and foremost, the implementation contract to implement ERP systems in both LCSB
and KLD was awarded to the IFCA Software Solutions in October 2007 where two
external information technology (IT) consultants from the software system developer
were assigned to the companies once the decision to procure the software system
was made. The implementation project began in November 2007 with a recommended
implementation period of 12 months and the aim to “go live” with the systems in
January 2009.


team for LCSB and another team for KLD both were worked together with the
project team, who were also split into two teams. Generally, the individuals
most knowledgeable in IT systems and business flows of the companies were
selected for the team. However, due to unforeseen issues, the were delays in
the implementation project because the “go-live” scheduling planning did not go
as smoothly as planned.

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4.0     IMPACT


findings are the results of research done by some of the students from Universiti
Teknologi Mara (UiTM) Shah Alam and Perak. Based on the study, the interviews
were conducted with the group of financial controller, the accountants at both
companies, and an IT executive.




is a fantastic tool for management control system in LCSB. ERP system had added
transparency and was easy to control all the business units and activities. The
variance report in the companies’ ERP system assists in monitoring the
budgeting and planning to ensure that costs have not overrun. If the cost has
neared the budgeted cost, managers will be alerted and quick action will be
taken to overcome the problems.


such as accountants are monitoring of materials on site. If the materials on
site, such as ready-mixed cement and steel bar, are running low at the
construction site, the purchasing department will be alerted and a new order
will be made to ensure that the work on site will not come to a halt. 


implementation of an ERP system positively changes a company’s operations and
procedures, including the nature of the job and role played by accountants. In
the accounting literature, the impact of ERP system on the work of an
accountant has been recognized as one of the most important factors shaping the
demand for the accountants’ expertise, knowledge, skills, and responsibilities
in the future. ERP makes computerized knowledge and skills, like an accounting
information system (AIS), more important, which are significantly emphasized by
accounting programmers and courses in colleges and universities that offer
accounting programs.




found that companies’ charts of accounts were expanded due to ERP, which
allowed the performance measurement to become more extensive, standardized, and
thorough as well. In addition, non-financial measures comprehensively revamped
with financial and nonfinancial information were equally important and
integrated with each other in a company’s transactions.


when it comes to changes to accounting techniques and activities, Newman and
Westrup’s (2005) findings were similar to those of previous studies. Other than
the expanded chart of accounts, the accounting techniques were not
significantly influenced by the ERP system implementation (as cited by Nazatul,
Anuar, & Ahmad, 2016). In response to the change of activities, Nazatul,
Anuar, and Ahmad (2016) also cited that Sánchez-Rodríguez and Spraakman (2012)
found that management accountants participated less in recording and processing
the transactions. Their job became more about analyzing because more accurate
and timely information from the ERP system provided the opportunity for more
reliable, precise, and valuable decision making.


certainly have improved their work in terms of spending significantly less time
on data collection and more time on data analysis based on the interviews with
the respondents (accountants). As KLD’s accountant explained, 


“There is now more time to analyse
the information from our system. Before, it could have taken us weeks to
prepare a financial report, but with the new system now in place, the
information is available straight away and it allows us to complete our closing
quickly. We can now spend better time on higher level activities, such as
variance analysis and receivables collection trends”.


accountant described that she spent more time analyzing the information rather
than just getting the final figures as an example. When asked about the changes
in accounting techniques, the accountants from both companies agreed that the
techniques did not change, but more detailed and accurate data could be obtained
faster because the preparations of financial statements are bound by the
standards set by the professional body, the Malaysian Accounting Standards
Board (MASB).



construction and property developer companies are categorized as specialized
industries so they have to adhere to more detailed and specific accounting
standards. Therefore, the accounting technique does not have any impact upon
the implementation of ERP systems, which has made it easier for non-accountants
to conduct non-relevant accounting roles.


accountants’ perceptions of the ERP system implementation from both companies
agreed that, although ERP does not change their responsibilities such as to
provide the month end figures, it does ease the burden of preparing such data.
LCSB’s accountant claimed that they hardly had to stay back during the
month-end closing because data can be obtained quicker than before. This is
occurring because with the ERP system all accounting functions, such as general
ledgers, account payables, account receivables, fixed assets, and cash
management, are fully integrated. 


updates and adjustments can be done at any time because the perfectly
integrated ERP system connects all functions together. Thus, real-time
information is available for the accountants for effective and efficient
decision making. In addition, more streamlined processes and workflows and the
smooth interface among various departments enhance the accounting trail. Thus,
it is much easier for accountants to perform audits and verifications of the
integrity of the financial figures and, ultimately, prepare financial


terms of an ERP system hit on an accountant’s work, it certainly has improved
such work particularly in terms of time as accountants spend significantly less
time on data entry after implementation but more time on data analysis. So,
they can concentrate on analyzing the important financial and non-financial
figures and be more involved in the managerial decision-making process. The ERP
system may change accountants’ roles but the accounting techniques do not
change. The quality of data obtained from the system certainly improves as more
detailed and accurate data can be obtained faster without changing the
techniques because of the preparations of financial accounts are bound to the
standards set by professional accounting bodies. Nevertheless, the
implementation of an ERP system has certainly improved accountants’ roles while
increasing their market value in the industry due to the expertise they acquired.