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Management Accountants Roles

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The Changes of Management Accountants’ roles

Management accounting is the process of identifying, measuring, analyzing, interpreting and communicating information in pursuit of organization’s goals (Hilton and Platt, 2011). According to Mishra (2011), the major objective of management accounting has always been the same - improving the business performance and profitability of an organizations. Since the business environment has rapidly changed over the last decades, it has been argued that the management accountants have moved from their traditional role into a more strategic decision role (Collins, 2012). However, there are some arguments held the position that organizations still prefer to use traditional management accounting systems, …show more content…

For example, one of the arguments said that many organizations today still prefer to use the traditional management accounting systems within different uses rather than adopt the advanced techniques (Bromwich and Bhimani, 1989). At the same time, Bromwich and Bhimani (1989) indicated in the same report that the adoption rates of advanced management accounting tools have remained in a very low level. As for the reasons, firstly in order to adopt the advanced techniques like activity based costing and customer profitability analysis, it requires data from different department and outside the company. It is costly and time consuming and for this reason, not all the companies can be able to afford using them (Caliahan and Gabriel, 1998; Cardinaels et al, 2004; Tversky and Kahnemann, 1991). Secondly, the new techniques such as the balanced scorecard or strategic pricing require a great communication system among the different layers across departments. If the situation cannot achieve, the techniques will not work as expected which lead to a waste of resource (Butler, Letza and Neale 1997; Hoffecker and Goldenberg, 1994; Kaplan and Norton, 1993). Thirdly, enforcing these techniques require additional skills from management accountants such as enhanced coordination, better quality communication and strategic thinking. Management accountants must learn these skills but the learning …show more content…

Management accountants are definitely more valuable and indispensable in the management team. The fast development of information system and advanced techniques enable them to spend less time on administration level and apply their expertise in the strategic level. Moreover, the globalization accelerated the evolution of management accountants, new roles and challenges are in front of them. The roles of management accountants will cretinous to transform in order to meet the needs of

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