Data analytics by management accountants

Abstract

Purpose This paper aims to understand how the tasks of management accountants (MA) are affected by data analytics (DA). Design/methodology/approach A qualitative methodology was deemed most appropriate given the exploratory nature of the research questions (RQ). In total, 10 open-ended interview questions were used to gather the evidence. The case study design was inductive, yielding rich data from 29 respondents representing 20 different organizations. Findings Answers were provided to three interrelated RQs about the use of DA by MA, namely, what are their responsibilities? How does this work support inference, prediction and assurance? And how can they ensure insights from DA can be turned into decisions that add value? The findings also indicate that MA have not taken charge of the data analytic opportunities and at present, their activities remain largely focused on descriptive and financial data analysis rather than more complex activities using external data, operational data and modeling. Research limitations/implications The limitation of this research is that it is based on a relatively small, geographically restricted sample (20 organizations in south-central Canada) as well by interviews that were only 60 min in duration. Practical implications Provides a base for the existing practice of management accounting with DA. Social implications Explains the social relationship between DA and management accounting. Originality/value Documented and explained the extent of actual DA use by MA.

Big data and decision quality: the role of management accountants’ data analytics skills

“…We focus on management accountants’ skills because they are generally known to play an important role as information providers to top managers in the decision-making process (Ahrens, 1997; Burns et al , 2013; Erhart et al , 2017; Hiller et al , 2014; Ndemewah et al , 2019; Spraakman et al , 2020; ten Rouwelaar et al , 2018; Wolf et al , 2020; Youssef and Mahama, 2021). This role is in line with common definitions of management accounting, which see this function as “partnering in management decision making, devising planning and performance management systems, and providing expertise in financial reporting and control to assist management in the formulation and implementation of an organization’s strategy” (Institute of Management Accountants, 2008, p. 1).…”

“…Recent studies on the effects of big data on management accountants have suggested that technological developments around big data may have a decisive influence on the role of management accountants, suggesting that such individuals will have to acquire new data-related skills to maintain their standing as the primary information providers to management (Andreassen, 2020; Bhatta and Hiebl, 2022; Kokina et al , 2021; Lawson, 2019; Oesterreich and Teuteberg, 2019; Spraakman et al , 2020; Schnegg and Möller, 2022; Szukits, 2022; Wadan et al , 2019; Wolf et al , 2020; Youssef and Mahama, 2021). In particular, big data and the associated new technologies are expected to lead to an elimination of repetitive tasks, which allows management accountants to spend less time on data collection and more time on data evaluation, data analysis and data interpretation (Andreassen, 2020; Lawson, 2019).…”

“…In particular, big data and the associated new technologies are expected to lead to an elimination of repetitive tasks, which allows management accountants to spend less time on data collection and more time on data evaluation, data analysis and data interpretation (Andreassen, 2020; Lawson, 2019). However, to excel in data analysis, data analytics skills such as IT skills and statistical knowledge are requireed (Andreassen, 2020; Bhatta and Hiebl, 2022; Kokina et al , 2021; Oesterreich and Teuteberg, 2019; Spraakman et al , 2020; Wadan et al , 2019). Pinpointing this development, Wadan et al (2019, p. 5817) emphasize that “there will be a shift from traditional analysis towards statistical analysis methods.” At the same time, Spraakman et al (2020) recently reported findings indicating that as of yet, this shift has not taken place (Coyne et al , 2018).…”

“…In this paper, we address this void and focus on the role of management accountants' skills in creating high-quality decisions with the help of big data. We do so because providing information for decision-making is a central task of management accountants (Ahrens, 1997;Burns et al, 2013;Erhart et al, 2017;Spraakman et al, 2020;ten Rouwelaar et al, 2018). Indeed, recent research has suggested that the increased usage of big data can IJAIM 31,1 change the role and thus the range of tasks and the requirements for the skillsets of management accountants (Andreassen, 2020;Kokina et al, 2021;Lawson, 2019;Oesterreich and Teuteberg, 2019;Schnegg and Möller, 2022;Szukits, 2022;Wadan et al, 2019;Wolf et al, 2020;Youssef and Mahama, 2021).…”

Management accounting and the concepts of exploratory data analysis and unsupervised machine learning: a literature study and future directions

“…A survey based on 20 companies from 2021 also indicates that management accountants have not taken charge of the data analytic opportunities. The companies surveyed remain largely focused on descriptive and financial data analysis rather than on more complex activities using external data, operational data and modelling (Spraakman et al, 2021). However, other researchers within the MA field are also very sceptical about the digital revolution affecting MA and decision-making (Quattrone, 2016;Vasileva, 2020), whereas others (Bhimani, 2018(Bhimani, , 2020Kaplan, 2008;Schneider et al, 2015;Warren et al, 2015) argued years ago that MA must take into account the new options and possibilities given by AI/ML.…”