Management Accounting Tools for Sustainability Information Decision-making and Financial Performance

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Khathutshelo Matambele
Huibrecht M. van der Poll

Abstract

Many organisations today are still not making use of Management Accounting Tools (MATs) to assist in providing sustainability information for decision-making and the way it influences the financial performance of an organisation. As a result it may negatively impact financial performance of organisations due to a number of errors which may include ancient cost drivers; erroneous business decisions, inaccurate information and human errors. Without applying MATs, managers of organisations may find it difficult to improve the day-to-day operations and take decisions to enhance the financial performance of the business. Information was collected using interviews to examine whether MATs can provide sustainability information for decision-making and how it influences the financial performance of an organisation. The research was carried out among listed organisations on the Johannesburg Stock Exchange (JSE). It was established that MATs provide strategies that influence decision-making and performance, although decision-making is the responsibility of executives or directors of the organisations. The study also established that financial managers who are focusing more on financial statements and reporting perform Management Accounting (MA) tasks. Hence future research should focus on the importance of segregating MA roles from those of financial accountants or managers to enable the organisation to focus on different reports for different outcomes.

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How to Cite
Matambele, K., & van der Poll, H. (2017). Management Accounting Tools for Sustainability Information Decision-making and Financial Performance. Alternation Journal, (20), 189-213. Retrieved from https://journals.ukzn.ac.za/index.php/soa/article/view/822
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