Accounting and Modern Organizations
Modern Accounting Systems affect on Modern Organization
Principles of Accounting 1 ACC205
May 13, 2012
Has modern accounting systems made a difference in modern organizations? In my opinion, modern accounting systems have made a difference in modern organization. Modern accounting systems fulfill the basic accounting needs while offering increased accuracy in tracking trends, enabling collaboration and giving quick access to data. Most successful organization are more and more concentrate on the management accounting system innovation, by using both technical model and sociological/behavioral perspectives to improve the value in their management accounting system (Seed, 1990). Computerized solutions offer the traditional transaction processing, classification of data and reporting while simultaneously increasing the range of inputs to give a clearer and more comprehensive picture of the financial health of a company. These features of modern accounting systems let management make better use of resources to increase profits while identifying cost savings and spending less (“Modern Accounting, 2012”). While some may say accounting systems is overwhelming, modern accounting has made a difference in modern organizations because it allows for continuous improvement and growth, reduce cost, reduce error, and increase value.
Management accounting developed as a practical aid to business managers and as a subject for academic teaching and research (Robert W.S, 1993). Management accounting thus explains that “It is the process of identifying, measuring and communicating economic information to permit informed judgments and decisions by users of the information” (Drury, 2009:3). Management accounting plays a very important role, where in which it gives the manager sufficient time and relevant information and set targets, monitor performance and systematically improve the efficiency and effectiveness of the organizations in