Management Accounting, the Changing Role

Abstract

Management accounting change has been used to express a model shift in expectations of the management accountant. Developments like the adaptation in practice of new tools and techniques, academic background, and a practitioner-led movement towards a new role type in which the accountant acts more in an advisory capacity, integral managerial decision-making, rather than solely as a provider of information.

Management Accounting and Accountant

The Accounting profession is the most challenging profession in the business world. From the allocation of resources, controlling, and measuring the business’s performance, the accountant’s role has become more important (Kariyawasam, 2009). The term management accountant refers to an individual who has a special accounting training and works in an organization. As a management accountant’s task is auditing and taxation services, it is a critical issue that an accountant is closely involve in decision support and providing advice throughout the business, on both strategic and operational matters (Cooper and Dart, 2009).

The Change in Role

The increased competition in globalization provides the challenge on management accountant’s abilities to be better deployed in more direct support of the organization’s activities, long term trends in the development of cost-efficient information and communications technologies (Cooper and Dart, 2009). The technologies have reduced the traditional role of the accountant in transaction processing and financial report preparation and other demands on their work but can deployed to deliver the greater value on their expertise.The change in the role that the accountant performs, towards acting more in an advisory capacity integral to managerial decision-making rather than solely as a provider of information (Cooper and Dart, 2009).

The role of Management Accountant in a corporate world is closely involved in supporting, planning, controlling, directing, communicating and coordinating with the decision-making activities. Specifically, the role of management accountant in an organization is to support the information needs of management. However, the type, size, structure, and form of the organization can affect the complex role of management accountant (Kariyawasam, 2009). Management accountants were not participants in the decision-making process but provide the information that can highly affect the decision within the organization because they are the keepers of financial records.

The capacity for implementing change due to resource availability, supporting investment in new technology, retaining and restructuring as part of adaptation of new roles for the management accountant are part of the evolution (Cooper and Dart, 2009). The evolution of the role of a management accountant defines its broad and deep responsibility. The accountant has the authority to tell the executives about the information she or he gathered for over the years and expected to suggest ways to improve the quality of the decision (Siegel and Sorensen, 1999). The accountants’ credentials and skills are needed for their own success as well as the organization. The communication, oral, written, and presentation skills are highly appreciated by the business leaders to help them understand the financial reports and react on it. Accountants have the ability to work in different surroundings and with a team can make them have a solid understanding about the corporate accounting. And understanding the business transactions can make it easier for an accountant to provide fruitful information (Siegel and Sorensen, 1999).

Conclusion

The role of an accountant is diverse and critical. They can affect the decisions that the business leaders are going to create. They can also keep their eyes tracked in any changes that might happen while the decision has been in the process of assimilation. Accountants’ job is broad and complex but still, those individuals can handle the presence of the pressure. The change of their role in a management is another type of approach where they can manage the challenges brought by the globalization and the change in the world of business. The importance of an accountant can be criticized because they handle more of the financial reports than the business owners but when an accountant entered in the point of partnership, the criticism might get serious. It is impossible to

References:

Cooper, P., & Dart, E., 2009. Change in the Management Accountant’s Role: Drivers and Diversity. University of Bath School of Management [Online] Available at: http://www.bath.ac.uk/management/research/pdf/2009-06.pdf [Accessed 30 October 2009].

Kariyawasam, U., 2009. Changing Role of the Management Accountant. [Online] Available at: http://www.sec.gov.lk/pdf/Changing_Role_of_Management_Accountant_-_CIMA%20v2.pdf. [Accessed 30 October 2009].

Siegel, G., & Sorensen, J., 1999. Counting More, Counting Less. Transformations in the Management Accounting Profession, The 1999 Practice Analysis of Management Accounting. [Online] Available at: http://www.imanet.org/pdf/Counting%20More-1999%20Practice%20Analsyis%20-%20Executive%20Study.pdf. [Accessed 30 October 2009]