The Evolving Role of Management Accounting in Strategic Decision-Making: A Study of Contemporary Practices in Data-Driven Enterprises

The Evolving Role of Management Accounting in Strategic Decision-Making: A Study of Contemporary Practices in Data-Driven Enterprises

Muhammad Saleem Ullah Khan, Juliet Sophia, Pavithra Shetty

Department of Business and Management Studies, Gulf College, Muscat, Sultanate of Oman

DOI: https://doi.org/10.51244/IJRSI.2025.120600133

Received: 05 June 2025; Accepted: 14 June 2025; Published: 15 July 2025

ABSTRACT

This study aims to find out how the role of management accounting has grown in helping enterprises make key strategic decisions with the help of data. Initially focused only on managing costs and preparing financial statements, management accounting has changed a lot because of advances in technology, globalization and growing complexity in organizations. With the help of a detailed review of literature and analysis of information from external sources, the research shows that adopting new standards like Activity-Based Costing (ABC), Balanced Scorecard (BSC) and predictive analytics, management accountants can support strategic decision-making. According to the findings, management accountants are now important in shaping future business strategies which is made possible with artificial intelligence, up-to-the-minute dashboards and business intelligence systems. It is pointed out that accountants now need to be skilled in data literacy, team up with people from other departments and use strategic thinking. Still, not everything is without issues; people need new skills, some are afraid to adapt and technology in some cases is challenging to integrate. One should encourage professionals to invest in themselves, adopt important frameworks for strategy and form a work culture that values accounting as a strategic skill. It is concluded that for management accounting to stay meaningful, it should keep changing and be recognized as a key supporter of adaptability and steady performance.

Keywords: Management accounting, Data driven enterprises, Activity based costing, balanced Score Card.

INTRODUCTION

Background

For a long time, management accounting was considered an area mostly meant for checking operations, calculations of budgets, measuring costs and supporting reporting within the company. Still, as technology, globalization and business complexity increased rapidly, human resources have seen big changes. These days, management accounting is an important aspect of both planning and making choices in a business.

Nowadays, in businesses that use a lot of data, managers expect much more from their accountants. Currently, their job is to give useful projections and advice for future actions, not just detail what has happened before. This means reading and making sense of financial and non-financial records, predicting future trends, studying risks and connecting each financial measure to the company’s targets.

Besides other duties, management accountants are responsible for setting and overseeing key performance indicators that represent the organization’s general strategies. They act in partnership with executives to achieve the company’s long-term goals, boost resource efficiency and create more value. Business intelligence, predictive analytics and data dashboards have streamlined how financial information is provided, making decisions easier and quicker.

For this reason, management accountants have to understand accounting, know about data, think strategically and collaborate with teams outside of their own. As they develop, their function plays a key role in helping organizations adjust, perform well financially and follow sustainable and innovation-focused strategies.

Problem Statement

With today’s advancements in technology and business plans, many organizations still find it challenging to adopt new methods in management accounting. In the past, management accountants mainly focused on keeping and analyzing past financial records, as well as preparing budgets, monitoring costs and noticing any differences from the forecasts. Yet, due to the growing use of data and the constant changes in business, the weaknesses of traditional job roles are easier to spot.

Because of the emphasis on real-time decisions, predictions and strategies for various sections of the company, management accountants are expected to help lead with strategy as well as financial oversight. Still, lots of companies, especially ones adjusting from old IT systems or specializing in sectors like manufacturing and technology, find it hard to fit accounting to their overall strategies. Many question how the use of ABC, BSC and business intelligence platforms can be fully included in making decisions.

Despite there being more data available, changing it into useful findings for business advantage is hit-or-miss for most companies. There is still a skills gap, as a lot of accountants do not have the technical and analytical abilities needed to carry out these new tasks. The separation prompts worry about how efficiently management accounting helps create lasting value and keeps the organization flexible.

For this reason, it is necessary to study how management accounting is changing to keep up with being strategic, mainly in companies that depend heavily on data to stay successful.

Research Objectives

• To examine the transformation of management accounting from a transactional to a strategic role.
• To evaluate the integration of data analytics and decision support tools in management accounting.
• To analyze the use of modern frameworks such as the Balanced Scorecard and ABC in strategy formulation.
• To investigate how real-time data influences strategic decisions through accounting insights.

Research Methodology

This research study mainly depends on secondary data analyzed in a qualitative way. Authors base the study on research from academic journals, reviews of financial information, industry guides and popular journals like CIMA, IFAC and Harvard Business Review. The study aims to analyses and understand the way management accounting is now utilized in making business strategies, mainly in organizations that depend on data.

Only resources that met these three criteria were used for this research: relevance, credibility and suitability to the research aims. Performance measurement, integrating data with analytics and aligning strategies were some main themes separated and looked at using thematic content analysis. Additionally, examples of Unilever, IBM and Shell were analyzed to see what these companies do in practice and how the use of modern management accounting affects them.

The approach makes it easy to analyses trends, difficulties and innovations, since collection of basic data is not required which helps with conceptual analysis and comparisons.

LITERATURE REVIEW

Evolution of Management Accounting

At the start of the mid-19th century, management accounting was mainly focused on cost accounting to suit the needs of important industrial companies like railroads and steel firms. Major milestones in the business world at this time were the introduction of scientific management, the creation of ROI yardsticks and the practice of formal budgets and incentive programmes by companies such as DuPont and General Motors. Gradually, functions like discounted cash flow analysis and decision theory became part of management accounting to address the increased difficulty of running businesses and facing competition (Kaplan, 1984; Harnani, 2022; Kamal, 2015).

Agency theory, contingency theory and institutional theory are some of the theory frameworks that have helped form this field and provided different understandings of its purpose in organizations. Its main value is found in providing important information for management’s decision-making, planning and control processes. Organizational needs, new technologies and requests for faster and more relevant data have caused the development of management methods and principles (Miroshnуchenko et al., 2022; Harnani, 2022; Bauchadze, 2022).

Managers today are feeling the effects of digital technologies on their accounting practices. There are adjustments happening in analytics, where data is now collected unstructured, decisions are made by algorithms instead of people and companies operate on platforms instead of strict hierarchies. With these changes, management accountants are expected to acquire new competencies and take on new responsibilities as traditional organizations go digital (Arkhipova et al., 2024; Quattrone, 2016). Although digitalization makes it easier to monitor results and make better decisions, it also adds pressure and problems, including the uncertainties caused by too much reliance on data (Arkhipova et al., 2024; Quattrone, 2016).

Modern accounting for managers highlights analyzing strategy, handling risks, reviewing performance and using a mix of money-related and non-monetary forms of value. In recent years, organizations have switched from inflexible management systems to more open models that make it easier to respond to exciting ideas and new challenges (Harnani, 2022; Chenhall & Moers, 2015). Often, management accounting practices in small businesses are created through interactions among team members and these routines change with the expansion of the business and the appearance of new difficulties (Perren & Grant, 2000).

Some believe management accounting is a specific science, while others consider it simply as a useful activity in practice. It is different from financial accounting mainly because it focuses on helping inside the company, not communicating outside of it. Due to the demands of organizations, new technology and the goal of boosting managers’ decision-making abilities, this field is evolving in different directions (Miroshnуchenko et al., 2022; Bauchadze, 2022; Liang, 2004).

The Strategic Role of Management Accountants

Previous operational tasks are no longer a primary focus for management accountants, as they now spend more time being business partners and helping with decision-making. Now, their tasks cover helping with innovative projects, attracting the top manager’s attention and supporting the planning of important decisions, heavily contributing to differentiation strategies.

This area of accounting connects management accounting, strategic management and marketing to supply resources needed for long-term choices and securing a competitive edge. SMA practices work well and are more likely to be used when management accountants networking, information systems are high quality and there is a positive organizational culture. SMA is easier to use when information systems are reliable and there is excellent networking and outcome-oriented ways of working encourage its use outside accounting (Hadid & Al-Sayed, 2021; Roslender & Hart, 2003; Yarema, 2022; Turner et al., 2017).

Managers use MAS to provide the necessary data and insights to help them understand the environment they are in and select the best actions. What information is included and how it is used in the MAS help organizations deal with strategic issues (Heidmann et al., 2008; Yarema, 2022).

Management accountants in private and public sectors use certain accounting practices to guide strategizing and also play a role in forming and carrying out strategies. The duties of managers are flexible, as they depend on the organization, their rank and how the company operates in the market (Rieg, 2018; Cuganesan et al., 2012; Turner et al., 2017).

Strategic management accounting develops because of both internal and external influences. The role of management accountants now involves dealing with wider business matters, not only accounting tasks and they influence a company’s plans more as it responds to change and competitive factors (Yarema, 2022; Yi & Tayles, 2009).

Integration of Data and Technology

When management accountants use advanced technology such as AIS, business intelligence and analytics, they can quickly cheque and make important decisions with accurate data. Thanks to this integration, companies can respond quickly to new situations and do well overall (Yoshikuni et al., 2023). Now, companies are concentrating on creating an effective information systems framework and applying their resources to manage the company effectively (Yoshikuni et al., 2023).

AI and big data analytics are now helping management accountants draw useful findings from very large sets of data. XBRL and data mining help in strategic management accounting by processing and sharing business information efficiently which aids in better analysis and making future strategies (Wu, 2021; Zhao et al., 2022). Managers can benefit from AI immediately in management accounting, but there will also be challenges such as handling data and asking accountants to learn new things (Yaşar, 2024).

Combining big data analysis with management accounting greatly helps achieve sustainability for a company. Operations accountants rely on big data to help set up long-term actions that add to the success of their organization. Because of this integration, organizations can adopt more sustainable approaches when assessing their decisions (Abdelhalim, 2023).

With the help of technology, accounting tasks are now more efficient, accurate and automatic. So, management accountants have moved from performing data tasks to being strategic advisors, working on starting analysis, making predictions and planning for future strategies (Shaleh, 2024). Still, the transformation in this field results in issues such as cybersecurity threats and ethical topics (Shaleh, 2024).

Although the combination of big data and technology leads to more effective decisions, lower expenses and increased competition, it also brings difficulties. Examples are issues with keeping data organized, constant need to gain new skills and the danger of being overwhelmed with information. Technology’s impact on management accounting can only be seen in its fullest when resolving these difficulties is achieved (Theodorakopoulos et al., 2024; Yaşar, 2024). Although the combination of big data and technology leads to more effective decisions, lower expenses and increased competition, it also brings difficulties. Examples are issues with keeping data organized, constant need to gain new skills and the danger of being overwhelmed with information. Technology’s impact on management accounting can only be seen in its fullest when resolving these difficulties is achieved (Theodorakopoulos et al., 2024; Yaşar, 2024).

Summary Table

Technology/Approach	Key Benefits	Challenges/Considerations	Reference
AIS & Analytics	Strategic flexibility, real-time decision-making	Integration complexity	(Yoshikuni et al., 2023)
Big Data & Data Mining	Value creation, sustainability, deeper insights	Data management, skill requirements	(Wu, 2021; Abdelhalim, 2023; Zhao et al., 2022)
Artificial Intelligence	Automation, real-time value, efficiency	Ethical issues, cybersecurity, upskilling	(Shaleh, 2024; Yaşar, 2024)

The integration of data and technology is fundamentally reshaping management accounting, driving efficiency, strategic value, and sustainability, while also requiring adaptation to new challenges and roles.

Frameworks Supporting Strategic Decision-Making

More businesses are using AI and advanced data analytics in their key management accounting strategies. Using AI enables the improvement of management accounting by offering precise forecasts, better management of resources and higher success in the market. Such models allow brands to plan more precisely for the future and support decisions they take in response to external events by making use of advanced tools and algorithms (Ye, 2025).

In these frameworks, accounting provides all kinds of meaningful information to support a company’s strategic planning and important choices. SMA techniques which include costing, benchmarking, customer profitability analysis and investment appraisal, provide more information for strategic decisions in environments that are always changing and competitive. They are especially helpful when adapted for an organization’s own circumstances, mainly for small and medium enterprises (SMEs). This is because unpredictable environments, technology adoption and managers’ features play an important role in such settings (Kalkhouran et al., 2015; Suarez, 2022; Suarez et al., 2024).

Nowadays, people focus on merging AIS with new technologies like business intelligence and analytics so that companies can be flexible. They help with making decisions quickly based on data, managing a company and handling challenges as soon as they appear (Yoshikuni et al., 2023; Back-Hock, 1992). Organizations should make use of their information systems networks and effective management strategies to ensure better decision-making and more adaptability (Yoshikuni et al., 2023).

Approaches such as the Integrated Product Life Cycle use both strategy and cost analysis to help in making decisions about a product throughout its life. With the help of these frameworks, information for management decisions is comprehensive and can be adjusted to suit rapidly changing industries.

Whether these frameworks are successful depends on the organization’s culture, what the accountant is expected to do and how many resources are on hand. It is recognized through business partnering that management accountants should contribute to the creation of the company’s strategy with lessons stemming from their skills, their job and their role in the business (Pitcher, 2015). Even more, Adamova et al. (2020) and Malikov et al. (2025) suggest using internal reporting tools and diagnostic cards to outline the organization’s status in the market and future possibilities to compete, supporting better strategic judgments.

Summary Table

Framework/Approach	Key Features & Tools	Strategic Decision Support	Reference
AI-Driven Forecasting	AI, advanced analytics	Enhanced accuracy, resource optimization	(Ye, 2025)
Strategic Management Accounting	Costing, benchmarking, profitability analysis	Broader info base, long-term focus	(Kalkhouran et al., 2015; Suarez, 2022; Suarez et al., 2024)
AIS & Tech-Enabled Frameworks	AIS, BI, analytics	Real-time, flexible, data-driven	(Yoshikuni et al., 2023; Back-Hock, 1992)
Holistic/Product Life Cycle	Integrated data/methods, life cycle focus	Strategic product management	(Back-Hock, 1992)
Business Partnering	Organizational integration, skills emphasis	Active role in strategy development	(Pitcher, 2015)

Frameworks in management accounting increasingly integrate technology, holistic data, and organizational context to support robust, flexible, and informed strategic decision-making.

Activity-Based Costing (ABC)

ABC works by connecting resource usage to business activities which helps produce more precise cost records than old methods could. Through ABC, a company can enhance the way it works, improve its products’ affordability, measure costs with greater precision and make strategic and performance decisions (Kaplan, 1994; Maiga & Jacobs, 2003; Dekker, 2003; Patrick et al., 2015; Liu & Wu, 2016). You can further enhance cost management and make the strategy work better by using it together with the Balanced Scorecard (Kuzminskyi et al., 2020; Nielsen, 2022; Liu & Wu, 2016).

Balanced Scorecard (BSC)

The BSC is commonly used by businesses as it adds three non-financial elements: customer focus, improvements in internal processes and growth in learning and development. A strategic plan takes the company’s vision and makes it into specific plans, connects the company’s activities and gives helpful strategic feedback. With the help of BSC, companies explain strategy, organize resources, watch their results and make the business more profitable, keep customers happy and strengthen their position in the market (Kaplan, 1994; Maiga & Jacobs, 2003; Ayedh & Eddine, 2014; Patrick et al., 2015; Nielsen, 2022; Liu & Wu, 2016).

Value Chain Analysis and Benchmarking

Management accounting value chain analysis concentrates on making sure all activities in the value chain are properly organized and coordinated among various firms. It gives supply chain data, helps track expenses and supports analysis of possible strategic dilemmas. This task lets businesses assess their performance and systems against industry leaders which helps them get better all the time and outperform competitors. Some management experts confirm that applying value chain analysis and benchmarking methods to organization help achieve success and sound decision-making today (Shah et al., 2024; Nazaripour & Ravand, 2019; Ayedh & Eddine, 2014; Dekker, 2003). Recent studies point out that using ABC, BSC, value chain analysis and benchmarking is beneficial in management accounting. Joining these tools helps organizations match cost management to their main goals, enhance their way of checking performance and respond appropriately to rivals. By combining these tools, the role and value of management accounting is boosted in unstable and changing business situations (Kuzminskyi et al., 2020; Shah et al., 2024; Patrick et al., 2015; Nielsen, 2022; Liu & Wu, 2016).

Summary Table

Tool/Technique	Key Features & Benefits	Strategic Role in Management Accounting	References
Activity-Based Costing	Accurate cost allocation, process improvement	Supports strategic decisions, cost-effective design	(Kaplan, 1994; Maiga & Jacobs, 2003; Dekker, 2003; Patrick et al., 2015; Liu & Wu, 2016)
Balanced Scorecard	Integrates financial & non-financial measures, strategy map	Aligns activities with strategy, monitors performance	(Kaplan, 1994; Maiga & Jacobs, 2003; Ayedh & Eddine, 2014; Patrick et al., 2015; Nielsen, 2022; Liu & Wu, 2016)
Value Chain Analysis	Optimizes activities across value chain, interfirm focus	Informs supply chain, benchmarking, cost management	(Shah et al., 2024; Nazaripour & Ravand, 2019; Ayedh & Eddine, 2014; Dekker, 2003)
Benchmarking	Compares to best practices, drives improvement	Enhances competitiveness, supports continuous learning	(Shah et al., 2024; Nazaripour & Ravand, 2019; Ayedh & Eddine, 2014; Dekker, 2003)

Integrating ABC, BSC, value chain analysis, and benchmarking strengthens management accounting’s ability to support strategic decision-making and drive organizational performance.

FINDINGS

The Strategic Transformation of Management Accounting

Historical cost monitoring was the main focus for management accounting at first, but today, it plays a key role in shaping the strategy of a business. Modern management accountants play key roles in strategic planning, come up with new ideas and help ensure good performance. The need for technology-based leadership shows up clearly in organizations that make decisions based on data and technology. Making use of tools such as Activity-Based Costing (ABC), Balanced Scorecards (BSC) and advanced analytics has led to better and broader value creation insights in accounting.

Integration of Digital Technologies

A common focus in the literature is making use of technology such as accounting information systems (AIS), business intelligence, AI and big data. With these new tools, management accountants can give timely and useful information. Digital platforms help make strategies by keeping data accurate, speeding up decision-making and making it possible to forecast and act on results. On the other hand, this shift requires people to have data, integration and analytical skills.

Strategic Management Accounting (SMA) in Practice

Besides monetary factors, strategic management accounting involves using external and non-financial information to assist with future plans and standing in the market. Experts explain that using SMA is best in uncertain business situations and note that its success relies on top-class information systems, workplace culture and connexons among management accountants. This is possible mainly with the help of benchmarking, looking at customer profitability and analyzing the value chain.

Role of Specific Accounting Tools

The adoption of advanced accounting tools has strengthened the strategic dimension of the discipline:

• Activity-Based Costing (ABC): Provides more accurate cost allocation and informs strategic decisions in pricing, product design, and process improvements.
• Balanced Scorecard (BSC): Aligns business activities with vision and strategy through financial and non-financial performance indicators, enhancing long-term organizational alignment and performance monitoring.
• Benchmarking and Value Chain Analysis: Enable continuous improvement and competitive assessment by comparing practices against industry standards and analyzing value-generating activities across the supply chain.

These tools, when integrated, support a comprehensive management accounting framework capable of responding to both internal performance goals and external market demands.

Emerging Role of the Management Accountant

Managers no longer focus only on numbers but also play a part in leading, giving advice and helping with new ideas. Having strong technical skills and understanding of business, they are essential members of strategic talks. They should now team up with different teams, work with complicated data and affect major company plans.

Ethical and Cybersecurity Considerations

Since management accounting is becoming more digital, issues related to ethics and security are matters of greater concern. There are dangers that valuable financial and operational data might be accessed illegally, hacked, or altered when AI and related systems are in use. Managers in finance should know how to use technology and also learn about rules, data management, and ethics to protect the organization’s integrity. Sometimes, algorithms can suggest financial moves that go against what works best for the world and its people. That’s why, in strategic accounting, it is important to put cybersecurity measures and ethical standards in place for smart digital use. It is important for financial advisors to understand ethical issues and work together with IT security experts.

Challenges and Tensions in Transformation

Still, there are some problems left to solve. Such problems involve the gap between today’s accounting professionals and yesterday’s, the difficulties of integrating latest technology into existing systems and the reluctance of staff to accept changes. Also, attention must be given to ethical matters and cybersecurity when handling digital accounting practices. Working on these challenges is important for achieving the greatest strategic advantage from management accounting.

DISCUSSION

Because of digitalization, increased market challenges and the call for quick decisions, management accounting is now considered a major strategy in many organizations. From the studies and literature, it appears clear that management accountants don’t just handle accounts; now, they also help plan business strategies, create value and increase agility in businesses.

Strategic Role and Value Creation

Now, management accounting functions include the roles that were once carried out by people in strategic planning and business analysis jobs. Where companies rely on data, management accountants are found in teamwork with various functions and take part in forming and reviewing company strategies. Such professionals can use ABC, BSC and runtime analysis to support good strategies and effective use of resources. Thanks to these tools, people can stop only recording costs and start managing costs in a way that matters for the strategy.

Besides, the management accountant’s role focuses on encouraging long-term growth, exciting new ideas and the preservation of resources. With the help of financial insights and non-financial data, today’s approaches support businesses in measuring customer satisfaction, employee development and environmental effects that impact a company’s performance.

The Technological Imperative

Management accounting processes have been greatly changed because of the integration of digital technologies. Thanks to AI, big data and improved business intelligence, accountants can concentrate on giving advice and interpreting data instead of dealing with routine jobs. It is clear in the literature that accounting information systems (AIS) and real-time dashboards improve the potential for making forecasts, modelling strategies and performing what-if analysis. For this reason, data analysis is often used to predict what will happen and guide choices, allowing the company to be ready for coming changes and respond promptly.

Yet, to gain benefits from digital transformation, accountants should be familiar with the necessary know-how. It is evident from the findings that skill shortages remain a major issue for many organizations, mainly in fields such as data interpretation, integrating systems and modelling. The lack of these skills really stands in the way of making full use of technology in strategic accounting.

Changing Competency Requirements

Changing expectations in the field have caused management accountants’ job responsibilities to be reshaped. While technical accounting knowledge is necessary, other skills such as data literacy, strategic thinking and teamwork are now becoming more important. Strategic advisory, helping with innovation and guiding changes are some of the newer roles for HR. Nowadays, management accountants are expected to join forces with other teams and help form important business strategies with fact-based insights.

Because of this new aspect, training programmes and corporate culture should be adapted accordingly. Firms should continually train their employees to improve these additional skills. Besides, for management accounting to be positioned strategically, companies must address internal issues and reassess the finance function as a vital part of their strategy.

Integration Challenges and Organizational Readiness

While it is clear that using management accounting in strategy helps, there are still difficulties getting it implemented. Failure to transition over legacy systems, having scattered data storage and sticking to the same ways of doing things may block modernization of accounting. The cultural aspects within an organization are significant in supporting or standing against this change. Those who cling to tradition or give top priority to quick results might face difficulties with using BSC or ABC.

In addition, although IBM, Apple and Unilever have adopted useful strategic management accounting methods, it is not certain if they can be applied to small and medium-sized enterprises or companies in countries that are still developing. Having fewer resources, not having the latest technologies and having unique strategies could change the outcome of adoption.

Global Variability in Strategic Management Accounting Adoption

In different economic settings, the results and use of strategic management accounting (SMA) are not the same. Because better technology, skilled staff, and improved organizations exist in developed countries, it is easier for them to use ABC, BSC, and real-time analytics. Besides, many developing nations face difficulties such as not having enough advanced technology or data analysts and being generally unprepared. Because of this difference, it becomes difficult to expand and perform well with strategic accounting projects. When seen in comparison, Unilever or IBM can easily include real-time dashboards into their strategies, while SMEs in developing countries may stick to cost accounting approaches. It is very important to be aware of this gap so that management accounting methods are fit for each economic environment.

Sustainability and Long-Term Orientation

Many studies now support the idea that management accounting boosts sustainability. Environmental and social details have been included in ABC and value chain analysis, helping to consider more factors while making decisions. With this trend, many now acknowledge that evaluating a company’s long-term results includes more than just finances. Therefore, management accountants are taking part in assessing ESG-related measures and reporting them, making sure corporate strategies remain in line with sustainable goals.

CONCLUSION

It is clear from the academic literature and from business practice that the role of management accounting has changed from acting simply on past records to guiding the future of the organization. The reasons for this evolution are more complex companies, technological progress and the requirement to make fast decisions based on data. Management accountants now help with strategy, new ideas and increasing value in addition to their previous duties in financial reporting.

When ABC, BSC and advanced analytics are used, management accounting provides greater value to the company’s strategy. They guide firms to coordinate their operations with their long-term targets, measure and improve their progress and choose decisions that support the business for the long run. Besides, using digital technologies such as AI, business intelligence systems and predictive analytics has changed the skills that today’s accountants are expected to possess.

Nonetheless, as management accounting’s role in strategy is becoming clearer, it is still difficult to successfully apply it due to technological changes, skills shortages and problems within organizations. The results make it clear that accounting should change so that management accountants are seen both as those in charge of finances and as important partners in business.

RECOMMENDATIONS

Updating and sharpening the skills of management accountants should be a main goal for organizations today. It is important to provide these people with knowledge in data analysis, working with technology and strategic communication. As a result, they are able to step out of just accounting work and deliver data-based insights, join forces with other teams and add lasting value.

If Activity-Based Costing (ABC) and the Balanced Scorecard (BSC) are used regularly, managing a strategy becomes much more effective. They make it easier for companies to plan well, accurately assess their results and use their resources wisely. When successfully implemented into regular processes, they guarantee that day-to-day financial activities help guide the company’s most important plans.

Businesses need to use real-time dashboards, rolling forecasts and predictive analytics to handle changes in the marketplace. Such tools make it possible to handle analysis promptly, choose options ahead of time and get correct forecasts. Looking past old data and boring reports, management accountants aid leaders in foreseeing upcoming trends, changing strategies appropriately and being ready for any new opportunities or risks.

When finance teams take part in leadership and management, the organization can make better choices everywhere. It is important for finance professionals to join forces with other teams to guarantee that financial knowledge is present in the heart of business actions. This way of working brings unity among senior leaders, offers more accountability and allows management accounting to support the success of the business.

Management accounting can only be viewed as strategic and future-oriented if there is a transformation in the company’s culture. It means acknowledging and promoting the advantages offered by accountants through analysis, understanding and guidance. By looking at things differently, organizations can use management accountants to help them become innovators, improve their efficiency and keep growing.

Limitations of the Study

Most of the information in this study comes from reviews and reports found in literature, professional papers and case studies. For this reason, management education fails to pick up insights from people in the field or ways organizations actually work. Also, even though the study looks at large, well-known firms, its conclusions may not apply as well to small firms that are short on resources, mainly in developing countries. Since numbers and data are not used, it becomes difficult to verify the trends scientifically. Since advancements in technology are fast, at times, the practices or technologies we go over could be made obsolete by more recent developments.

Future Research Directions

Researchers should look into how different sectors and regions use strategic management accounting frameworks through surveys and interviews in the future. Looking into the influence of AI and automation on accounting processes, decisions and job roles in organizations everywhere. Examining differences between traditional and technology-driven companies could give hints into the different ways and problems they face with strategic accounting transformation.

Using ESG Metrics when Managing Financial Information. It would be helpful to look further into how accountants managing resources can make sure ESG takes its place in strategies like the BSC and ABC frameworks. Working on competency frameworks or assessment systems can cheque if accounting professionals are capable of handling important jobs in the new digital world.

REFERENCES

1. Kaplan, R. (1984). The evolution of management accounting., 586-621. https://doi.org/10.1007/978-1-4899-7138-8_27
2. Arkhipova, D., Montemari, M., Mio, C., & Marasca, S. (2024). Digital technologies and the evolution of the management accounting profession: a grounded theory literature review. Meditari Accountancy Research. https://doi.org/10.1108/medar-07-2023-2097
3. Miroshnуchenko, O., Krukhmal, O., & Khvostenko, A. (2022). EVOLUTION OF MANAGEMENT ACCOUNTING: ESSENCE AND PRINCIPLES. Vìsnik Sumsʹkogo deržavnogo unìversitetu. https://doi.org/10.21272/1817-9215.2022.3-5
4. Quattrone, P. (2016). Management accounting goes digital: Will the move make it wiser?. Management Accounting Research, 31, 118-122. https://doi.org/10.1016/J.MAR.2016.01.003
5. Harnani, S. (2022). Examining the Evolution of Management Accounting: A Qualitative Review. Atestasi : Journal Ilmiah Akuntansi. https://doi.org/10.57178/atestasi.v5i2.786
6. Perren, L., & Grant, P. (2000). The Evolution of Management Accounting Routines in Small Businesses: A Social Construction Perspective. Management Accounting Research, 11, 391-411. https://doi.org/10.1006/MARE.2000.0141
7. Bauchadze, B. (2022). EVOLUTION OF ESSENCE OF MANAGEMENT ACCOUNTING. Economic Profile. https://doi.org/10.52244/ep.2022.23.04
8. Liang, C. (2004). The Evolution of Management Accounting and Beneficial Illustrations.
9. Kamal, S. (2015). Historical Evolution of Management Accounting.
10. Chenhall, R., & Moers, F. (2015). The role of innovation in the evolution of management accounting and its integration into management control. Accounting Organizations and Society, 47, 1-13. https://doi.org/10.1016/J.AOS.2015.10.002
11. Pasch, T. (2019). Strategy and innovation: the mediating role of management accountants and management accounting systems’ use. Journal of Management Control, 30, 213-246. https://doi.org/10.1007/s00187-019-00283-y
12. Hadid, W., & Al-Sayed, M. (2021). Management accountants and strategic management accounting: The role of organizational culture and information systems. Management Accounting Research. https://doi.org/10.1016/j.mar.2020.100725
13. Rieg, R. (2018). Tasks, interaction and role perception of management accountants: evidence from Germany. Journal of Management Control, 29, 183-220. https://doi.org/10.1007/S00187-018-0266-0
14. Heidmann, M., Schäffer, U., & Strahringer, S. (2008). Exploring the Role of Management Accounting Systems in Strategic Sensemaking. Information Systems Management, 25, 244 – 257. https://doi.org/10.1080/10580530802151194
15. Cuganesan, S., Dunford, R., & Palmer, I. (2012). Strategic management accounting and strategy practices within a public sector agency. Management Accounting Research, 23, 245-260. https://doi.org/10.1016/J.MAR.2012.09.001
16. Roslender, R., & Hart, S. (2003). In search of strategic management accounting: Theoretical and field study perspectives. Management Accounting Research, 14, 255-279. https://doi.org/10.1016/S1044-5005(03)00048-9
17. Yarema, Y. (2022). STRATEGIC ACCOUNTING IN THE ENTERPRISE MANAGEMENT SYSTEM. Black Sea Economic Studies. https://doi.org/10.32843/bses.74-35
18. Turner, M., Way, S., Hodari, D., & Witteman, W. (2017). Hotel property performance: the role of strategic management accounting. International Journal of Hospitality Management, 63, 33-43. https://doi.org/10.1016/J.IJHM.2017.02.001
19. , Y., & Tayles, M. (2009). On the emergence of strategic management accounting: An institutional perspective. Accounting and Business Research, 39, 473 – 495. https://doi.org/10.1080/00014788.2009.9663379
20. Yoshikuni, A., Dwivedi, R., Dultra-De-Lima, R., Parisi, C., & Oyadomari, J. (2023). Role of Emerging Technologies in Accounting Information Systems for Achieving Strategic Flexibility through Decision-Making Performance: An Exploratory Study Based on North American and South American Firms. Global Journal of Flexible Systems Management, 1-20. https://doi.org/10.1007/s40171-022-00334-9
21. Wu, P. (2021). Data mining and XBRL integration in management accounting information based on artificial intelligence. J. Intell. Fuzzy Syst., 40, 6755-6766. https://doi.org/10.3233/jifs-189509
22. Abdelhalim, A. (2023). How management accounting practices integrate with big data analytics and its impact on corporate sustainability. Journal of Financial Reporting and Accounting. https://doi.org/10.1108/jfra-01-2023-0053
23. Zhao, Y., Zhang, W., & Huang, R. (2022). Research on the Impact of Big Data Technology on Management Accounting. Proceedings of the 2022 5th International Conference on Data Storage and Data Engineering. https://doi.org/10.1145/3528114.3528119
24. Theodorakopoulos, L., Thanasas, G., & Halkiopoulos, C. (2024). Implications of Big Data in Accounting: Challenges and Opportunities. Emerging Science Journal. https://doi.org/10.28991/esj-2024-08-03-024
25. Shaleh, M. (2024). The Transformative Implications of Technology on Accounting Practices. Advances in Management & Financial Reporting. https://doi.org/10.60079/amfr.v2i2.278
26. Yaşar, Ş. (2024). INTEGRATION OF ARTIFICIAL INTELLIGENCE IN MANAGEMENT ACCOUNTING: A SWOT ANALYSIS. Journal of Business in The Digital Age. https://doi.org/10.46238/jobda.1474352
27. Ye, L. (2025). AI-Driven Forecasting in Management Accounting: Model Construction and Implementation for Strategic Decision Support. Proceedings of Business and Economic Studies. https://doi.org/10.26689/pbes.v8i1.9648
28. Kalkhouran, A., Rasid, S., Sofian, S., & Nedaei, B. (2015). A Conceptual Framework for Assessing the Use of Strategic Management Accounting in Small and Medium Enterprises. Global Business and Organizational Excellence, 35, 45-54. https://doi.org/10.1002/JOE.21644
29. Suarez, J. (2022). The Hallmarks of Strategic Management Accounting: seeking to support decision making processes. Journal of Business Management. https://doi.org/10.32025/jbm22007
30. Adamova, G., Khabib, M., & Teplyakova, M. (2020). The Problems with Information Support of Strategic Management. **, 33-41. https://doi.org/10.1007/978-3-030-44703-8_5
31. Yoshikuni, A., Dwivedi, R., Dultra-De-Lima, R., Parisi, C., & Oyadomari, J. (2023). Role of Emerging Technologies in Accounting Information Systems for Achieving Strategic Flexibility through Decision-Making Performance: An Exploratory Study Based on North American and South American Firms. Global Journal of Flexible Systems Management, 1-20. https://doi.org/10.1007/s40171-022-00334-9
32. Suarez, J., Ludviga, I., & Mavlutova, I. (2024). The Role of Strategic Management Accounting Techniques in the Improvement of A Company’s Financial Performance: The Case of low-cost Airlines. WSEAS TRANSACTIONS ON BUSINESS AND ECONOMICS. https://doi.org/10.37394/23207.2024.21.180
33. Malikov, V., Bila, Y., Petrukha, N., Andrieiev, A., & Bohatchyk, L. (2025). Management of Accounting in Strategic Decision-Making for Enterprises. Journal of Information Systems Engineering and Management. https://doi.org/10.52783/jisem.v10i9s.1135
34. Back-Hock, A. (1992). Towards strategic accounting in product management: Implementing a holistic approach in a data and methods base for managerial accounting. European Journal of Operational Research, 61, 98-105. https://doi.org/10.1016/0377-2217(92)90271-A
35. Pitcher, G. (2015). Management accounting in support of the strategic management process.
36. Kuzminskyi, Y., Kryshtopa, I., Voronova, M., Kuzminskyi, B., Hushko, S., & Shaikan, A. (2020). The Usage of Technology of the AB-Costing and the Balanced Scorecard in Enterprise’s Business-Process Management. Proceedings of the III International Scientific Congress Society of Ambient Intelligence 2020 (ISC-SAI 2020). https://doi.org/10.2991/aebmr.k.200318.004
37. Kaplan, R. (1994). Management accounting (1984-1994): development of new practice and theory. Management Accounting Research, 5, 247-260. https://doi.org/10.1006/MARE.1994.1015
38. Shah, B., Sah, R., & Sah, K. (2024). Exploring the Role and Impact of Strategic Management Accounting Tools: A Comprehensive Literature Review. International Journal of Humanities, Education, and Social Sciences. https://doi.org/10.58578/ijhess.v2i3.3614
39. Maiga, A., & Jacobs, F. (2003). Balanced Scorecard, Activity-Based Costing and Company Performance: An Empirical Analysis. Journal of Managerial Issues, 15, 283.
40. Nazaripour, M., & Ravand, F. (2019). The Impact of Management Control Systems on Contemporary Management Accounting Practices in the Public Sector. **, 4, 39-50.
41. Ayedh, A., & Eddine, C. (2014). The Impact of Advance Management Accounting Techniques on Performance: The Case of Malaysia. The Middle-East Journal of Business, 10, 3-13. https://doi.org/10.5742/MEJB.2015.92633
42. Dekker, H. (2003). Value Chain Analysis in Interfirm Relationships: A Field Study. Management Accounting Research, 14, 1-23. https://doi.org/10.1016/S1044-5005(02)00067-7
43. Patrick, E., Blessing, I., & Gloria, E. (2015). The Use of Activity Based Costing and Balance Score Card for Strategic Performance Measurement: Perception of Chartered Accountants in Anambra State, Nigeria.
44. Nielsen, S. (2022). Business analytics: an example of integration of TD-ABC and the balanced scorecard. International Journal of Productivity and Performance Management. https://doi.org/10.1108/ijppm-05-2020-0244
45. Liu, S., & Wu, J. (2016). Analysis on the Combination of Activity-Based Costing and Balanced Scorecard. https://doi.org/10.2991/icemse-16.2016.91