By Using the Accounting Business Process Reengineering Achieve the Fusion of the Financial Report Goals

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1 By Using the Accounting Business Process Reengineering Achieve the Fusion of the Financial Report Goals WU Ping Henan Mechanical and Electrical Engineering College, Zhengzhou, Henan, P.R.China Abstract: In our country, the new criteria presented financial reporting goal that has entrusted with the responsibility view and decision-usefulness view, it embody the characteristics of fusion of two views. But, to achieve the two views real fusion, there are some obstacles. This paper puts forward, enterprise may by this method that using ERP system undertake accountant business process reengineering, through the event-driven, the system automatically collect and current affairs report etc, to change accounting information processing, collection and output ways. Ultimate aims, we can improve the quality of accounting information, overcome obstacles appearing in the target fusion, eventually,entrusted with the responsibility view and decision-usefulness view are both be reflected, the two financial report goals are fused. Keywords: Accounting BPR, Financial Report, Goals, Fusion, ERP 1 Instruction Financial accounting purpose is providing useful information for internal and external accounting information users, and helps them to make relevant decisions. Enterprise financial report undertake carrier of information, it is the ultimate result of the accounting recognition and measurement. Therefore, financial report target is very important. IT is the core and soul of the financial accounting system. ERP system is not only new software, but it represents advanced modern enterprise management concepts and management mode. The data of the traditional accounting business process is classified data. In the modern society of the economic globalization and the computer network technology, the accounting information that is provided by traditional accounting process has become more and more difficultly to meet the needs of enterprise management and decision-making. It is not able to realize the new financial report goals. Therefore, we research to realize the financial report goals by accounting BPR in ERP system, which not only has the theoretical significance, but also has a very important practical significance. 2 The views of financial reporting goal Summed up, Enterprise financial report goal has two big views that entrusted with the responsibility view and decision-usefulness view ". In the west, entrusted with the responsibility view has been generated for many years. In the commodity economy society early, enterprise organization form has appeared, but capital market has not formed, capital owner investment options are limited. In this case, the resources fiduciary accept entrustment and manage the delivered resources. Therefore, the fiduciary is responsible for management, to make the commissioned resources as far as possible appreciative. Meanwhile, the fiduciary must assume the duty that report accurately performance process and result(mainly based on financial reports as the means).accordingly, entrusted with the responsibility view puts forward that the principal aim of financial report is provide entrusted with the responsibility performance and results of information for entrusting party. Decision-usefulness view is the product in development of market economy, is a kind of innovation in Financial accounting concept framework (SFACNO. 1) of USA the financial accounting standards board (FASB, 1978). Along with market economy more and more mature, the position of stock market is more and more important. Meanwhile, the company's equity is increasingly diffused, most investors are not interest in the management.they hope to benefit from its accounting information to make 1153

2 investment decisions, to make their investment behavior is more effective. Decision-usefulness view think, financial report goal is provide useful information of the decision for accounting information user, namely accounting shall present and potential for the investors and lenders and other users of the information provided to facilitate its investment and credit policy and other decision information. Decision-usefulness view think that the objective of financial reporting is provide useful accounting information for users. In other words, the accounting should be provide the widely information for the current and potential investors, creditors and other information users. 3 The financial report goal in China Ctually, the two views are not mutually exclusive. The two financial reporting goals can be fused. The international accounting standards board and British ASB are both think that the financial report shall be provide useful information for uses and reflect the execution of accountability for the authorities. In February 2006, China's ministry of finance promulgated new the accounting standards for enterprises - basic standards of specified: "The objective of financial reports is provide the information about enterprise financial position, operating results and cash flows and other relevant accounting information for the users of financial reports, reflect the execution of accountability for the authorities, and help the users of financial reports to make economic decisions." The financial reporting goals that were proposed by the new guidelines achieved convergence with the international accounting standards. At the same time, it balanced entrusted with the responsibility view and decision-usefulness view. It is accepted by more users. But, there are some obstacles in practical work to achieve the fusion of accounting report goals. 4 Existing barriers 4.1 Select the information are different According to the point of entrusted with the responsibility view, the users generally require information providers to provide the information on the fulfillment of fiduciary duty. The business activity is a process with cash flow, logistics and information flow, but due to the traditional accounting system structure, the accountants only collect the data that affect financial statements. They only collect the date of cash flow. During the business activities, the date of logistics and information flow generally will not be considered by accountants. Entrusted with the responsibility view, set out from the standpoint of the information users, request for the useful information on the investment strategy. In today's global business environment, the investment strategy of large-scale accounting information user has been diversified and personalized. Administrator, investors and related interest groups hope can get the latest information on enterprise through online at any time, so as to make the right business decision-making, reduce risk. On the side, investors both value accounting information also value the non-financial information. Investors both value operating results also value enterprise background and forward-looking information. They hope that information is timeliness, forecasting value and feedback value, but also pay close attention to the future cash flow and enterprise other relevant information. To compare accounting information quantity and accuracy: the former thinks accounting information should be precise and reliable, the latter emphasizes accounting information should be more and permit a deviation. To compare accounting information quality: the former emphasizes reliability, the latter emphasize relativity. To compare accounting information measurement and pattern choice: the former advocated single historical cost measurement and the historical cost model, the latter claims multiple account measurement model, for example the present value of the future cash flow, net realizable value, fair value etc. By comparing, we can see all the quality of accounting information hard to meet all the requirements in different target, they inevitably has the stress. To realize the fusion of financial report goals, we need to coordinate the acquisition modes of accounting information. 4.2 The impact of the traditional accounting business process 1154

3 The traditional accounting business process is based on the concept of accounting target entrusted with the responsibility to be made. It is a sequence of based on the theory of labor division. The business process of account strictly accord to "fill the vouchers -- registration books-- prepare financial statements ". The traditional financial accounting business process has the following characteristics: first, the accounting information system is an open loop system and the accounting information is generated from accounting raw data in the accounting information system.the date is unidirectional. Second, the accounting information user gets accounting information that is processed with high comprehensive. Third, in accounting business processes, the mistake of any link could affect the entire accounting information processing. Fourth, the kind of information only embodies the accounting information of each business capital flows, the content of accounting information is single. Fifth, the traditional accounting business process plays a role, but it reduces the timeliness of accounting report. The system of computerized accounting information has replaced manual operation, but the account process automation is only manual accounting work without reservation. Most computerization software is one accounting system that is decomposed into relatively independent modules, under every module, it is subdivided again. The accounting data is lag and scattered. The traditional accounting processes can not change the traditional accounting information system structure, and not eliminate its shortcomings. Obviously, today, the traditional accounting simply report to perform responsibility, it can't meet the needs of various users.to realize fusion of the financial report goals, the traditional accounting business process must conform to the trend of the times, is rebuild in ERP system. 5 Use Accounting BPR to achieve the fusion of financial report goals 5.1 Accounting BPR in ERP system Accounting business process reengineering can be achieved in a systematic transformation method in ERP environment.accounting business process reengineering which is driven by the decision model is to greatly improve the relevance, timeliness and cost-efficiency of accounting information according to the shortages and lacks in the traditional way. It works for accounting business processing, on a basis of decision model, network database and computer techniques, aiming at reporting standard source data and meeting information demands of the user s. 5.2 The change of accounting information after Accounting BPR The collection accounting information will be more comprehensive and efficient The accounting department is unattached with the other management departments in traditional accounting business process, so does the information system.that results in repeated input of the data by accounting or other department when economic business occurs, what is worse, most of the information manual-collected by accounting personnel in a traditional way is usually used for afterwards controls, for it is incomplete or not-just-in-time. The accounting business process reengineering in ERP system fully takes the advantages of information technology collecting information automatically in a systematic way to make up the not-just-in-time service of the information, repeated records of data and low access to sharing in the traditional way. The main principle is to establish it on a foundation of the enterprise s LAN, linking accounting information system with other subsidiary management systems of the enterprise by network technology.the raw data will be input in a certain code entry by business apartment and stored in the globally shard database when a business event happens. Accounting apartment can draw the raw data from the globally shared database directly and process it further.using network techniques to realize the collection of accounting information can not only reduce the labor intensity of accounting personnel but also dramatically improve the quantity and coverage and efficiency of accounting data gathering,which ensures the length and depth of financial overlook, thus accounting department will achieve real-time monitoring business and raw documents to ensure the consistence The information will be more accurate and relevant after process reengineering Traditional accounting business process based on data entry of accounting vouchers aims at afterwards reflection instead of supporting advance budget, course control and subsequent evaluation through 1155

4 information technology, which is far form the demand of the enterprise. Therefore, the traditional accounting business process is in a great demand to be replaced by information processing process based on Even Driven, the raw data will be collected by management subsystems, transferred by enterprise network in a certain code entry and stored in business events database immediately when events happen. The raw data in business events database needs to be further processed and feedback to the user by a corresponding information processing procedure which can be started by a certain processing code when the user wants to draw some information form the system. Not all accounting vouchers will be made out by accounting personnel after process reengineering.when it comes to a business event, the information input by the relevant personnel according to each module of ERP system will be stored in a business events database. When the enterprise conducts business, the multiple event-driven programs will be real-time triggered the business event information will be transmitted to the financial module by conducting business rules and information processing regulations,and real-time integrated information will be generated. The accounting vouchers will be produced in the general ledger module automatically to ensure the synchronous generation of logistics, cash flow, and information flow. Obviously, event-driven accounting information can better meet the demands of information of user s and create a bigger value for enterprise The output of accounting information will be timelier, flexible and diversified after process reengineering. The fundamental shortage of the traditional accounting business process is that cash flow reflected by financial report lags logistics information and accounting is in a lack of timeliness and that financial information and non-financial information fails to separate from each other. The read-time information in ERP system is a development and innovation of the traditional accounting. The accounting business process after reengineering in ERP system can be extended to every business apartment from financial apartment through network technology to pay attention to business happened in each department, and information will be classified and stored according to different features for preparation. That will help accounting personnel to get and process information in time and correctly through accounting real-time process system, realizing the dynamic and real-time processing. That design can also realize the disclosure diversification by well-roundly reflecting historical information and real-time information and forecasting further information. It will replace the original regularly report mode by real-time report mode and provide person related with quicker and wider accounting information according to real-time control. 5.3 Accounting information after Accounting BPR will contribute to the fusion of financial report goals The change of accounting information after process reengineering will contributes more to unit and fuse of the kinds of financial reported goals. Firstly, the accounting business process reengineering has settled the problem that periodicity can not meet the demand of making decisions in time.it has improved the situation that cash flow lags material information and has ensured that the records of cash flow and logistics are consistent with the data.the replacement of static accounting business process by the dynamic one realize the real-time monitoring, real-time decisions and synchronous management of related apartments. Secondly, the business process reengineering has increased the accounting business ability of the enterprise. It has greatly improved the quality of information, successfully reduces the fault resource and ensured the coverage and accuracy of the accounting data. At the same time, it has ensured the sharing and exchange of the data. All kinds of data and information can be got from the database and it can help the user to have an eye on the dynamic market, to catch the opportunity and to mark correct decisions. Thirdly, the accounting information after BPR affords remote reimbursement, remote statements, remote audits, online payment, online tax, online purchasing and online sales etc. It can dramatically enhance the ability of accounting data process and improve the value of accounting information by generating dynamic accounting reports which reflect the enterprise operation and the condition of finance in the first time. Meanwhile the accounting information has been extended in width and depth; the network can 1156

5 provide the user with information about analysis processing of accounting and non-accounting data, such as settings of an enterprise, information about management personnel and stockholders etc. Therefore, accounting information will be more compressive and rich. 6 Conclusion Anyway, the accounting business process reengineering in ERP system plays fully advantage of information technology makes up the shortages the tradition way according to the limitations and disagreements on accounting information of different views in traditional business processes. Thus fundamentally changes the traditional mode of accounting reports. It can not only provide the client with the condition or result of the conduction of the responsibility, but also offer present or potential investors, creditors or other users information which is helpful for their decisions. The information will be more practical, relevant, timely and interactive through accounting business process reengineering in ERP system, thus resulting in a transformation of new financial report goals and the fusion of the financial report goals that entrusted with the responsibility view and decision-usefulness view. References [1]. Ziaul Huq; Faizul Huq; Ken Cutright BPR through ERP: Avoiding change management pitfalls Journal Of Change Management[J] :63-65 [2]. The ministry of finance accounting company group. Enterprise accounting standards explained [M]. People's publishing house.2006:26-35(in Chinese) [3]. Roger Debreceny; Glen L Gray. The Production and Use of Semantically Rich Accounting Reports on the Internet: XML and XBRL International Journal of Accounting Information Systems [J].2009(2):