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Accounting

Managerial accounting is intended to provide managers with the information they need to make decisions and run the company successfully. The information must be reliable, timely and complete. Its provision, however, is dictated by the accounting and management information system in place. In recent years, integrated systems known as enterprise resource planning (ERP) systems have become more widespread, even among SMEs. Computer costs have also dropped, while computer speed and capacity have increased.

-Discuss the effects of these phenomena on managerial accounting capabilities.

-Integrated systems should enable the collection of information in greater amounts and faster.

-Recall that managers need relevant and accurate information quickly in order to make good decisions.

-Have ERP systems also affected the organisation’s financial reporting process—i.e., the process by which the periodic financial statements are produced? Greater amounts of information may actually make financial reporting more difficult, instead of the differing objectives of the two types of accounting.

-Are there limitations that continue to exist, affecting the production of managerial accounting information?

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