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Behavioural Accounting

Behavioural Accounting is the process by which managers influence the behaviours of their subordinates, so as to ensure that the companys strategies are implemented. It is a process of motivating and inspiring managers and employees to execute actions that contribute most to the realization of the companys goals and strategies.

Management control looks for the most adequate organization structure, makes sure that the responsibilities and accountabilities of the managers are clearly and adequately defined, and enhances performance motivation by implementing effective budgeting and performance measurement systems.

Behavioral accounting was developed to make the behavioral effects transparent to current and potential stakeholders. This is done to better understand the impact that business processes, opinions, and human variables have on the value of the overall corporation, now and in the future.

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