Research Of Accounting Process Reengineering In The ERP Environment

With the development of domestic economy and economic globalization, China's enterprises are facing increasingly fierce market competition. To remain competitive, enterprises need to continuously improve their management and technical levels. This requires a real-time accounting system capable of reflecting and monitoring business activities timely in order to provide policy-making information for enterprise administrators. Enterprise Resource Planning (ERP) system is an effective tool to accomplish such real-time monitoring by integrating business processes in all departments of an enterprise via IT technologies, and further satisfying the actual needs of each department in a holistic manner. However, the mere application of ERP system is not sufficient to increase business conditions. Enterprises must practically transform their traditional business processes into novel ERP-based ones. Our study focuses on the reengineering of enterprise accounting system under ERP environment. First, we reviewed the academic background, aims and significance of ERP-based accounting process reengineering, as well as the on-going domestic and international study progresses. Second, we analyzed the limitations of the traditional accounting system, warranting accounting process reengineering. Third, we elaborated the basic theory of ERP system, including its definition, characteristics and development. We further justified the feasibility and necessity of this study by illuminating the relationship between ERP and business process reengineering. Finally, we proposed a reengineering project and the concomitant risks, followed by project evaluation in combination with practical examples.