ISSN: 2222-6990
Open access
This study analyzes the use of Information Technology (IT) in management accounting and also
the potentials and drawbacks of adopting IT in management accounting. IT changes frequently
and accounting standards remain for many years without any major change. IT and
management accounting are vital to both small and large organizations. Accounting bodies and
communities have instantly stressed the need for a shift in accountants’ education by
increasing the knowledge of information systems and IT knowledge. This paper examines the
relationship between IT and management accounting. The past literature also indicates the
potential of IT in management accounting that will simplify the calculation process and better
presentable options of the business data for effective decision making. The literature findings also indicate that IT has major impact on the costs, as implementing IT will result in big
spending on the technology hardware, software and IT personnel. The study also shows that IT
can improve accounting department efficiency and produce result effortlessly, timely and
accurately. Accountants are recommended special attention to this issue.
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