Examining Success Criteria in the Integration of Financial and Managerial Accounting Systems in Organizations
Keywords:
Financial accounting systems, managerial accounting, Random Forest Regressor, system integrationAbstract
Objective: This study aims to prioritize the success criteria in integrating managerial and financial accounting systems within organizations. Methodology: To conduct this research, the relevant criteria were first identified through a literature review. The research instrument was a 12-item questionnaire designed using a five-point Likert scale based on the identified criteria. To ensure the questionnaire's validity, feedback was obtained from 10 expert specialists. The questionnaire's reliability was assessed using Cronbach's alpha. The data were analyzed using the Random Forest Regressor algorithm in the Python environment. Initially, the data were divided into training (80%) and testing (20%) sets. The algorithm was then executed on the training data, and the importance of each criterion was calculated using the "feature importance" attribute. To evaluate the results, a Receiver Operating Characteristic (ROC) curve was plotted. Findings: According to the findings, the criterion of "accuracy of financial reports" had the highest impact on the success of system integration, with a weight of 0.245. This was followed by "financial transparency" at 0.220 and "alignment with organizational objectives" at 0.180. The criteria of "ease of use" and "speed of information delivery" were also significantly important, with weights of 0.145 and 0.095, respectively. The least significant criteria were "technological integration capability" and "impact on strategic decision-making," which influenced the success of financial and managerial accounting system integration by 0.045 and 0.035, respectively. Conclusion: The results identified 10 key factors influencing the success of integrating accounting and managerial systems in organizations. Aligning accounting systems with organizational objectives is essential for improving decision-making, enhancing operational efficiency, strengthening accountability, and facilitating change management.
Downloads
References
Abu Afifa, M., Nguyen, N. M., & Bui, D. V. (2024). Management accounting practices going sustainable: the move toward sustainable risk management in ASEAN developing economies. Competitiveness Review: An International Business Journal, ahead-of-print. https://doi.org/10.1108/CR-03-2024-0056
Adebayo, A. O., & Lamidi, W. A. (2021). Accounting And Information Technology Alignment: The Influence On Organisational Performance. Business Excellence and Management, 11(1), 36-48. https://doi.org/10.24818/beman/2021.11.1-03
Ajibola, H. O., Nurudeen, A. O., & Balogun, S. B. (2024). Cost control and profitability of listed manufacturing companies in Nigeria. Fuoye Journal of Management Science, 2(1). https://fjms.fuoye.edu.ng/index.php/public_html/article/download/32/24
Choe, J. M. (2017). The strategic alignment of management accounting information systems, and organizational performance. Global Business & Finance Review (GBFR), 22(4), 50-64. https://doi.org/10.17549/gbfr.2017.22.4.50
Dai, M., & Liang, K. (2023). Research on the Integration of Big Data Financial Information and Management Accounting. In 2022 International Conference on Artificial Intelligence, Internet and Digital Economy (ICAID 2023),
Drury, C. M. (2013). Management and cost accounting. Springer. https://books.google.com/books?hl=en&lr=&id=l2gFCAAAQBAJ&oi=fnd&pg=PA2&dq=Management+and+Cost+Accounting&ots=EvzhAwiBoY&sig=tsnMbAIJiy53HoWyBCgCQ3XLnUY#v=onepage&q=Management%20and%20Cost%20Accounting&f=false
Gichaaga, P. M. (2014). Effects of management accounting practices on financial performance of manufacturing companies in Kenya University of Nairobi]. https://erepository.uonbi.ac.ke/handle/11295/74727
Ismail, N. A., & King, M. (2006). Management accounting systems and its impact on performance. Management & Accounting. https://www.researchgate.net/publication/259297609_The_Alignment_of_Management_Accounting_Systems_and_Its_Impact_on_Performance
Johnson, H. T. (1987). Relevance lost: the rise and fall of management accounting. Harvard Business School Press Boston. https://www.cambridge.org/core/journals/business-history-review/article/abs/relevance-lost-the-rise-and-fall-of-management-accounting-by-johnsonh-thomas-and-kaplanrobert-s-boston-harvard-business-school-press-1987-xv-269-pp-notes-and-index-2495/9949E28E373CC8F0CF6D0CCB5AC7D23E
Kamal, S. (2015). Historical evolution of management accounting. The Cost and Management, 43(4), 12-19. http://www.icmab.org.bd/wp-content/uploads/2019/05/2.Historical-Evolution-of-Management.pdf
Khasanah, U. (2022). Does accounting information system on financial report transparency: a literature review. Journal of Accounting and Finance Management, 3(1), 21-27. https://doi.org/10.38035/jafm.v3i1.68
Kimani, B. (2024). Influence of Accounting Information Systems (AIS) on Financial Reporting Accuracy. American Journal of Accounting, 6(1), 37-47. https://doi.org/10.47672/ajacc.1787
Legaspi, J. L. (2014). The impact of management accounting literature to practice: a study of management accounting concepts in the Philippines industries. International Journal of Academic Research in Accounting, Finance and Management Sciences, 4(2), 343-361. https://econpapers.repec.org/article/hurijaraf/v_3a4_3ay_3a2014_3ai_3a2_3ap_3a343-361.htm
Otley, D. T. (1980). The contingency theory of management accounting: achievement and prognosis. Accounting, Organizations and Society, 5(4), 413-428. https://doi.org/10.1016/0361-3682(80)90040-9
Prakash, C. S., Sultana, A., Mehta, P., Kumar, H. S., Ali Defalla, B. M., Divakaran, P., & Dean, V. R. R. (2024). Harmony in numbers: unifying management and accounting for financial success. Environmental & Social Management Journal/Revista de Gestão Social e Ambiental, 18(9). https://doi.org/10.24857/rgsa.v18n9-053
Rakhshani, M., Zeratgari, R., Pifeh, A., & Payan, A. (2021). Investigating the effect of using accounting information systems on management performance. Public Management Researches, 14(52), 169-198. https://jmr.usb.ac.ir/article_6412.html
Shahzadi, S., Khan, R., Toor, M., & ul Haq, A. (2018). Impact of external and internal factors on management accounting practices: a study of Pakistan. Asian Journal of Accounting Research, 3(2), 211-223. https://doi.org/10.1108/AJAR-08-2018-0023
Shotter, M. (1999). The origin and development of management accounting. Meditari Accountancy Research, 7, 209-235. https://www.semanticscholar.org/paper/The-origin-and-development-of-management-accounting-Shotter/fda5511f4cbd11e4c67d138e11486ccda7976e74
Siska, L. (2015). The concept of management control system and its relation to performance measurement. Procedia Economics and Finance, 25, 141-147. https://doi.org/10.1016/S2212-5671(15)00722-4
Sun, H. (2023). Construction of integration path of management accounting and financial accounting based on big data analysis. Optik, 272, 170321. https://doi.org/10.1016/j.ijleo.2022.170321
Weißenberger, B. E., & Angelkort, H. (2011). Integration of financial and management accounting systems: The mediating influence of a consistent financial language on controllership effectiveness. Management Accounting Research, 22(3), 160-180. https://doi.org/10.1016/j.mar.2011.03.003
Yazdan Panah, M., & Ahmadi Mousavi, S. M. (2023). Legal Supervision Styles for Capital Market Health. Dynamic Management and Business Analysis, 2(3), 196-207. https://doi.org/10.22034/dmbaj.2024.2037208.1063
Zimmerman, J. L. (2011). Accounting for decision making and control. McGraw-Hill. https://doi.org/10.2308/iace.2011.26.1.258
Downloads
Published
Submitted
Revised
Accepted
Issue
Section
License
Copyright (c) 2025 عارفه پورسیف الدینی جرجافکی (نویسنده)
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
