The Development of the Management Accounting in the Future
The Development of the Management Accounting in the Future

Author(s): Teodora Roupska
Subject(s): Economy, Business Economy / Management, Accounting - Business Administration
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: management accounting; management accountants; competencies
Summary/Abstract: The question of the future development of management accounting is significant from the perspectives of both accounting theory and accounting practice. The management accounting system is organized with the primary aim of providing informational and analytical support to management for achieving optimal business outcomes. As management theories and practices evolve, management accounting also develops and improves. Changes in the external environment in which businesses operate began in the 1970s and 1980s with the onset of global competition, a trend that continues to this day. A management approach emerged, focusing on three key product characteristics: quality, cost, and timeliness of delivery. The information and analyses provided by management accounting must be directed towards these three elements. The continuous changes in the external environment, which are also characteristic of the current stage of socio-economic development, necessitate the application of strategically oriented management for the successful operation of an enterprise – management that is focused on the longer-term future. This creates a need for information and analyses in a strategic context. Such information and analyses are long-term and relate not only to internal but also to external phenomena and processes, taking into account potential risks that may arise. Traditional managerial accounting must evolve in line with strategic accounting, just as the operational management of an enterprise must align with its strategic management. The widespread digitalization that has occurred has significantly changed the conditions for business and its management, while simultaneously enabling the development of modern managerial accounting models. Managerial information and analyses are created by people – management accountants, who organize and oversee the functioning of the management accounting system within the enterprise. Whether the information and analyses produced meet the informational needs of management depends largely on the qualifications and competencies of the management accountants.

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