The Roles of Information Systems in Linking Management Accounting and Financial Accounting: Empirical Evidence from Vietnam

Abstract

This paper analyzes the role of information system in linking management accounting (MA) and financial accounting (FA). We employ a survey by focusing on Vietnam firms applying information systems to their accounting activities. The findings indicate eight roles of information system such (1) as facilitator, (2) as catalyst, (3) as motivator, (4) as enabler of linking MA and FA, (5) by decreasing the linkage costs, (6) improving the linkage quality, (7) enhancing accountant’s the role, and (8) controlling the linkage between MA and FA. For managerial implications, we propose some recommendations for improving the role of information system in linking MA and FA. In the coming time, Vietnam firms should drastically improve information systems by using accounting software and enhancing their accountants’ qualification.