important to note that further research is needed in terms of the accounting
benefits that the adoption of an ERP system may entail and their interaction with
ERP user satisfaction. There is even a greater need for research in terms of
investigating the corresponding accounting problems or disadvantages that may
emerge from the adoption of an ERP system. Studies that investigate the positive
aspects of ERP system implementation and those that investigate the negative
ones contribute to a better understanding of the factors related to ERP user
satisfaction and accounting benefits.

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Appendix A. Operating modules in ERP environment

Modules Percent
Financial accounting 95.9%
Stock-purchases 88.6%
Fixed asset register 80.3%
Costing 74.1%
Sales-marketing 72.5%
Management accounting 65.3%
Payroll 57.5%
Production 53.9%
Logistics 40.9%
Quality management 19.2%
E-commerce 13.5%