Management accounting in the digital age: integrating analytics and information systems

Abstract

Abstract: The need to effectively manage large volumes of data and information requires a transition from traditional management accounting methods to more modern ones, in particular, using analytics and information (electronic) systems. New technologies provide high-quality, reliable, and efficient data transmission, storage, and processing, reducing labour costs for accounting and management personnel, and expanding the possibilities of forecasting financial and economic activity. At the same time, the integration of these systems creates new problems, for which the search for solutions is a relevant and timely direction of research. The purpose of this work was to analyse the development of management accounting in the context of integrating analytics and information systems within the framework of digital transformation. The work used methods of system analysis, comparison, synthesis, statistical analysis, and graphical methods. Results. A comprehensive analysis of management accounting was conducted as a process of identification, measurement, accumulation, analysis, preparation, interpretation and transmission of financial information used by management to plan, evaluate and control the activities of the organisation, as well as ensuring the proper use of resources and management responsibility. The functional tasks of the accounting information system (AIS) and its ability to generate information for informed management decisions, as well as maintain control over the organisation's resources and operations, were examined. Particular attention was paid to the integration of management accounting with ERP systems, specifically the stages of implementing automated management accounting systems that facilitate the consolidation of information flows from all departments into a single database and simplify data exchange. The potential of business analytics and big data in the field of management accounting was studied. In particular, the possibilities of identifying trends, analysing relationships, predicting performance, automating calculations, assessing risks, and supporting decision-making in real time were considered. The application of various types of analytical methods—descriptive, diagnostic, predictive, and prescriptive—to increase the effectiveness of management decisions and optimise resources was considered. The study also analyzed the key effects of automation of management accounting, including improving the quality, reliability, efficiency and efficiency of data transmission, storage and processing, reducing the cost of accounting and management personnel, accelerating the receipt of information for decision-making, expanding the possibilities of forecasting financial and economic activities, forming a balance sheet, financial plan, budget and cash flow control. Conclusions. This study identified key issues related to the integration of ERP systems, business analytics, and big data, specifically the complexity of combining different data sources, the duplication and inconsistency of information, the high volume and variability of data, as well as the risks of data leakage and incorrect information use. Ways to solve them were proposed through standardisation of data entry, centralised platforms or data warehouses, the use of business analytics and machine learning algorithms, ensuring the protection of confidential information and training of personnel. Keywords: management accounting, analytics, big data, ERP systems, automation.