Management Accountants are closely involved in supporting, planning, controlling, directing, communicating & co-ordinating the decision-making activities of organizations in the private as well as the public sectors.
In the modern era of technology, the traditional role of the management accountants has transformed significantly. To remain vital members of their organizations, management accountants are becoming more knowledgeable about trends affecting business and finance; prepared to change the types of tasks they perform; and willing to acquire the necessary knowledge and skills to function as business partners and change agents for their organizations. The introduction of the computerised ERP and Financial Management Systems has automated the accounting and financial reporting functions and enabled accountants to gather data, perform analyses, and report information in real time. This frees the management accountant to perform more sophisticated analysis and decision support activities. Businesses are reengineering their finance functions, which results in a decreased cost of finance functions. Management Accountants have switched their focus from historical-based data-gathering activities to future-oriented, decision-focused activities. Due to increased competition, the need for cost management is growing in importance. Cost management techniques, such as activity-based costing, target osting, value-chain analysis, economic value-added measurement and life cycles costing are very significant for organizations in order to be effective and efficient.
The management accountants with the following skills are playing an important role in cost management:
-- Expertise in ERP and systems design
-- Expertise in change management
-- Ability to relate strategy to cost management; and
-- Increased knowledge of businesses.
-- The Management Accountants will continue to be involved in management decision making as information specialists. Their role as business advisors, analysts, business planners and change agents will be more significant for businesses. Future will be 'knowledge era'; the obsolescence of knowledge will be very fast and more visible among accounting professionals. Jack Welch, CEO General Electric advises 'If you want to remain employed, you have to remain employable'. The future role of management accountants is more of advisory & strategic nature. That's why more and more Management Accountants are providing consulting support to the businesses.
Their role as business and management consultants helps enterprises in designing and implementing financial management & ERP systems, financial and cost analysis, business and management consulting, business planning and feasibilities, revival of sick industrial units, budgeting, strategy definition and implementation, internal controls and internal audit procedures, financial policies, cost and financial audits, tax and corporate planning, outsourcing and so on. Businesses are benefiting from the capabilities of management accountants to optimise their business performance. Management Accountants are willing to extend their support to government in developing economic and financial policies, budgeting, capacity building for better performance, financial management and other relevant areas.