Future of Strategic Management Accounting Coursework - 1

Future of Strategic Management Accounting - Coursework Example In order to come to the discussion whether management accounting’s future lies in strategic management, it is necessary to start from the base of it. Management accounting has its features in contrast to financial accounting and it would be wrong to compare the two. Management accounting is designed to be used by managers and not by other stakeholders of an organisation. Unlike financial accounting, management accounting is confidential to an organisation and is not reported as public information. And above all the most important distinction between the two is the technique used. The computing techniques are on the basis of the needs of the organization and it hardly follows the general accounting standards. In recent times there has been a shift in the practice of management accounting as it extends its scope towards certain other areas like the strategic management, performance management and risk management. The discussion in this research paper will be confined to the role of strategic management in management accounting. The purpose of strategic management is to play an advancing role to the concept of traditional management accounting. But there have been some criticisms also regarding changes in the implementation of management accounting. The main aim of the research paper is to critically evaluate the controversies and arrive at a distinct conclusion regarding the best practice. Management accounting systems in the past years, before the innovations in information technology, have seen many problems in its applications in organisations.