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Affects of modern technology
Effects Of Technology
Effects Of Technology
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Introduction
In the last decade, there was a widely on-going debate on whether the roles or the expectations of management accountants have changed (Burns and Baldvinsdottir, 2007). Professional accounting bodies all over the world have conducted researches on the changed in management accounting by interviewing businesses in their countries (Forsaith, D., Tilt, C. and Xydias, M.L. 2004). Before discussing in depth, we need to first define what the basic functions of management accountants are.
In the past, management accountants were required to provide information. They functioned as support staff, providing timely and understandable information to business managers at a certain quality. However, in recent days, according to the Chartered Institute of Management Accountants (CIMA), a chartered management accountants need to perform the following functions including "advising managers about the financial implications of projects, explaining the function consequences of business decisions and formulating business strategy (CIMA website)." Their role has evolved from serving internal customers into a business partner (Siegel and Sorenson, 1999). Nowadays, management accountants have taken up more responsibility in day-to-day, strategic and short-term decision making, which means they are empowered and have a say in the team. Management accountants will analyse the information and decide whether and why that particular types of information is relevant to the business plan, as well as suggestion for improving the quality of the decision.
Arguments in favour of the changing role
The most common change factors cited in the literature are, the adoption of new tools and techniques which potentially enhance accounting practices, ...
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...o become an all-rounded business manager. With the increase in global competition in accounting services, management accountants need to change themselves in order to fit in the fast growing business world. Today, it is more important for accountants to develop their personal skills rather than technical skills: management accountants need skill in communication, strategy, decision-making and adaptability. It seems that there is a need for more emphasis on the management than the accounting area.
As Byrne and Pierce (2007) have highlighted, such a transition is not as straightforward as anticipated and in order to fulfil this role, the management accountant must overcome considerable challenges and conflicts. Therefore, it cannot be argue that the roles of management accountants is not changing but it is appropriate to say that the role changing is in a slow pace.
The functions of managerial accounting include planning, decision-making, controlling, and evaluation. To make good decisions, managers must constantly adapt to technological changes, changes in the organization's needs, and new approaches to other functional areas of business-- marketing, production, finance, organizational behavior, and corporate strategy. Planning is the setting of goals and developing strategies and tactics to achieve them. Controlling is concerned with achieving the goals and evaluating performance. The success of an organization lies heavily on the shoulders of those making these decisions.
The literature suggested that “Rapid changes in the external environment of organisations have been accompanied by calls for accountants to change the nature of information they provide, the skills they possess and the role they play in the organisation. The proposed changes, which are encapsulated under the phrase accounting for strategic positioning or strategic management accounting are two pronged. On one hand accountants are required to reposition themselves in the organisation hierarchy where they will be involved in the formulation, implementation and choice of strategies. Accountants are also being urged to adopt a range of techniques whose emphasis is futuristic and external to the firm especially emphasizing the importance of monitoring customers and competitors.” (Nyarnori, 2000). Based on my studies on the industry of stock brokerage, I agree with the statement that “The tools and techniques that were covered in the Strategic Cost Management and Strategic Business Analysis courses are very useful in providing decision oriented information to senior management in my organisation and such information will ultimately enhance its corporate value.” The essay (How Porter’s Five Forces Model shapes strategy for a new and small-size stockbroker) may be one of applications of those techniques learnt from the Strategic Cost Management and Strategic Business Analysis .
When the business environment changed, the need and content of accounting information would change, and hence affecting the nature of the role of MA. There are two main factors that have changed the business environment, the financial crisis and IT development.
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...
Management accountants use their skills to help with decisions that help a business make good decisions so they company will be valuable and in an ethical manner. They assess risk and implement strategy through planning, budgeting, and forecasting. Now managerial accounts have become critical with their analysis while managing a business. They do more than provide financial information they also have an active role in the business. Over the years managerial accountants has changed and now provide nonfinancial information. They can help a business achieve their goals. Today there is many things that is influencing how managerial accountants do their job with the emergence of e-business. They can use their knowledge to streamline the e-business (Hilton,2008). Now global competition has new challenges for managerial accounts because trade agreements can affect the way the business performs abroad. Gillet (n.d) said, “To be competitive, manufacturers must keep up
Garrison, R. H., Noreen, E. W., & Brewer, P. c. (2010). Managerial Accounting. New York: McGraw Hill/Irwin.
The stereotypical image correlated to the account mirrors that of a public accountant. An individual working as a public accountant can expect to work as an independent third party to a multitude of companies. As this third party it is their duty to oversee financial transactions to ensure that the statements of not only the company, but also its’ supporting companies, correctly correspond and match up to the position, results and cash-flow of the clientele. This general quota outlining a public accountants job description is not the same for a private accountant. The main difference between a public and private accountant is that unlike the public and its handle on a multitude of accounts, a private accountant specializes with a certain company or field. With this specialization, a private accountant tackles setting up a system that records the transactions within the business. The recordation of the transactions is then generated into statem...
Subsequent to obtaining the accounting information, managerial accountants will then proceed to use it to plan, evaluate the company performance and also control the business operations. With regards to planning, the managers are required to make decisions concerning the kind of product to introduce into the market, when to introduce the product and where the production should take place. In performance evaluation, individual product lin...
Heisinger, K., & Hoyle, J. B.(2012). Accounting for Managers. Creative Commons by-nc-sa 3.0. Retrieved from: https://open.umn.edu/opentextbooks/BookDetail.aspx?bookId=137
All of my life, I have loved numbers. No matter what subject I was studying, I would try to incorporate numbers in school. My mom has told me that I would always know how much change I would be getting back after buying something when I was really young. Now, my mom has me take care of much of the financials in our family and I love doing it! These many things have led me to wanting to become an accountant. The amount of time and effort I put into math and accounting classes shows just how much I love the two subjects. I have always been told that I would be a great accountant because I love dealing with money. I am also very honest and would never try to manipulate anything. On standardized testing, the main subject it said that I should study was accounting.
What does the accountant of the future need to be successful? A sturdy education that while is based on traditional accounting practices, also prepares future accountants for the plethora of changes happening in the accounting universe. Frequently, most of the institutions responsible for educating professionals fail to evolve as rapidly as the professional practice itself (Bedford et al. 4). In every way, accounting is expanding and in order for the future to have competent accountants, accounting education must expand as well. Major changes occurring in the world of accounting include the expansion of services and products, changes in competition, an increase in specialization, and an increase in and an advancement of technology. It is up to academic institutions to find proactive ways in which to prepare students for such changes. Accounting education of the future will require more breadth to cover the inevitable expansion of services and products, increased knowledge of economics, marketing, management and information systems to increase competitive advantage, a balanced course load that provides a general accounting knowledge as well as increased knowledge of a specialization, and also a greater, proactive focus on the use of continuously advancing accounting technologies (Bedford et al. 8). Also in play is the chance of change in accounting standards, the move from US GAAP to IFRS. While there are no certainties surrounding the threat of such change, students in the U.S. should acquire at least a general, basic feel for the practices used in regards to IFRS. The future health of the accounting profession depends, to a great extent, on the health of our students (Gormon and Hargadon 4). Reorganization of curriculums would surely be difficult and assumedly time-consuming, but nevertheless, completely
The field in business is very widespread all over the world whether it be in North America, Latin America, Europe, Asia or Africa. There are many branches of business but a very common one is business management. Business management is all about organizing, directing and coordinating businesses in whatever they do. Managers oversee these businesses and guide them in the direction that best suites them.Management is found in all industries, food, banking, education, healthcare and clothing. Every company has a business manager which makes this such a big field career. It does not matter if they are small companies or big ones, regardless, someone will need to overlook over the company and set rules for what needs to be done in specific areas. Some areas can be financially, they decide where the money goes and what needs to be bought. Other areas require the physical look of the company like advertisements, window displays and store displays. Of course here are professionals who create the displays and advertisements but it is the business manager who tells them what to do, they just follow orders.
Accounting aids the government and organisations in decision making for their financial stability. This numerical data helps solve real life problems and contributes to how the economy and businesses perform.
prospects, a good salary and also a plenty of opportunities for you to progress. In order
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...