The Impact of Fintech on Management Accounting

The Impact of Fintech on Management Accounting
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The City and State
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The Impact of Fintech on Management Accounting
Background Information/Introduction
Management accounting involves establishing, evaluating, measuring, and interpreting accounting information to help corporate leaders make informed decisions and, thus, run the firm’s operations efficiently. In management accounting, big data can be theorized as the magnitude of data that is kept or processed at the same thresholds or beyond the necessary information systems limits. Big data comprises vast datasets encompassing distinct forms of data, which could be evaluated to establish patterns, assumptions, and trends. Big data and big data analytics significantly influence the role of accountants within the managerial accounting domains. Due to technological advancements and the burgeoning data availability forms make big data increasingly central in influencing auditing and related management accounting practices (Herath and Woods, 2021, p.196). Accordingly, blockchain is a technological tool disrupting how management accounting operates and its role within an organization. Blockchain can be described as distributed ledger technological tool that allows only authorized participants within a shared network to share transaction data among different stakeholders. In addition, blockchain ensures that data records are continuously verified by all the authorized stakeholders within the shared networks. In this way, blockchain allows for more secure and transparent data records compared to a centralized transaction information system (Saputro et al., 2021, p.1). This paper critically evaluates the emergence of fintech and how it impacts management accounting. More specifically, it discusses the impact of big data and blockchain on management accounting decision-making to contribute to the limited knowledge on the subject matter.
The Emergence of Fintech and Overview of its Impact on Management Accounting Decision Making.
Digital financial services are increasingly being used by organizations and consumers, providing a favorable climate for digital entrepreneurship, Blockchain, Big Data, mobile payments, etc. Extant research is inclined to understand and explain this phenomenon by focusing on FinTech (Sghari and Mezghani, 2020, p.1). Some researchers view “FinTech” as innovations within the financial services sector that disrupt the current market landscape. In contrast, others regard them as startups driven by financial innovations increasingly sending ripple effects across the financial industry ecosystem (Sghari and Mezghani, 2020, p.1). Fintech provides a significant opportunity for management accounting practice to become increasingly relevant in contemporary organizations. It has changed the analyzed and presented metrics to influence corporate managers to make decisions. Fintech and its related digitization tools impact a company’s statement of financial position, traditional financial indicators, and return on investments, and how the metrics are applied to understand the customers (Tho, 2019, n.p.). In this way, fintech broadens the scope of management accounting practice and plays...