Developing a Strategy-based Conceptual Database Design Framework Integrating the Balanced Scorecard and the REA

Abstract

Recently, there is increasing concern that accounting, the language of business, is not expressive enough to match the potential created by the phenomenal growth of technology. While accountants have also taken a leading role in developing frameworks for performance evaluation that encompass financial and non-financial measures, antiquated accounting systems design methods prevent them from fully availing of the opportunities to expand their role supporting firm-wide strategic management and control. The accountant can provide greater support in this area through greater involvement in the design process, particularly through models such as the REA. This paper tries to establish a logical link between the design potential of the REA model and the performance measurement framework provided by the balanced scorecard. This link can provide the basis for an integrated conceptual database design framework that can enable the accountant to assist in the development of meaningful accounting information systems, and could strengthen the role of the accountant as a partner in the development and evaluation of corporate strategy and planning.