Innovation and Trends of Management Accounting in the 21st Century: Transformation and Support to Strategic Management Processes

Abstract

The paper presents a brief overview of the dynamics of management accounting evolution, but the focus of
the paper are innovations and trends in management accounting which characterise the first two decades of the 21st
century. The circumstances, incentives, and transformation of the management accounting system (MAS) as well as
the reasons for delay in accepting innovative approaches in management accounting were considered. Managementaccounting
techniques and practices are very dynamic, relatively adaptable to changing business conditions, but the
implementation of management accounting innovations (MAI) has earned some criticism. Investigated and presented
in the paper, basic trends in management accounting for the XXI century according to available literature, with the
study of the influence of the environment and the impact of the organization on the transformation of management
accounting. It was pointed out the role and competences of management accountants in the 21st century, as well as on
the challenges of innovation in the era of globalization that were set before management accounting. Theoretical and
practical achievements of strategic management accounting (SMA) were considered in order to support the processes
of strategic management. A communication gap between management accountants and managers in companies has
been identified. The purpose of the work is to identify potential solutions for better implementation of innovative
techniques and management accounting tools and to establish frameworks for increasing satisfaction and meeting the
objectives of management due to the techniques used in management accounting.