Should Accountants Have a More Significant Role in Corporate Decision-Making

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Should accountants have a more significant role in corporate decision-making? In the changeable world with dynamic economic situation and fluid market information, corporate decision-making is becoming increasingly difficult for many enterprises. Under these circumstances, executives and managers are expected to be equipped with accurate, related and real-time information and live up to expectations of strong profits and growth (Royaee, Salehi and Aseman, 2012). Accounting and financial information, which is becoming easier to collect and access, is widely employed by decision makers as the main resource of information in the process of managerial decision making. In other words,the primary purpose of an accounting…show more content…
Generally, the directing progress of a decision making model for managers to follow is: gathering information; making predictions; choosing the best scheme; implementing the decision; evaluating performance. Obviously, accountants make a crucial contribution in furnishing a solid foundation for decision-making in the first two steps. Secondly, with regard to management accounting, there are strong differences when compared to financial accounting. First and foremost, the purpose of management accounting is primarily highlighting forward-looking information rather than presenting historical events. Instead of being designed to be used by external users, such as investors, creditors, shareholders and public regulators, management accounting is intended for use by managers within the company. Because of its internality, management accounting information is usually classified and employed in the management process, instead of being reported to the public. Moreover, MA is generally model-based with a certain degree of assumptions to support decision making while financial accounting is basing on case study (Shah, Malik & Malik, 2011). A pivotal function of MA is that it is an effective tool not only for cost measurement but also for decision support and cost planning. Next, it is imperative to fully understand why rules in accounting are important for corporate decision making. Accounting rules which are presented in accounting information are considered as a
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