How to Establish a Management Accounting Information System
Depending on the type and size of your business, establishing and implementing a management-accounting information system can stretch on for months and months. Expect accounting productivity to decrease as you embark on the task, but don't get impatient. Implementing a system like this often takes longer than expected.
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Instructions
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Devise a strategic plan for establishing the management accounting system. Companies often implement the system in phases. Decide which elements should be implement first. For example, if you decide to start with the general ledger, some decisions will need to be made about accounting codes and reporting. Your plan must include when decisions are to be made and by whom. Plan for the timing of certain modules. If you are implementing a new payroll system, for instance, make sure that you don't stop all payroll operations when paychecks need to be processed on a tight deadline.
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Gain the support of upper management. This is critical. If your leadership views the system as important and worthwhile, other stakeholders are likely to follow suit. Demonstrate to upper management the benefits of such system and its potential favorable impact on the company's bottom line. This should help persuade top manager to provide any tools and assistance needed to ensure the new system gets established efficiently and effectively.
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Train accounting staff on new system. Most employees need training on how to use a new software and any new hardware. Many firms start their training before the system is ready for use. Don't count on staff learning by themselves. Invest in good training--it is well worth it. Contact the software firm or vendor from whom you purchased the system. Most likely it offers training live or remotely. Target the training to employees' tasks. For example, accounts payable clerks can be trained mostly in the accounts payable module and do not need to receive full training on inventory or other modules. A controller should know reporting in depth and a little about every module under his or her supervision.
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