Is It Necessary To Implement ERP In Mechanical Electrical Contractor Companies?

Abstract

This study investigates the challenges and solutions in managing cash expenditure reporting within Mechanical and Electrical contractor construction services companies, focusing on the role of Accounting Information Systems (AIS). Through a qualitative case study approach, data was collected via interviews, observations, and documentation from company employees, and analyzed using Kaoru Ishikawa’s Fishbone Diagram to identify root causes of inefficiencies. Key issues identified include delays in data submission, inconsistencies in financial records, reliance on manual processes, over-dependence on individual staff, and lack of integrated technological systems. These challenges compromise the accuracy, accountability, and timeliness of financial reporting, raising risks of errors and potential fraud. The analysis highlights the absence of standardized procedures, specialized accounting personnel, and automated tools as critical barriers to effective AIS implementation. Proposed solutions include redesigning business processes, developing detailed flowcharts for reporting procedures, integrating centralized databases, enhancing staff competencies through training, and deploying web-based applications to automate data entry and reporting. The study emphasizes the potential of Enterprise Resource Planning (ERP) systems to streamline financial processes, reduce manual errors, and improve transparency. By addressing these gaps, the research underscores the importance of robust AIS frameworks in enhancing decision-making, cost control, and project management efficiency in construction firms. These findings contribute to broader discussions on optimizing AIS in resource-intensive industries, advocating for strategic investments in technology and human capital to align financial practices with organizational objectives.