Intro In this day and age, it is almost unthinkable to perform accounting functions without the help of information technology (IT). Accounting dates back to 3600 BC when the oldest business event was recorded and there is evidence accounting systems were utilized in ancient Greece, China, and Rome (Knežević, Stanković, & Tepavac, 2012). Managerial accounting is a relatively new function of accounting and provides information such as capital investment status, payback period, planning and controlling, budget, etc. to internal users and decision makers (Moorthy et. al, 2012). With managerial accounting having such an integral role in an organization it makes good business sense to integrate the two. Since managerial accounting plays such a major role in planning, controlling, and decision making activities, the faster and more accurate the data is, the better. Objective and timely information is important to the economic efficiency of business and is supplied by the accounting department or system. The ultimate goal of the application of IT in managerial accounting is to gain a competitive advantage (Moorthy et. al, 2012). The primary objective is to collect and record data and information on information and events that have an economic impact on organizations and the maintenance, processing, and communication of information to internal and external stakeholders (Christauskas & Miseviciene, 2012). Information technology (IT) is a tool that plays a major role in helping a business be more efficient and successful (Moorthy et. al, 2012). IT has reformed traditional accounting and has enabled growth of processed accounting information, reduced the amount of routine functions by automating them, and made information available fas... ... middle of paper ... ...ts to revenues as incurred. Kai Peters of Ashridge Business School believes that by 2022 accounts will be providing more insight-based information and there will be a greater need for strategic accounting expertise. Sean Wilkins, CFO Tesco Malaysia, predicts more accountants as business partners, development of insight, not data, and more of an influencing role than reporting. Bill Schneider, CFO Kansas City Chiefs, believes the future will have more of a demand for more information, right now will lead to more emphasis on process skills, preventative controls, and anticipating customer/investor/client needs. Finally, Bill Schneider, director of accounting AT&T, predicts the CFO will continue to be more involved in advising and strategic development and planning and that the role will evolve into a strategic, analytical, forward-thinking position (Doherty, 2012).
Over one million people are employed as accountants, and most can be found in private business and industry. “Nearly 40 percent of all accountants are certified, and about 10 percent are self-employed’(Caruna, 1). In addition to openings resulting from growth, the need to replace accountants who retire or transfer to other occupations will produce thousands of job opening annually in this large occupation. The Occupational Outlook Handbook states that the expansion of accountants is related to: “increasingly complex taxation, growth in both the size and the number of business corporations required to release financial reports to stockholders, a more general use of accounting in the management of business, and outsourcing of a...
This case assignment will discuss managerial accounting and different income statements a business owner may use internal to the company. Divided into two parts, part one will discuss and analyze the difference between managerial and financial accounting, the needs for financial information used for internal purposes. Additionally, it will focus on the managerial accounting profession and how its roles have changed in today’s business. Expanding on the profession, it will comment on the Certified Management Accountant (CMA) certification and how it differs from the CPA certification. Part two of this assignment
Sahira has received employee complaints about the lengthy time it takes for her team to create financial reports. Her team explains that the computers are the problem and that the software programs are too difficult to use and that many hours of manual manipulation of data are required to complete monthly reports (Colorado State University-Global Campus, 2014, p. 6, ¶3). The management dilemma can be described as: Delays in financial reporting? (Appendix, Worksheet box 1). Upon further examination, the specific management question to be addressed is: Can financial data management be made more efficient? (Appendix, Worksheet box 2). Consequently, the research questions are: 1) How to streamline data for financial reporting? and 2) Is a new accounting software system needed? (Appendix, Worksheet box 3). Finally, a key accounting and financial management theory at play here is that of efficiency in data management to improve efficacy and timeliness of financial reporting.
Management accounting in organisation is very important for decision-making and to make the business more efficient and therefore increasing its profits. Is the process of preparing accounts that can help managers to make day-to-day and short-term decisions, by providing them with accurate and timely key financial and statistical information...
In conclusion, using financial statements in managerial accounting helps with the planning, controlling, and decision making process of a company. The information from the financial statements are used to analyze and establish budgets, forecast, variance reports, and ratios relating to the stability of the company. Managerial accounting data gives information driven info to these decision which can enhance decision making over the long haul. Business directors can influence this influential device to help make their business greater by seeing how managerial accounting profits regular business decision connections...
Business requires the appropriation of funds and the analysis of how these funds are and should be used. The primary task of an accountant is to account for all transactions that were done over a period of time for a specific organization and to arrange these facts into financial statements that can be analyzed. The two main types of accounting, financial and managerial accounting are used to evaluate a businesses financial status through financial information that is specific to the audience. Although financial and managerial accounting use similar primary financial statements, the analysis of the documents and the information presented differs tremendously primarily because the financial accounting statements are directed to external users and the managerial accounting statements are directed to internal users. This difference varies the information presented on the financial statements and the analysis that can be surmised from reviewing the documents.
While accountants, who are usually trained to be more conservative in accounting for assets and liabilities, would like to make more reliable recognition (in my opinion, would prefer historical cost method), corporate management and investors may want more relevant information in order to make strategic or investment decision. Due to the conflicts of different parties’ needs, the choice between two accounting models may continue. Still, in addition to the choice of accounting model, the issue of information overload is getting more attention than before. Besides reliability and relevance of financial information, selection of information and the way to present it for users also matters since these factors affect the users’ ability to effectively utilize the
Stair, R.M., Reynolds, G.W., Gelinas, J.U. Jr., Sutton, S.G., Hunton, J.E., Albright, S.C., Winston, W.L. & Zappe, C. (2007) Accounting Information Systems and Financial Modelling, Thomson, South Melbourne, Victoria, Australia.
Accounting provides economic and financial information for investors, creditors, external users, and the general public at large. Financial accounting is an aspect of accounting is the associated with the complexity of preparing financial statements: the Income statement, Retained earnings, Balance sheet and statement of cash flow. Financial accounting is the battlefield in the business world today. It is faced with unprofessional accounting practices that delve its principles. According to Valter W.J (1972), generally accepted accounting principles incorporate the consensus at any time as to which economic resources and obligations should be recorded as assets and liabilities, which changes in them should be recorded, when these changes should be recorded, how the recorded assets and liabilities and changes in them should be measured, what information should be disclosed and how it should be disclosed, and which financial statements should be prepared. Recognizing these issues, identifying the principal element, and alternatives is the rock upon which accounting ethical standard lies.
Inside a corporation, management accountants are responsible for these decisions with their responsibilities including “management decision making, devising planning and performance management systems, and providing expertise in financial reporting and control to assist management in the formulation and implementation of an organization’s strategy”.(Institute of Management Accountants, 2008) . With all these responsibilities many management accounts have encountered various problems, particularly in collecting the data, classifying it, and then processing it. However, new accounting information’s systems have made it possible for large scale corporations and management accountants to easily classify, collect, and standardize financial information. One of those powerful tools which has greatly helped management’s accountants fully process and gather is Enterprises Resource Planning (ERP) system.
According to Professor Clark of APSU, “Accounting has changed more since 1980 than in the previous 4000 years” (Clark, 2016). The prime reason for this exponential growth in the last 35 years or so is the impact the internet has had on all of our lives. As access to the internet grows, more small businesses will be able to grow. The technology, access and speed of the internet will need to continue to match the exponential growth of the technology that uses it. So far, that seems to be the
Accounting dates back as far as first centuries, is the language of business. As everything has gone through many changes, accounting has also changed many times through out the centuries. It went from the use of abacus to the most advanced softwares, and computers. With these drastic improvements nowadays accounting, financial accounting and management are facing big challenges. From the presentation of the reports to communication to the users, investors, and owners, the accounting field has gained totally a new shape from two decades ago. Today with the dynamic change in every aspect of life, the accounting field has to act fast and be able to adapt these new changes and challenges in order to survive.
I am interested in conducting research and teaching in managerial accounting, auditing and assurance services and accounting information systems. In particular, I am interested in exploring the role of accounting information systems in decision making, internal control, and auditing. In order to gain an appreciation of these and related issues, it is essential for me to have a strong grounding accounting, accounting information systems, information technology, managerial accounting, as well as gain a general economic and management perspective.
What is the accounting cycle? The accounting cycle is the name given to the collective process of recording and processing the accounting events of a company. The series of steps begin when a transaction occurs and end with its inclusion in the financial statements. The introduction of computerized accounting systems, provide major advantages such as speed and accuracy of operation, and, perhaps most importantly, the ability to see the real-time state of the company’s financial position. In my paper, I have listed and explained all the steps in the accounting cycle and have also stated through research, how computerized accounting can help with the accounting process as a whole.
Accounting is one of the fastest growing fields in the United States It expands each time a new store, a factory, a filling station, or a school goes up, whether in a large city or a small town. In today's society, the demand for good accountants for exceeds the supply. As our country has expanded, business and industry have become more and more complex, so control here is very important. And control depends on a great deal of the bookkeepers and accountants who can analyze figues and advise management on what should be done. They are using more scientific ways changing money, figuring change, and collecting sales taxes. Moreover, department stores and other companies now have plants and offices widely scattered throughout the country. A new set of bookkeepers and accountants, is needed at each branch. I know there are many managements supervisory, and junior or senior executive positions are bing filled by people who started as accountants because accountants have the knowledge of methods and finance and comprehension of the fundamentals of business, and acc...