Trends in Management Accounting: The Shift to Predictive Accounting

The Shift to Predictive Accounting
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The Shift to Predictive Accounting
One of the key trends in management is the migration from historical analysis to predictive analysis (Institute of Management Accountants, 2014). This shift heavily relies on the use of technology for success. Traditionally, businesses have relied on past financial records to make decisions. However, with the shift to predictive analysis, businesses will mainly depend on forecasting future financial performance and use the prediction to make key decisions. For such a move to be effective, the future prediction has to be as accurate as possible. The use of high-end technology must be involved to achieve this high level of precision. The following is a discussion of an example in the New York Times. The example exemplifies the role of technology in predictive analysis in accounting.
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