Limitations Management Accounting

Some may see the lack of regulation as a benefit of management accounting while others may see it as a limitation as there are different processes and procedures around the world. Having a lack of regulation reduces bureaucracy and gives managers more power to choose what rules and regulations that best suit the organisation. On the other hand, it reduces the ability to compare and contrast between different companies and possibly periods of the same organisation.

A problem rather than a limitation is that operational managers may not see eye to eye with management accountants. They may feel that the accountants are controlling and are higher up the ladder rather than working together on the same playing field, “it creates carrots and sticks

Based on history, change is inevitable. Management accountants must evolve by gaining a greater understanding of the business; the flow of inputs and outputs. This alleged change will be based on a new economy, a new organisation and new accounting. The new economy will be influenced greatly by innovation and electronic activities which may outsmart people in time. This will impact the way in which we do business, the role of information and the way we communicate. The new organisation will see the evolution of theories. Task design, organisation design as well as factors that impact profit drivers may be reshaped in the coming years. New accounting will be built on the old means and models but will be extended due to new frameworks and standards. For the foreseeable future, he data behind these factors and organisations as a whole will be influenced by technology due to the digital age that we are currently living in. (Bhimani,

I have found that the benefits outweigh the limitations and that the ability of management accounting to change is engrained in its history. The ability to evolve and grow as a management accountant in line with the factors influencing the environment is a force to be reckoned with. The most underlying uncertainty is the possibility that the role of management accounting will diminish as financial accounting improves. In the future there is also a possibility of combining the two thus, their relationship may be tested. However, I feel there will always be a need for management accountants but their role will alter over time. Management has survived many changes in the past so I think it will be able to evolve in the future and deal with new issues. The key to success is how well an organisation will incorporate these