“Impact of Technology IN MANAGEMENT ACCOUNTING

PRACTICES: BASIS FOR CRAFTING STRATEGIES IN

ACCOUNTING PROCESSES IMPROVEMENT”
Isaias D.,R., Poro Jr.,F., Resuello A., J.
First City Providential College,
City of San Jose Del Monte, Bulacan, Philippines
Flotarco.poro@fcpc.com.ph Diannrose.isaias@fcpc.com.ph Ajresuello@fcpc.com.ph

Abstract—This study aimed determined the impact of technology in management accounting

practices basis for crafting strategies accounting improvements of accountants or Management
accountants in City of San Jose Del Monte Bulacan. This study which utilized quantitative approach
and descriptive research design. A survey questionnaire determined the impact of technology of the
tested factors. This study employed the percentage, mean, and analysis of variance. The respondents
perceived the company product and services factor to have the highest impact among the three
followed the employee performance factors, firms/organizations, factor, respectively. The factor with
the lowest impact is the firm/organizations factor. These were the basis of the accounting process
improvements strategies as the study’s output. This study recommended to the accountants and
management accountants to learn, developed, enhance their skills in technology. Accountants need to
concentrate on expanding their technological expertise, improving it, and upgrading to the best
software that can support their organizations’ growth. To the accountants and future researchers can
use this study to determine the impact of technology to various company and to further enhance their
organizations and support for further studies.

Keywords: Technology has significantly changed the field of management accounting. Previously,
management accountants were in charge of manually gathering, documenting, and interpreting
financial data. This was a labor- and time-intensive procedure that frequently

valuable insights accounting organization,

I. INTRODUCTION
By the growth of the automation and
advancement technology for accounting firms
there are several changes in the technology
sector, which are increasingly complex and more
advance. It changing the way of living, interact
and work of increasing Digitalization of
services, it has become necessary for organization
to adapt and change to meet demands.
Accountants can adjust technological
technological usage and researching its impact on
engagement levels, learning outcomes, and
commercial significance (Gustafsson, 2015).
To conduct this assessment, a
quantitative research method will be employed.
Survey will be conducted to gather data on
accountants’ experiences, perceptions, and
actions by using technology in accounting firms.
The findings of this research will provide
managers, auditors, aiding in the development
of strategies to optimize technology integration
within accounting organization. By identifying
strengths, weaknesses, and opportunities in
accounting organization. To enhance
accounting technological proficiency for its
precisely optimize work processes,
productivity and efficiency.
In addition, in this day and age of
technological revolution, assessing accounting
firms’ use of technology is critical. This study
article seeks to add to the current body of
knowledge by performing a thorough
examination of many aspects of technology
integration, opening the way for the
application of technological progress as a new
platform for accounting firms. The accounting
organization may change to meet the demands
of the accounting profession and survive in the
digital era by doing this evaluation (ECLAC,
2018).
Lastly, the focus of this study is to
investigate how technology tools and platforms
are changing the work of an accounting
professional and the dynamic between the
professional and the client. Additionally,
retaining a personal connection with clients may
improve relationships and allow the work process
to go more smoothly, but it may impair the
independence of the accountant, causing a biased
opinion. Hence, how automating the accounting
process affects the client-accountant relationship
is unclear. Looking further into the true impact of
technology will reveal whether or not it is for the
best of the accounting practices.
Table 1 The result showed that the majority
57% of the respondents are female while 43%
of the total respondents are male.
Through this approach, data were
gathered using this method by closely adhering
to set of procedures in preparation for
statistics systematic analysis. A quantitative
research approach was employed in analyzing
and understanding the impact of technology in
management accounting practices among
management accountants in San Jose Del
Monte, Bulacan. Specific to the quantitative
approach was descriptive research that would
be used in this study. The descriptive research
design was used to identify characteristics,
frequencies, trends, and categories.

II. METHODOLOGY
This study used the quantitative
approach. A systematic analysis of phenomena
using measurable data and statistical,
mathematical, or numerical approaches that
produces logical, statistical, and impartial
conclusions (QuestionPro, 2022). Conducted at
City of San Jose Del Monte Bulacan
Figure 1 shows that this study will determine
the impact of technology in management
accounting practices in City of San Jose Del
Monte, Bulacan. With accurate data, the
researcher will be able to come up with
crafting strategies in accounting processes
improvement highlighting structured approach
on impact of technology that should be
prioritized or relevant in the business.

Impact of Technology in
Accountants:
Demographic Profile Basis for Crafting
 Age  Employee Performance Strategies in
 Sex  Firms/Organizations Accounting
 Product and Company Processes
Services Improvements

Figure 1: Paradigm of the Study

III. RESULTS
 TABLE 1: GENDEROF RESPONDENTS

Gender Frequency Percent

Male 43 43.00
Female 57 57.00
Total 100 100.00

Table 2 shows the age group of the
respondents that The results showed that 58% of
the respondents were from the age group of 21-
30 years old.
The age group of 31-40 formed 30% of the total
respondents while the age group of 41-50 only
consisted 12% and lastly, no one in the
respondents under the age group of 51 and
above got 0% of the respondents.

TABLE 2: AGE OF RESPONDENTS

Age Group Frequency Percent
21-30 years old 58 58.00
31-40 years old 30 30.00
41-50 years old 12 12.00
50 years old - above 0 0.00

Table 4 Based on the results of Employee
Performances Factors it shows that the Item
indicating technology reduced the number of
physical meetings between the person
responsible for the office and the clients got the
highest rating of 3.33, which falls within the
range of Strongly Agree. This signifies that the
respondents perceived the technology reduced
the number of physical meetings between the
person responsible for the office and the clients
as a factor with Strongly Agree influence the
impact of technology.
The Item indicating the less work hassle
received the Strongly Agree rating of 3.32. The
Item indicating the technology helps increase
employees’ capabilities to deliver accurate
accounting reports received the Agree rating of
3.23. The item the employees use technology
networks during work hours obtained an Agree
rating of 3.21. Technology helped employees to
do more value-adding activities got a Agree
rating of 3.19 while the item indicating the
employees can easily access database got a
Agree rating of 3.18.

The item technology help employees reduce

time of works received the lowest rating of 3.10
which still falls in the range of Agree rating.

TABLE 3: EMPLOYEE PERFORMANCE ON THE IMPACT OF TECHNOLOGY IN THE

MANGEMENT ACCOUNTING
Description Mean Interpretation
Technology help employees 3.10 Agree
reduce time of works.
Less work hassle 3.32 Strongly Agree
Technology reduced the 3.33 Strongly Agree
number of physical
meetings between the
person responsible for the
office and the clients.
The employees use 3.21 Agree
technology networks during
work hours.
Employees can easily access 3.18 Agree
database
Technology helped 3.19 Agree
employees to do more
value-adding activities
Technology helps increase 3.23 Agree
employees capabilities to
deliver accurate accounting
reports
Grand Mean 3.22 Agree

..
Legend: 1.00-1.75 (1) Strongly disagree; 1.76-2.50 (2); Disagree; 2.51-3.25 (3) Agree; 3.26-4.00 (4) Strongly
agree.

Table 4 According to the results of Firms/
Organizations Factors on the impact of
technology in the management accounting, the
item indicating the use of technology increased
the profitability of the firm and technology
helped to attend new markets received the
highest ratings of 3.29 which falls within the
range of Strongly Agree. These ratings shows
that the use of technology can be a big impact to
the firms and organization
The item indicating that received a rating of
3.23, 3.23, 3.22, 3.22, and 2.62 which falls
within the range of agree.
TABLE 4: FIRMS/ORGANIZATION ON THE IMPACT OF TECHNOLOGY IN THE
MANGEMENT ACCOUNTING

Description Mean Interpretation

The firm, with new 3.23 Strongly Agree
technology, can offer new
products to its clients

The use of Technology 3.29 Strongly Agree

increased the profitability of
the firm.
The accounting data 3.22 Agree
management of the firm
improved as a result of
Technology use
Technology furthered the 2.22 Agree
clients’ fidelity to the firm.
Technology helped to attend 3.29 Agree
to new markets.
The technological innovation 3.23 Agree
furthered the firm’s growth
in terms of clients
The management accounting 2.62 Agree
database is easily available
through remote access for
users.
Grand Mean 3.16 Agree
Legend: 1.00-1.75 (1) Strongly disagree; 1.76-2.50 (2); Disagree; 2.51-3.25 (3) Agree; 3.26-4.00 (4) Strongly
agree
Table 5 According to the company products & The item indicating got rating of 3.33, 3.27, and
services on the impact of technology in 3.24 which falls within the range of strongly
management accounting, the item indicating the agree. The item indicating received a lowest
product & services, with technology support, are rating of 3.22 which is falls within the range of
now performed in a more agile manner got the Agree.
highest rating 3.77, which falls within the range
of Strongly Agree. This signifies that the
product and services as a factors with a strongly
agree in the use of technology support can be
performed in more agile manner.

TABLE 5:: ACCURACY OF ACCOUNTING STUDENTS IN UTILIZING TECHNOLOGY IN

ACCOUNTING EDUCATION
Description Mean Interpretation
The product & services, with 3.41 Strongly Agree
Technology support, are
now performed in a more
agile manner.
The product & services, 3.24 Strongly Agree
with technology support, are
now performed more safely
and controlled
The technology opens other 3.22 Agree
business opportunities and
cost efficiency measures for
the company.
The quality of the services 3.33 Strongly Agree
provided improved as a
result of the Technology use.
The technology simplifies 3.27 Strongly Agree
the report production.
Grand Mean 3.29 Strongly Agree

Legend: 1.00-1.75 (1) Strongly disagree; 1.76-2.50 (2); Disagree; 2.51-3.25 (3) Agree; 3.26-4.00 (4) Strongly
agree
 Table 6 According the results of
significant difference in the impact of
technology in management accounting practices
when grouped according to the demographic
profile, there was no significant difference in the
impact of technology in management
accounting practices when grouped according to
sex. For the reason that the P value .238 was not
significant at 0.238>0.05 significance level.
Therefore, the null hypothesis was accepted.

TABLE 6: SIGNIFICANT DIFFERENCE IN THE ASSESSMENT OF ACCOUNTANTS ON THE

IMPACT OF TECHNOLOGY IN THE MANAGEMENT ACCOUNTING WHEN GROUP
ACCORDING TO GENDER
Sum of df Mean F Sig. Reject/Accept Interpretation
Squares Square H0
Between 0.134 1 0.134 1.410 0.238 Accept H0 No
Groups Significant
Difference
Within 9.319 98 0.0.95
Groups
Total 9.453 99

Table 7 According to the results of significant of technology in management accounting

difference in the impact of technology in practices when grouped according to age.
management accounting practices when grouped Because the P value of .019 was significant
according to their demographic profile, that at .019< 0.05 significance level. Therefore, the
there was a significant difference in the impact null hypothesis was rejected.

TABLE 7:: SIGNIFICANT DIFFERENCE IN THE ASSESSMENT OF ACCOUNTANTS ON THE

IMPACT OF TECHNOLOGY IN THE MANAGEMENT ACCOUNTING WHEN GROUP
ACCORDING TO AGE
Sum of df Mean F Sig. Reject/Accept Interpretation
Squares Square H0
Between 0.745 2 0.372 4.147 0.019 Reject H0 With
Groups Significant
Difference
Within 8.708 97 0.090
 Groups
Total 9.453 99
. organization’s commitment to high financial
SOP 4: Research Output
Based on the results, the firms
/organizations factor has the lowest grand mean
of 3.16 which is in the range of agree that has an
impact of technology in management
accounting practices.
This would make the focus of the
Accounting Processes Improvement on this
factor relative to the other two but not
disregarding it as it still has high overall extent
of impact.
The proposed accounting process
improvements aim to improve financial
reporting efficiency, accuracy, and transparency
by utilizing advanced technology and
streamlined workflows. It will automate tasks,
reduce errors, and adhere to updated accounting
standards. The changes will prioritize a user-
friendly interface, improved communication,
and collaboration among accounting teams.
These enhancements align with the
management and reporting standards.
IV. CONCLUSION
Based on the study, the researchers
proposed improvements in accounting
processes typically include streamlined
workflows, reduced manual errors,
enhanced reporting capabilities, and
increased overall productivity due to
technology integration. Three factors were
identified as the impact of technology on
management accounting. This includes
employee performance, firms,
organizations, and company products and
services.
Most of the respondents strongly agreed
that the company’s products and services
are effective because of the use of
technology in accounting processes.
Respectively, based on other factors, this
research showed that technology helps a lot
of accountants in organizations, and
employee performance in terms of accuracy,
work can be done faster, improving
strategies, efficiency, and time management
significantly improves with the integration
of technology in accounting processes.
Therefore, there is no significant difference
in the assessment of accountants in the
impact of technology in the management
accounting practices when grouped
according to their demographic profile.
It is a privilege for us to sincerely thank each
and every individual who helped us to
accomplish this project successfully. With all
of our hearts, we would like to thank our
Accounting Research. Professor Cynthia A.
Zarate for all of her help and advice
throughout the study’s execution.
The words to convey our gratitude for the
participation of our respondents, as well as
friends and family. So, we’d like to use this
occasion to convey our appreciation for your
support of our research.
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