The Future of Management Accounting: Regaining The Relevance Through Value-Creation and Human-Relations Perspective

Abstract

This essay argues that the future of management accounting depends on the ability of management accountants and researchers to move it from cost focus to value-creation and human-relations perspective focus. This essay examines the historical goals of management accounting, the future environment of management accounting and control system, and regaining the relevance of management accounting through value-creation and human-relations perspective. The historical goal of management accounting development has been intended to provide an accurate costing system, controlling efficiency, gaining competitive advantage, and achieving organization goals (mainly on profit). Therefore, management accountants are still performing as the collector and presenter of financial data to help managers in decision-making rather than as part of the team of decision-maker. In contrast, the future global competition as the main part of the language of business is expected to continue in the future. The rapid change of technology seems to develop continuously to compress lead times for managerial decision-making and innovation. Furthermore, social stakeholders will pay attention on the corporate social responsibility such as human relationship between managers and employees, environmental sustainability, customers’ safety, and the role of firms and managers in achieving the macro or national economic goals. To regain the relevance of management accounting and to deal with the future, the roles of management accountants have to move from collector and presenter of financial data to team member and change agent. Human-relations perspective seems to be more important as the main part of management accounting and control system. If management accountants are not able to deal with value-creation and human-relations perspective, it is expected that management accounting will lose the relevance for the second time.