DOES FUTURE OF MANAGEMENT ACCOUNTING LIE IN STRATEGIC MANAGEMENT Essay

DOES FUTURE OF counseling ACCOUNTING LIE IN STRATEGIC MANAGEMENT ACCOUNTING - Essay ExampleIn the early days when people started conducting trade they learned to regulate financial information in a schemaatic manner. As time progressed further the concept of report gained popularity and people introduced several changes to make it much effective and useful for maintaining financial records. Management accounting is a branch of the traditional accounting system that is used by the managers to obtain the valuable information closely the business. Management accounting plays a vital role in the decision devising process. Managers use direction accounting to derive information while making business decisions.With time the international business milieu has undergone several changes. Due to the effect of globalisation, businesses have lost their geographical boundaries therefore there has been a compulsion of an accounting system that assists in understanding global business envi ronments. The governments of the different nations are also more concerned in making the business activities more transparent by making the accounting standards stringent. Therefore, the counsel has to maintain an effective accounting system so that information regarding the external environment can be used to make the business policies proactive.Requirement of an effective and advanced accounting system has resulted in the exploitation of a strategic accounting system. In the given project a thorough comparison entrust be made between management accounting system and strategic accounting system. The main take away is to analyse how far strategic accounting system is effective in overcoming the drawbacks of management accounting system and to assist managers in developing a sustainable business environment.Management accounting provides the information needful by the managers for planning, controlling and decision making (Jiambalvo, 2007, p.2). In the process of decision making related to resources allocation, making