The role of management accounting in banks

Subject Areas : Financial Engineering

Leila Zamanianfar ¹ , Shahrzad Seraj ² , Zahra Kohandel ³ , Javad Ojaghi ⁴

1 - Department of Accounting, Shahrood Branch, Islamic Azad University, Shahrood, Iran.
2 - Department of Accounting, South Tehran Branch, Islamic Azad University, Tehran, Iran.
3 - Department of Accounting, Safadasht Branch, Islamic Azad University, Tehran, Iran.
4 - Department of Accounting, South Tehran Branch, Islamic Azad University, Tehran, Iran.

Received: 2022-06-16 Accepted : 2022-10-12 Published : 2022-11-22

Keywords: Banks, Management Accounting, management accounting methods,

Abstract :

Purpose: In general, management accountants may be seen as value-creators which in turn assist an organization to gain a competitive advantage. They are responsible for the integrity of top management and the reliability of the reports they provide. Also, they assume a role in which they are responsible for helping managers in strategic planning and controlling operations. The main purpose of this article is to provide an insight into the role of management accounting in creating and maintaining competitive advantage in the banking industry.Methodology: The current research is based on a philosophical and scientific approach based on the method of historical knowledge and is designed and implemented with the aim of promoting knowledge in a library manner by reviewing articles. The result of which is the development of management accounting knowledge.Findings: Studies show that management accounting provides skills and methods that play a vital role in planning, developing, implementing and evaluating strategic competitive policies. Also, studies have shown that the rapid growth and competition of the banking industry can be attributed to the use of innovative management accounting practices. In fact, to remain competitive, banks must offer services to customers that differentiate it from its competitors.  This issue shows the significant importance of management accounting in banks.Originality / Value: Based on the philosophical and scientific approach, the current research has explained the role of management accounting in banks.

References:

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