Review: Information Roles in Accounting Tasks-A Multiple case study

Information is valuable resource for business these days. We need useful, relevant and timely
information for business decision. Business world has changed rapidly due to globalization, IT
and technological development. Information technology has major impact how companies work
and control their resources. This article focuses on IT effects on solving management accounting
function.IT helps out to search and get information that is needed. Due to introduction of
integrated system such as ERP, Internet and Intranet they have revolutionized business practices.
Previously role of accountant was limited as book-keeper and turned into financial reporter.
After that it changed to merely interpreting information due to emergence of management
information system. But now due to complex business environment accountant role is of ‘critical
thinking skills’ such as designing business processes, developing E-business models, and
providing independent assurance and integrating strategic knowledge. This is significant role
which depends on information technology.

The case-study approach was used in six manufacturing companies. Face to face interviews were
conducted and accounting documents were analyzed for empirical study. The results were found
which supported the criticisms on accountants that they are excessive perfectionist, use excessive
data schemes, formal and legal procedures are used which make managers to construct their own
accounting documentation which they understand better. In case studies, we found that
sales/marketing used accounting documents prepared by accounting department but
operation/production used their own made documents. There is difference between them because
they are made according to their needs this system was implemented successfully externally
because sales/marketing used accounting documents but not implemented internally
(production/operation department) because they cannot understand the accounts documents.
Accounting documents are made just to understand the current state of company, identify
problems and solve problems. But managers want information that they can understand. We
should decentralize tasks so that needs can be fulfilled such as if we give budgets preparation to
low-level(particular) managers they can better make as compared to top level management
because they are not aware of particular situation and also we can empower our employees to
better perform. We cannot separate IT from accounting because Accountant use sophisticated
management accounting techniques which are dependent of IT existence. We can benefited from
IT if is implemented in long-term.