Construction Of Strategic Management Accounting System Based On Balanced Score Card

With economic globalization has already become an inexorable trend, more andmore management teams foucus on how to maintain the companies developmentduring the changed competitive environment. In order to gain ground in thecompetition,companies consider to think about the development direction from astrategic perspective. Through using various management accounting tools to enhancecompany management for the achievement of strategy. However, at the time of usingvarious management accounting tools, more attention paid on the single tool’s effectfor the strategy implementation.Losing sight of the system building of the managementaccounting make the using of management accounting tools’ functions repetition orlack of logic compatibility,which may cause against of management accountingimplementation.After25years of development, Balanced Scorecard has become a effective tool ofstrategy management more than performance management. In this paper,the strategymaps will be built based on Balanced Scorecard, in order to achieve the integration ofBalancedScorecard, valuechain management, activity-based cost management,customer relation management and activity-based cost management. Then Build thesystem of strategic management accounting as the direction of causality of valuecreation. Through building the system of strategic management accountin，the strategydisassembled into the specific plan of action for the purpose of integrating the strategicobjectives and short-term financial，non-financial objectives.And then the system linkup the strategy plan of actions and cost management,customer management and theperformance evaluation by using the management accounting tools, in order to makingsure the effective execution of company strategy.The China Agri-Industries Holdings Limited is taken as a case company in thispaper.According to the company strategy of Fully Integrated Value Chain, the papertalk about building and practise of the strategic management accounting. First of all,design the strategy map of The China Agri-Industries Holdings Limited afteranalyizing the company competitive environment with SWOT analytical method.Through analysing the causal relationship of value creation, it clarifies the drivingfactor of company strategy. Then quantitate and disassemble the strategy into thespecific plan of actions. The implementiation of the actions can link up themanagement accounting tools and strategy,which may create synergies. At last, thesystem of management accounting’s problems and solutions are summarized. Hopingthe results could provide refernces for the domestic enterprises’ system building andpromote the development of theory and practice of the system.