Page 1 of 7

Should Accountants Have a More Significant Role in Corporate Deci...

Continues for 6 more pages »
Read full document

Should Accountants Have a More Significant Role in Corporate Decision-Making

Page 1 of 7
Should accountants have a more significant role
in corporate decision-making?

In the changeable world with dynamic economic situation and fluid market information, corporate decision-making is becoming increasingly difficult for many enterprises. Under these circumstances, executives and managers are expected to be equipped with accurate, related and real-time information and live up to expectations of strong profits and growth (Royaee, Salehi and Aseman, 2012). Accounting and financial information, which is becoming easier to collect and access, is widely employed by decision makers as the main resource of information in the process of managerial decision making. In other words,the primary purpose of an accounting report is to provide adequate and reliable data which helps managers to orientate the current situation and make decisions for sustainable development. This paper is going to argue that accountants and, in particular, management accounting should be valued more and should have a more crucial role in managerial decision-making. To establish the need for greater recognition, the essay will firstly elucidate the roles of management accountants and management accounting in a firm’s managerial process. Then, the rules of accounting decision-making will be presented to show their affectivity for a business. The pivotal influences of accounting reports in the process of decision-making are stated as a third step. The last section of the paper will examine the drawbacks of accounting decision-making.

Before illustrating the roles of management accounting in managerial process, to clearly clarify its importance in a company, it is imperative to understand the historical background of management accounting. According to the Institute of Management Accountants (IMA), management accounting (MA) is a profession that involves partnering in management decision-making, advising planning and performance measurement systems, and providing...