Impact of ERP Integration and Workflow Automation on General Ledger Accuracy and Reconciliation Efficiency in Public-Sector Finance

Abstract

This study examined the impact of ERP integration and workflow automation on general ledger accuracy and reconciliation efficiency in public-sector finance institutions. The study employed a quantitative, cross-sectional, explanatory research design grounded in systems theory and organizational information processing theory. Data were collected from 286 finance professionals working in accounting, treasury, procurement, payroll, budgeting, and audit departments within ERP-enabled public-sector organizations. Descriptive statistical findings showed that 47.9% of participating institutions operated fully integrated ERP systems, while 44.1% reported high levels of workflow automation. The majority of respondents possessed more than four years of ERP experience, representing 67.2% of the total sample population. Data were analyzed using SPSS through descriptive statistics, reliability analysis, Pearson correlation, and multiple regression analysis. The findings revealed high mean scores for ERP integration (M = 4.18, SD = 0.61), workflow automation (M = 4.11, SD = 0.65), general ledger accuracy (M = 4.26, SD = 0.58), and reconciliation efficiency (M = 4.21, SD = 0.60), indicating strong agreement regarding improvements in accounting performance outcomes. Reliability analysis confirmed excellent internal consistency, with Cronbach’s alpha values ranging from 0.807 to 0.913. Pearson correlation analysis demonstrated statistically significant positive relationships among all study variables, with ERP integration strongly associated with general ledger accuracy (r = 0.781, p < 0.01) and workflow automation strongly associated with reconciliation efficiency (r = 0.809, p < 0.01). Multiple regression analysis further indicated that ERP integration significantly predicted general ledger accuracy (β = 0.521, t = 9.884, p < 0.001), while workflow automation significantly predicted reconciliation efficiency (β = 0.589, t = 11.246, p < 0.001). The regression models explained 64.8% of the variance in general ledger accuracy (R² = 0.648) and 70.1% of the variance in reconciliation efficiency (R² = 0.701). Institutions operating fully integrated ERP systems achieved higher reconciliation efficiency mean scores (M = 4.41) compared with partially integrated institutions (M = 3.88). The study concluded that ERP integration and workflow automation substantially improved transaction synchronization, financial reporting consistency, reconciliation speed, discrepancy resolution, and accounting reliability within public-sector financial management systems.