Under an integrated accounting system design, management accounting information is provided faster than under a separate design as no additional internal database (‘third set of books’) has to be established. Budgets and internal reports are based on the firm’s financial records
and prepared in accordance with financial GAAP.
Financial key performance indicators, e.g., return on investment or residual income, can easily be reconciled to GAAP-based profit measures.
In consequence, management accounting information also becomes less error-prone and therefore more reliable, as the underlying financial accounting data are subject to strict compliance rules and checks by internal as well as external auditors