Impact of Innovative Accounting on Financial Management Free-Sample

Question: Discuss the Impact of Innovative Accounting on Financial Management and Business Organization. Answer: Introduction The topic is about the new trends in accounting and management of finances in an organization. Becoming a professional financial manager or an accountant in the future is the main career for a student of Master of Professional accounting. The report will include finding the trends in technologies to improve the financial plan in an organization. The innovative accounting is introduced in this report and the impact of innovative accounting in financial management in an organization is analyzed. The report will include the background, aim, literature review, methodology and discussions. And lastly the conclusion will be explored with the help of hypothesis (PWC, 2010). Problem statement Nowadays, any organization wants to grow and to earn maximum profits in the market. So, to earn the profits and growth an organization should incorporate different techniques and technologies into the financial management of accounts work. The new technology will help in smooth working in terms of organizing data in an organization. Easy and secured access to the data help in proper and smooth working. In spite of finding data manually will take time and engage many persons. So, to avoid this a database is maintained to access the information regarding the sales, the demand and supply in the cloud. Therefore, due to the proper management of all this financial data will help in managing data related to shareholders, regulatory agencies, creditors, tax authorities, demand and supply etc. Therefore, proper management of data helps in faster decision making which will lead to the growth of the organization, Organizations growth leads to the profit of the organization. This database will help in making decision faster in terms of finances, investment decisions and cash decisions. Also, the information or data are error free. So, less chances of mistakes are there. The quick decision leads to faster working which in a way leads to customer satisfaction. If the customers are satisfied the profits can be made by the organization (Samuel, 2013). Research aim and question The aim of this project report is to investigate the impact of innovative accounting on financial management and business organization. Research question The following questions are being developed to reach the aim. Analysis of the impact of innovative accounting in financial management? Examining how it impacts the decision making process? Investigating how the innovative accounting benefits the information system? How innovative accounting will help in the organizations growth? Examining how innovative accounting will earn better profits for an organization? Literature Review Innovation accounting and financial management The introduction of the new technologies adds value to the work. Similarly the introduction of accounting technology has affected the structure of the organization. The researcher says that the technological changes in the accounting will bring short term instability, but long term growth of the organization. The innovation in the technology creates the opportunity to earn profits through the innovation. Also the researchers say that it increases the margin of the profits in the long term. Some researchers say that the impact of innovation in accounting system is neutral. There is no positive or negative effect of the innovation (Mattison Nasi, 2004). Innovation in accounting system helps in executing the information in a proper manner. The researchers say that the information will be executed with speed and accuracy that will enhance the efficient organization of the resources. It will help in the formulation of strategies related to financial matters quickly and faster decision making. Also, the relevant information is accessed with the help of the innovative accounting system as saying by the researcher. The technological advancement, an efficient accounting system which in turn results in competitiveness. The researcher says that due to accounting innovation the productivity and growth of the company is enhanced (Gichaaga, 2013). The innovation also helps in controlling the information. The accounting system collects the data and convert it into proper information. The relevant data help in making the decision related to finances faster. Therefore, a valuable data can be accessed with the help of an innovative accounting system which help in right decision making. Faster decision making leads to the growth of the organization (Times, 2017). According to the researcher the cloud based accounting system helps in tracking the financial transactions, tracking of internal and external data reporting system and all the financial statements related to the organization. Therefore, this cloud based system helps the financial manager to make any financial decision related to the organization with the help of current financial status (Shoommuangpak, 2011). Decision making and growth of the organization Decision making is enhanced by relevant information obtained. The data are collected and is converted into information. The management of the data is done with the help of accounting management. The new innovations and technology make it easier to collect the data at one source according to the researcher. They say that the access to the information at one source helps in faster decision making. According to the researcher the accounting system is depending on the three important points that are business language which is basically the source of data related to finances, decision making important data and integrated entity. Therefore, for faster decision making, all the elements should be taken forward. This helps in analyzing the clear view on financial status by the manager according to the researcher (Liguori Steccolini, 2014). With the help of this the obstacles in the financial management can be removed and this will help in the growth of the organization. According to researcher this cloud based system of accounting is based on the reporting system in real time. The data on the system can be uploaded at cloud. And the accounting system connected to it also gets updated. Also, it resolves the issue related to multi currency in various organizations. The researcher says that it makes easy mobility of the capital at international levels. It helps in the smooth cash flow. During the manual work the problems like linkages and coordination arises which seems like hurdles in the cash flow. The innovative accounting solves the problem of the linkages by itself, connecting to the data that is internal or external. This will enhance the efficiency of the organization. This helps in making the quick financial decisions (Kalkan Arman, 2014). Innovative accounting and profits to an organization Innovation in accounting systems helps in the better understanding of the financial systems. The financial manager can get data related to the internal and external finances, financial transactions, and other finances related transactions. So, it will help in making the financial related decision faster according to researchers. As per a researcher saying the obstacles in finances minimizes the growth of the organization. This will in turn speed up the production process. Customer satisfaction is related to quality product delivery and services in time which is related to the accounts system indirectly. Therefore, satisfied customers and good feedback in the market are interrelated. The organization growth is provided by this feedback leading to the profits to the organization (Lakew Rao, 2012). Therefore, from the above studies the following hypothesis are generated. These are as follows: H0: Analysis of accounting innovation has a positive effect on business organization. H1: Accounting innovation is a long term gaining process for an organization. Methodology Data collection The main aim of the report is to examine the impacts of innovative accounting, how innovative accounting helps any business organization in financial management. The study is done with the help of written documents available publicly. Also, the reports that are published annually and documents are studies to become more prcised. The reports related to various banks and companies are taken into account during the study. The main respondents in the study are accountants in Thai-listed firm. The 50 accountants and financial managers are taken from the database of Thailand stock exchange. The responses of these accountants and managers are taken with the help of a questionnaire. The response is collected with the help of a secured mail. The study concerns over to detect a problem with non response error. Data analysis Data is analyzed with the help of annual reports in financial management with or without innovative accounting. Researchers say that this kind of method helps in determining the facts related to the research which has to be reliable and it is important to analyze it. This data is analyzed with the survey conducted and therefore the impact of innovative accounting is analyzed. Logical research has been made so that facts could be taken up. Then the raw data is aligned to give it a form of information Innovative accounting Innovative accounting consists of new ideas in incorporating computer assisted accounting in the financial systems. It comprises of new methods by which the information related to financial matters is processed in a particular format. It is the efficient way of doing the accounting work with the help of creating the cloud of data and updating it time to time. Obstacles like multi currency issue can also be solved with this accounting system. Linkages between different data help in managing financial transaction with accuracy. It also provides security to the financial system which is always given to a reliable source and also able to provide error free accounting practices with accuracy and reliability for the financial system (Korir, 2010). Financial management, growth and profits The analysis is done over 50 companies which helped us in providing the data related to the financial management in an organization. It comes up with that if the innovative accounting system is applied in a company, the decision making is done faster. The financial decisions related to the analysis is done very quickly as compared with the organization who have not implemented the new accounting techniques. Also, due to the error free work done by the same organization at one time the efficiency is also increased. Therefore, to identify the growth and profits earned by the organization the analysis over 50 Thai companies have been made which uses innovative accounting and those who do not use the accounting cloud system. The performance of these companies is analyzed and the companies with technology in accounting were seen at higher profits and improved growth, whereas the companies without the technology were of mixed results. Some were growing and some were at the same level. Therefore, the figures obtained by the analysis helped in computing the growth rates (Janotta, 2015). Findings and analysis The study id done to examine the impact of innovative accounting on the financial performance of the business organization. The data were collected with the help of the questionnaires. The findings of the study are presented based on the objectives of the study. Response rate There were 50 questionnaires distributed, 30 were filled properly and was sent back through the mail. The response rate was about 60%. According to the researcher the response rate of more than 50% is adequate. Some researchers say that response rate of 50% is acceptable, whereas the 60% is good. Therefore, based on these results by the known academicians, the response was considered adequate. The conclusions and the study can be drawn from the report. Response Frequency Percent Returned 30 60% Unreturned 20 40% Total 50 100% Response Rate Results and findings Decision making of the organization due to innovative accounting Innovative accounting consists of accounting with computer assisted programs. These programs are made for making accounting faster. Basically, all the data related to finances are saved in the cloud. The linkage between the data in the cloud and the computer assisted program is done. This helps in proper management of data whenever required. When the data is required, then it can be taken directly without any search. Also, the data in the cloud is updated whenever it is necessary. Therefore, the financial manager can get a record of all the finance related activities very fast and he will know about any internal and external financial transaction. This will help the manager to make any decision related to the finance very fast due to easy availability of the data and accuracy of the data. It helps in the smoothening of the finance related work because of error less work. So, the decision making power is enhanced by innovative accounting, which is also provided with the help of survey . 85% of the persons replied from the questionnaire that the decision making has become easier with the help of innovative accounting. 10% of the persons did not reply and the rest were neutral. Statement Agree Disagree Neutral Decision making becomes easier 85% 10% 5% Research Findings Growth of organization due to innovative accounting Due to innovative accounting the evaluation of the cost of capital, mobility of the capital, incentives in the business, tax system, the flow of cash, net income and many others become easy. Also multi currency transfers also become easy with the help of innovative accounting. This helps in making quick decisions related to finances. The demand and supply is maintained and all the production work depends on finances (Wachira, 2013). The survey has reported that 65% accountants find that the growth occurs due to the innovative accounting. But, 25% said that the no growth is observed. 10% were neutral in the same case. If the financial matters are dealt with fast results and accuracy the growth of the organization is the result. The cloud based financial system helps in reports making, tax generation, budget related activities and auditing faster. This leads to the growth of the organization as proved in the survey (Liabotis, 2007). The survey has reported that: Statement Agree Disagree Neutral Growth of the organization 65% 25% 10% Research findings Profit to the organization due to innovative accounting Growth of the organization leads to the increase in the production levels as well as the expenditure of the business. This leads to the profits to the company. The expenditure of the business improves the brand name of the organization. 55% have reported the profits made by the organization, whereas 40% have said that no profits were made (Kalkan Arman, 2014). Error free work due to innovative accounting The computer assisted work linked with the cloud data related to finances. The data in the cloud is updated automatically. Therefore, the updates help in updating the new information automatically. Therefore, the possibility of error becomes very less resulting in speedy work. 88% have said that error free work has been done 2% disagree, whereas 10% were neutral. Statement Agree Disagree Neutral Profit to the organization 55% 40% 5% Error free work 88% 2% 10% Research findings Discussions In this section comparison of the literature review and the findings is done. The main purpose of the report was to investigate the impacts of innovative accounting, enhancement in decision making power, growth and profits made by an organization due to innovative accounting in the financial system. The survey has been made on the 50 accountants and financial managers of Thai listed firm. Questionnaire related to decision making, growth and profits in the organization are compared (Samuel, 2013). H0: Analysis of accounting innovation has a positive effect on business organization. The findings show that the innovative accounting has effects like decision making faster, growth, profits to the organization. In the literature review some researcher said that accounting innovation does not affect the organization, whereas some said that it has a negative effect on the business organization. The findings proved that the effects of the innovative accounting were good in every aspect. According to the study on Thai listed firm the decision making was faster, according to 85% of the accountants. Whereas, the growth was positive said by 65%. Also, profits survey said it was with 55% organizations. Therefore, the data are adequate to prove the findings that the accounting innovation in financial management has the positive effect on the business organization (Yadav, 2013). H1: Accounting innovation is a long term gaining process for an organization. The findings confirm that accounting innovation has long term gaining. As, immediate results are seen in some aspects, but the total results will be achieved over time. In the literature review, it is mentioned that in some ways the accounting innovation has immediate effects, but many researchers pointed towards the long term results. This also concluded the positive result of the innovative accounting that is discussed above. This finding is consistent with the growth of the company. It takes time for any organization to grow (Giampietro, Aspinall, Bukkens, Benalcazar, 2013). It is not a fast or immediate process. Also the profits seen by the organization is a long term process. Therefore, these findings help in concluding that innovative accounting is a long term gaining process. Accounting is a long term process as it took time to incorporate the accounting innovation into the business organization. When the accounting system is incorporated, time is taken by the organization to maintain data on the cloud. Therefore, from the findings the data and information are accessed quickly, but the gain to the organization will be seen over time. According to the findings the database will be maintained and will help the organization in future endeavors. Therefore, it is a long term gaining process (Abdel, 2011). Conclusion Based on the findings and the main objectives the following conclusions are made. The innovative accounting and strategic tool work on reviewing the organizational processes for the small term and achievement in the long term of the strategic plan. The accounting system is a tool that is used for improving the financial management and controlling of the financial operation. If innovative accounting is successfully implemented in the financial management system, it will help in carrying out the planning, controlling, evaluation, strategy of the company, and business processes (ACCA, 2016). Innovation in the accounting technology is a key driver for any business organization in financial management. This kind of the findings is familiar as it has been supported by many researchers and hence the innovation accounting is highlighted as a driving force for any business organization in case of financial management. Innovative accounting is proved as a faster way to a financial manager to make decisions related to the finances like tax assistance, audits, capital transactions, external and internal management of capital etc. If the financial system of any organization is quick, the work or the production or services provided to the customers will also be quick. This helps in customer satisfaction. Customers are the main part of any business organization. So, happy customer helps in making good reputation of the organization which leads to the growth of the organization (CGMA, 2013). Also, the profitability of an organization is increased due to the implementation of new accounting system. This has been also proved in the above findings. The growth of the organization leads to the profits as the profits are made by making financial stability and financial gains. Good accounting system helps in faster calculations for analyzing the financial gains. Also, strategies can be planned accordingly if there will be any losses. Strategic management and priorities are the outcome of the innovation in accounting system. Therefore, it can be concluded that the organization business is improved with the help of innovative accounting in financial management (Forsaith, Tilt, Xydias-Lobo, 2002). Though the process of achievement is a long term process. The growth and the profits will be observed over the time. But, it will make a positive influence on the customers with respect to demand of the customer. Also, including the innovative accounting will add value to the organization. Transparency in financial matters becomes effective with the help of this accounting system. This will also help the business organization to increase the profitability (Karanja Mwangi, 2013). References Abdel, M. (2011). Review of Management Accounting Research. Palgrave Macmillan. 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