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 faster (Kundeliene, 2010).
The rendering accounts function and company management function are two of the main functions of an accounting system (Knežević, Stanković, & Tepavac, 2012). The rendering accounts function falls under financial accounting, while the company management function would be primarily looked at in the managerial accountanting realm.
The following list ranks United States accouting professionals top ten priorities in IT initiatives.
1. Managing and retaining data
2. Securing the IT environment
3. Managing IT risks and compliance
4. Ensuring privacy
5. Managing system implementation
6. Preventing and responding to computer fraud
7. Enabling decision support and analytics
8. Governing and managing IT investment and spending
9. Leveraging emerging technologies
10. Managing vendors and service providers (Drew, 2013)
Management accounting stemmed from rapid development of modern manufacturing during the industrial revolution (Marchant, 2013). Use of computers to aid in business data processing began in the 1960s with the third-generation mainframe computers (Alali & Chia-Lun, 2012). Client server applications came in the 1980s and the Internet in the 1990s. Grid computing allowed performing...