The Impact of Business Analytics on Management Accounting

Purpose – The purpose of this paper is to speculate on the potentials of combining management accounting with the idea of business analytics. Or more specific how the three stages of business analytics can be used for combining the balanced scorecard with other related accounting concepts. Design/methodology/approach – The work is based on research literature and surveys provided by researchers and consultants within business analytics and the balanced scorecard.Findings – Kaplan and Norton as well as other researchers within business analytics have pointed to the unresolved issue of how to integrate different accounting model such as activity-based costing, lean etc., into the BSC. Such a holistic framework – e.g. expressed as a mathematical computer simulation model – would give the decision-maker a strong tool for do statistical testing and learn about the influences of different KPIs in decision making.Practical implications – The paper provides information and consideration on how to move from a simple descriptive approach to the more advanced level of prescriptive level in business analytics by using the arsenal of different quantitatively tools that are available. Subsequently, it provides some reflections on the skills that future accountants must possess to be able to fulfill their future role. Originality/value – The value of this paper is two-fold: first, it shows that relying on business analytics and its systematic methodological approach will open up new possibilities for management accountants; second, it shows that by integrating the principles of business analytics and the BSC framework it is possible to develop a comprehensive data-driven approach to dynamic performance management relevant for decision making.