The Impact Of Technology On Managerial Accounting Essay

Introduction Technological advances have dramatically changed many aspects within organizations and influenced how they operate today. In particular, technology has modernized accounting information in the way that it stored, shared and transmitted. Technological advances have changed practices for management accountants, who provide financial statements for external users such as investors and government agencies and accounting information to internal users which primarily are managers within the organization. Most importantly for businesses, managers have also been influenced by technology in the way they retrieve and evaluate accounting data to make decisions, plan and control the business. Technology provides a multitude of advantages to organizations; however, some would argue the advantages comes with disadvantages. Regardless, both management accountants and managers must be aware of technological advancements and use them to their advantage to ensure the company maintain s its position in the marketplace. Evolution of Technology in Managerial Accounting The increased use of computers and the internet has significantly influenced change in managerial accounting. It is rare to find an organization that maintains its financial bookkeeping manually through the use of notebooks and pencils. Accounting books have been replaced with electronic spreadsheets and documents, accounting information systems (AIS) and enterprise resource planning systems (ERP). The demandShow MoreRelatedManagerial Accounting And The Certified Management1408 Words   |  6 PagesManagerial accounting is used by an organization to ensure informed decisions are made regarding current and future operations. 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