Question

How do management accountants get value from, and measure the value of the information obtained from the digitalization (technological advancement) accounting system for decision making? How will it push the boundaries of how accounting will be conducted? Discuss (300 words)

Answer 1

Accounting is a process of recording financial events related to a business entity for the uses of its audience by using standard accounting procedure. From this it is very important to note that financial information play the fundamental role in preparation of accounting books. Understandably no information regarding financial transaction means no recording and no proper books prepared in the end. Therefore procurement of information is very important for a management accountant. Upon deep understanding, it is well known how important is the financial reports for an organization in business and statutory prospectives. So procurement of information for processing forms the basic responsibility of an accountant.

In earlier days of non automation, such relevant information only could be obtained in the form of written notes. An accountant of those periods had to wait until the information comes to him. There was no means for an accountant of those days to pursue any information related financial transaction on a far range. In other words the procurement proess was such that an accountant would record the information when it goes to him or her. He or she could ever pursade any information if it were , even on a moderate distance range. This was a very big concern , as the recording process became difficult and time consuming for even a moderate scale business. Its because the information had to reach the accountant as per standard norms for a record to be made. Since it was completely manual process in earlier days , delay in information system was inevitable. This delay affected the process of accounting from vocher preparation to finalization. But things changed with the advent of digitalization with the techological advancement. With digitalized automation, the globe is kept instantly connected all across, where ever it is required and relevant. In the sense that any person can contact some other person in the world instantly, using an automated Internet system and supporting accessories. This advancement have completely changed the information procurement process of an accountant considerably. It is known that majority of the business entities across the world are automated with access to internet and are equipped with modern digitalized soft wares for almost all purposes. The globalization have made businesses to expand across its native boundaries. This has also changed the nature of requirements in all aspects of business. This include the field of accounting also. An accountant in modern time is required to procure information by pursuing it beyond far reaches. This has become possible with digitalization. The impact of digitalization on an accountant in information procurement is such that , it has eliminated all the adversaries detailed above. Its because since organization remain digitally interconnected in modern world, an accountant can pursue and procure the necessary information, if it is relevant to do so. He or she need not wait for the information to reach them, just like in olden times. This is the notable change which may be specified as of how a management account can procure the needed information using digitalization. The main point to mention here is that the process have became more sophisticated and acurate.

As mentioned above, the entities are connected with automated internet and softwares to function. Therefore a management accountant can procure his required information using relevant method of technical operation and value ,mesure ,record it and store such information for future uses using a digitalized soft ware . This how a management accountant can perform using using digitalization.

If we consider the benefits of digitalization specified above, we may very well assume that such digitalization have eliminated almost all possible adversaries and this pushes the process of accounting using digitalization to infinite limit of benefits.