ERP System and Financial Statement Accuracy: Evidence from Selected Firms in Nigeria

Abstract

The accuracy of financial statements is a critical concern for businesses, investors, and regulatory bodies, particularly in developing economies like Nigeria. This study explores the impact of Enterprise Resource Planning (ERP) systems on financial statement accuracy, focusing on selected firms in Nigeria. Drawing exclusively on secondary data from academic journals, industry reports, and case studies, the study highlights how ERP systems enhance data integration, reduce reporting errors, and improve compliance with accounting standards. Data obtained from literature and financial reports were analyzed using qualitative content analysis and descriptive statistical methods. Findings from previous studies reveal that ERP adoption leads to more timely and reliable financial reporting, especially among large firms in manufacturing and telecommunications sectors. However, challenges such as high implementation costs, limited technical expertise, and user resistance can hinder these benefits. The study concludes that while ERP systems significantly improve financial reporting accuracy, their effectiveness depends on strategic implementation, staff training, and continuous system evaluation. Recommendations are made for broader ERP adoption and policy support for digital transformation in Nigerian firms.