Essay about Changing Role Of Management Accountants

Essay about Changing Role Of Management Accountants

Length: 1607 words (4.6 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

Businesses operate for the wealth of shareholders. Whether it provides goods or services, the aim is to make a profit by adding value. Nowadays these processes are closely monitored and controlled by the management accountants to ensure the highest return possible. Nevertheless, traditional budgeting and costing techniques are sufficient, but as the business environment changes, the demand for management accountant’s role become contentious.
Under those circumstances, contemporary management accountants are suggested to become advisors, or business partners, that “solve business problems and help to instil more commercial astuteness” (Burns, Quinn, Warren, & Oliveira, 2013b, p. 5). Therefore, the purpose of this essay is to examine the changing role of management accountants with the evidences and critically appraise any controversies.
For this reason, this essay aims to provide insight into the changing role of management accountants by first examine the current role in accordance to contemporary agreement. Then the discussion will analyse the factors that initiated the changes. These will build upon the arguments of the changing process, where various aspects of the role will be assessed. Finally, the last section will take a brief look into the future through analysing projections of how the change may guide management accountants.
To begin with, Weetman (2006, p. 432) identified three functions of management accounting: directing attention, keeping the score and solving problems. He relates these roles to the stages of planning and control to illustrate the relevance. For example, measuring the quarterly performance is linked to the objective of keeping the score and it leads to the examination of the future environment. Likew...

... middle of paper ...

...but a call to “be a logicial analyser of management decisions and a providre of relavant information” (Baldinvsdottir et al., 2010, p. 4).
Indeed, there is still value in the older techniques, which recogised by the IFAC in their phases of development by demonstrating that each phase is the broadening of the previous (Burns et al., 2013a, p. 477). In that manner the bean counter and business partner can co-exist and be simply a rebalancing of the traditional role and changing responsibilities (Baldinvsdottir et al., 2013, p. 48;).
As a conclusion, the change in management accountant’s role is on going. External factors will continue to drive the development. Whatever holds in the future for managers and their partner, it is essential to remember that “management accountants need to be adaptable, but they must also remain decisive” (Baldinvsdottir et al., 2010, p. 7).

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Essay about The Changing Roles of Management Accoutants

- 1. Introduction Management accountants and the system of management accounting have had a core importance in working and operations of the corporates. Over the years they have been fulfilling their traditional job requirements such as bookkeeping, recording and reporting financial information. It is believed that as over the years business and corporate world has evolved and gone through many changes and management accountants being part of this system would also face transformation in their roles....   [tags: management accounting]

Better Essays
1358 words (3.9 pages)

Kraft Foods Case Study Essay

- Contents Kraft’s Foods Inc. financial planning: 2 What is financial planning and budget? 2 Initial step of budget or financial planning: 3 Financial Panning of Kraft’s Food Inc: 4 General business activity of Kraft’s food: 4 Budgeting Plan of Kraft’s Food: 5 Budgeting Plan of Kraft’s Food: 6 Cash flow and previous forecast: 6 Previous forecast and future budgeting: 7 Variance Analysis: 8 Net Revenues of the past years: 9 Why Zero based budgeting system: 11 Sourcing: 11 Reducing the Complications in sourcing: 12 Risk management strategy: 13 Employee benefits: 13 Insurance policy: 14 Success of the plan In Kraft’s Food Corporation the planning analyst and the other business departments work t...   [tags: management accountants]

Better Essays
3268 words (9.3 pages)

Management Accounting Essay

- Finances Future: Challenge or threat?-Management Accounting Missing Article This article is a bout the changing demands of the business world and the impact it will have on management accounting. According to this article the business role that management accountants play will be significantly different in the future. While this change is inevitable it is unclear how many of today's accountants will be able or willing to adjust to the change and conform to what is being called "New Accounting." Accountants in the future will have to play a much larger role in their organization....   [tags: Management]

Better Essays
770 words (2.2 pages)

Essay about Role Of Management Accounting And Accountants

- Management accountants undergo professional training which ensures they can analyse information and systems. This supports their significant role in developing and implementing risk management within their organisation (CIMA, 2002). A quote cited in Drury (2015:292) written by Lees (n.d) describes what she believes the typical risk assessment model for a management accountant includes. The model includes; 'identify risk, assess their impact and probability; and develop risk responses. ' It is explained in Drury (2015) that the approach seems reasonable, but it is questioned how specific management accountants need to be when identifying risks....   [tags: Risk management, Management, ISO 31000, Risk]

Better Essays
1128 words (3.2 pages)

Essay about International Journal Of Contemporary Hospitality Management

- Burgess, C. (2007). Do hotel managers have sufficient financial skills to help them manage their areas?. International Journal Of Contemporary Hospitality Management, 19(3), 188-200. doi:10.1108/09596110710739895 In this research paper Cathy Burgess (2007) investigates if hotel managers have the financial skills to effectively manage their areas within the constantly changing industry. Two of the research projects used were performed in 1993 and focused on the roles of a financial manager, quantitative research was also undertaken by a survey through a tick box method that is mailed to the BAHA (British Association of hospitality accountants) it was sent to 502 members in December 2005, a...   [tags: Hotel, Hotel manager, Hotels, Star]

Better Essays
1000 words (2.9 pages)

The Institute Of Management Accountants Essay

- Institute of Management Accountants Ethics Management accounting is very important for all types of organizations. Managerial accounting information is gathered and used to help managers make decisions regarding the operations of the organizations. Management accountants are in charge of executing different tasks to ensure the company 's financial security. For that reason, management accountants need to maintain an ethical and moral way of working in order to perform their jobs successfully. The Institute of Management Accountants (IMA) has a detailed list of the ethical practices management accountants need to abide by....   [tags: Ethics, Business ethics, Management, Profession]

Better Essays
1182 words (3.4 pages)

Management Accounting Essay example

- The last several decades have been a turbulent period for management accounting in the United States. Many U.S. businesses failed in the international market, and the management accounting profession recognized that some of the blame rests upon shortcomings in the information provided to managers. A continuous flow of articles dating back to the mid-1980's such as Kaplan (1986) or Chalos and Bader (1986) has criticized contemporary management accounting systems. On the other hand, Reider and Saunders (1988) offered a defense of contemporary management accounting methods asserting that the methods are adequate but have not been used appropriately....   [tags: essays research papers]

Better Essays
2825 words (8.1 pages)

How the Role of an Audit Firm has Expanded Over Time Essay

- As the nature and structure of companies has changed over the years, so has the portfolio of services that auditors provide. Today, while companies still rely on an auditing firm’s classic audit services, they use the same firms for attestation services and increasingly for financial and non-financial assurance services as well. The changing scope dovetails with a rise in the outsourcing of non-core activities and a heightened need for management to understand and drive continuous improvement through their business processes....   [tags: cpa examination, audit services, tax service]

Better Essays
1342 words (3.8 pages)

Duties Of A Management Accountant Essay

- A. Duties of a management accountant The role of the management accountant is to perform a series of tasks to ensure their company 's financial security, handling essentially all financial matters and thus helping to drive the business 's overall management and strategy. Management accountants are key figures in determining the status and success of a company. Some choose to become a Certified Management Accountant (CMA), a similar credential to CPA, but with a greater focus on cost accounting, financial planning, and management issues....   [tags: Management accounting, Management, Accountancy]

Better Essays
981 words (2.8 pages)

The Anton Accountancy Ltd. Essay

- 1. Introduction:- The Anton Accountancy Ltd. Founded in 1986 by bill and Joe. Bill and Joe are partners in the Anton Accountancy Ltd. They both are chartered accountants. But now Joe wants to retire within the next 12 months. So Joe’s daughter Sam and her husband Leo will be run the business. They both have the experience in business. They want to do some changes in this company because company is going to down in financially. The main focus is now on more advisory service. 2. Purpose of the organisation There is some formal planning for such a change about the Anton Accounting Ltd....   [tags: Management, Leadership, Skills management]

Better Essays
936 words (2.7 pages)