Closing the Gap Between U.S. and German Managerial Accounting

The effect of the continuous process of globalization on management functions like marketing and sales, production, or R&D is well researched. But the forces of globalization are also effective for management support functions. A good example is managerial accounting with its distinct standards and methods in different economies. Managerial, as well as financial accounting, are pretty different in German-speaking countries, compared to the United States. This may be surprising because the goals ‐ giving the public a true and fair view, and supporting managerial decisions ‐ are the same everywhere. Recently, a convergence between these systems can be observed in business practice, triggered by the development of ERP systems, by regulatory requirements, and by changes in management thinking. Our paper aims (1) to explain the deeper economic, legal and cultural reasons for the national differences in the design of accounting systems, and (2) to uncover the driving forces behind the recent development of convergence. In addition to summarizing the relevant literature, we draw from experience in implementing and assessing managerial accounting systems both in German‐speaking countries and in North America.Wirtschaf