Industrial Revolution 4.0 in Managerial Accounting (Essay Sample)

Industrial Revolution 4.0 in Managerial Accounting
Executive Summary
Managerial accounting has substantially benefited from the benefits and advancements brought about by industrial revolution 4.0. In Malaysia, for instance, business organizations that have automated their operations have become better through coordinating their operations to meet their global standards. Consequently, such organizations have grown to become global, welcoming huge profits and expanding rapidly. Managerial accountants in the country are also knowledgeable enough to learn the trends of data presented through IR 4.0 to predict future activities that suffice the respective organizational activities. Some of the benefits of Industrial Revolution 4.0 in the managerial accounting field include; increased accuracy of analyzing and recording data, increased data recording and processing speed, and more precise data presentation. Data safety during storage and sharing is also guaranteed under IR 4.0. Integration of IR 4.0 in business and non-profit organizations has gained popularity due to the benefits. Automated systems of the IR 4.0 will majorly perform future managerial accounting roles.
Table of Contents
Table of Contents TOC \o "1-3" \h \z \u Executive Summary PAGEREF _Toc85056691 \h 1Table of Contents PAGEREF _Toc85056692 \h 2Industrial Revolution 4.0 in Managerial Accounting PAGEREF _Toc85056693 \h 3Key Aspects of IR 4.0 in Accounting PAGEREF _Toc85056694 \h 3Recording and Sensing PAGEREF _Toc85056695 \h 3Cloud Computing PAGEREF _Toc85056696 \h 3Mobile devices PAGEREF _Toc85056697 \h 4Advance human-machine interfaces PAGEREF _Toc85056698 \h 4Impacts of Industrial Revolution 4.0 on the Managerial Accountants Profession PAGEREF _Toc85056699 \h 4Improved Authentication and Reduced Frauds in the Profession PAGEREF _Toc85056700 \h 4Reduced demand of the profession PAGEREF _Toc85056701 \h 4Improved efficiency PAGEREF _Toc85056702 \h 5Time efficiency PAGEREF _Toc85056703 \h 5Reliability PAGEREF _Toc85056704 \h 6Storage PAGEREF _Toc85056705 \h 6Accuracy PAGEREF _Toc85056706 \h 7Improved Flexibility in the Profession PAGEREF _Toc85056707 \h 7Advanced Academic Demand PAGEREF _Toc85056708 \h 8Increased Job Satisfaction in the Profession PAGEREF _Toc85056709 \h 8References PAGEREF _Toc85056710 \h 9
Industrial Revolution 4.0 in Managerial Accounting
Managerial accounting plays an essential role in the organizational decision-making about internal operons in a company. It involves recording and analyzing financial information of a company such that they are appropriately interpreted and aid in better economic decision making on the respective company. Managerial accounting, similar to any other form of accounting, observes all the seven principles of accounting. Successful managerial accounting must consider the aspects of consistency, accuracy, and security of the data recorded and reported. Managerial accountants are tasked with identifying how the data can be protected and recommending it to the security department of a company.
Industrial Revolution 4.0 has been ongoing for the past decade. It is defined as the automation of various industrial practices through the integration of communication technologies. Its impact has been felt in all environments, including health, education, business, government, among other institutions. Primarily, the industrial revolution has proved to be an addition to the settings it has been applied. Business firms that have integrated industrial revolution 4.0 have experienced a more efficient workplace than their counterparts with partially or no IR 4.0 integrated. IR 4.0 has gained significant popularity over the decade. Many organizations considering the involvement of technology in various industrial processes have had a positive experience and give positive feedback, attracting more companies to engage.
The managerial accounting environment stands among the areas that have benefitted most from the fourth industrial revolution (IR 4.0). Industrial Revolution 4.0 is defined as the automation of administrative accounting practices using information technology means in managerial accounting. This implies that IR 4.0 in accounting involves the automation of recording, computing, and processing of data for the internal purposes of an organization. Accountants have to be well informed of the various technology-based computing methods to perform their multiple tasks involved in managerial accountancy
successfully.
Critical Aspects of IR 4.0 in Accounting
Recording and Sensing
Managerial accounting under the industrial revolution 4.0 uses sensing and automated recording systems to obtain data used for various organizational tasks. Most supermarket chains, for instance, use sensing devices that collect data about products sold, the product name, serial number, the corresponding price, and the time and store that the product has been sold. Tracking the products sold and their costs becomes more manageable than manually recorded, and data entered to computers or written in documents such as books and papers. Scanners ensure the accuracy of the information and provide a clear recording of the data (Iriyadi et al., 2018). Consequently, high-quality data is collected, and results obtained in their analysis give a true reflection and inform reliable decision-making based on data. Also, the scanning of products using the sensor ensures real-time data entry as they are connected to the data storage systems of the individual organization concerned.
Cloud Computing
Cloud computing stands among the most significant aspects of industrial revolution 4.0 in the managerial accounting environment. Cloud computing servers enable storage and processing of data uploaded. The data is sorted and put ready for access when the information is uploaded to the cloud space. Automated data storage and processing enabled by cloud computing allow business organizations to store data and prevent any losses that can cause misleading consequences to the firms. Cloud has a unique future whereby the available storage space can be expanded to suit the user's demands. This makes storage space limitless and can store several terabytes of company data. Thus, the users do not have to worry about the volume of data they wish to keep. Other than storing vast amounts of data, cloud computing enables data processing and availing them usable forms by organizations when needed. Regarding the size of data to be analyzed, cloud computing takes just a short moment to accurately analyze all of them and attain a result that managerial accountants can use.