The paper "Management Accounting Innovation in Modern Organisations" is an outstanding example of finance and accounting coursework. Modern organisations are largely being driven by management accounting innovation; they can achieve a competitive advantage, maintain continued performance and thus manage to prosper through constant gradual innovations. Management accounting in its own setting can be described as the process of preparing management accounts with a singular objective of providing precise and accurate as well as timely financial and statistical information required by accounting management agents for decision-making. Accounting reports normally indicates the amount of available cash, outstanding debts, accounts receivable, raw materials and in-process inventory.
The art of accounting management varies from one firm to another depending on the company’ s policy and structure (Schaltegger, 2008). Experts have established that management accounting use accounting, management, and finance coupled with high-end accounting techniques required for delivering business success. This management entity is highly instrumental in aiding managers about monetary implications with regard to different undertaken business projects; in essence, the latter is extremely helpful in explaining the financial consequences particularly with regard to the company’ s business decisions (Smith, Abdullah and Razak, 2008).
In the same line of discussion, management accounting is a useful tool in the business strategies formulation especially those aimed at improving the company’ s desirable performance and management. Similarly, it not only offers an essential platform for the company’ s internal auditing and checks but also used as a parameter for explaining the effects of the competitive landscape surrounding the firm. This paper extensively discusses Management Accounting Innovation; in this essence, the paper will discuss management accounting innovation in modern organisations, the role of management accounting in driving innovation, the role involvement and sustainability of innovation, and management accountants and innovation acceleration. Management of Accounting Innovation in Modern Organisations Management accounting innovations for the past years were developed and used by several companies including Activity Based Costing (ABC) and Balanced Scorecard (BSC).
The adoption and use of BSC and ABC together with other management accounting innovations have vastly helped companies to improve their performance (Alcouffe, Berland & Levant, 2008). Currently, companies have either adopted these innovations, are in the process of acquiring these innovations, and/or are vetting the net benefit that will result from the adoption of management accounting innovations.
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