Changing Role of Management Accountants in the Business Environment

Running Head: Advanced Management Accounting
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Advanced Management Accounting

Advanced Management Accounting 2
Introduction:
An essay is to be prepared on the changing role of the management accountants in the current
business environment. The passage of time has led to a phenomenal changes in the roles and
responsibilities of the management accountants in the organisational scenario of business. The
fellow management accountants in the business spree started off from being a cost accountant to
being accountant for six capitals and accounting in the space of public sector. So with the
passage of time the responsibilities and functions of the management accountants has evolved as
currently they belong to core part of the management team. The role of the management
accountants are not limited to preparing and analysing the financial statements rather they have
grown as strategic advisor for the public organisations. Accordingly the essay would explore the
opportunities available and challenges faced by the management accountants in the changing
global and digital economy.
Management accountants:
Management accountants plays an integral part in the organisational scenario of business by
tracking the revenue and expenses of the business and holds a position of noteworthy
responsibility and act consultant to the firm (Brewer, 2017). The management accountant
generally works for the public companies, government agencies and private enterprises. They are
also known as managerial accountants and prepares the financial data and derives rightful
information out of it for making internal decisions to run the business efficiently. It is seen that in
the business scope of the organisation the role of the management accountants are multi-
dimensional as they strive to manage risks, prepare budgets, strategize and undertakes business
decision assisting the Board of Directors (Hopper & Bui, 2016). The management accountants
are quite likely to supervise and monitor the workings of the entry-level accountants managing
the bookkeeping task and preparing the financial statements.
Again in a smaller enterprise the role of the management accountant would vary as the
professional would be engaged in analysing the financial data, budgeting and forecasting and
make plans for the purpose of performance management. Then the data are to be presented to the
senior management for making operational decisions in business (Lafond, McAleer, & Wentzel,
2016). They also play a significant role in conducting a thorough risk management for the
business, arrange for funds and enforce compliance within the organisational scenario. The

Advanced Management Accounting 3
phenomenon enables the managerial accountants to earn expertise in various financial
dimensions like budgeting or taxation. For this purpose the management accountants are
supposed to pool the financial and non-financial data to have an insight of the organisational
process (Cimaglobal, 2019). So it could be seen that the businesses irrespective of their size and
turnover need the service of the management accountants.
Opportunities available to the management accountants:
The profession of management accountants are highly rewarding as they contribute effectively
for the purpose of business and deliver the job responsibilities at various levels to fulfil the
business goals. The career opportunities for the management accountants start from learning the
basic intricacies of accounting to various functioning of business (Malmi, 2016). As the
individuals progress in their career they undertake responsibilities ranging to monitoring and
supervision that could earn them the coveted post of Chief Financial Officer (CFO) in the
organisation. So the career path of the potential management accountants start with learning the
accounting fundamentals and earning the Certified Management Accountant (CMA)
certification. Again the profession of management accountants are supposed to change with the
passage of time as the business dynamics has undergone a metamorphic change. In this context
the aspect of globalisation and digital economy are to be widely considered as such phenomenon
has also led to change the profession of management accountants as well (Bhimani & Bromwich,
2009).
The changing global scenario by means of globalisation has brought changes in costs, strategy
and technology which apparently opened up new doors for the professional management
accountants. It is because the aspect of globalisation and digitisation play a significant role in
decision making for the management accountants and it has opened up new career dimensions
for them (Chenhall & Moers, 2015). The digital innovations has led to an improved level of
financial control for the purpose of integrated decision making taking considerations of the cost
information, strategic intent and technological progress within the departmental extent of the big
business houses. So for a multi-national organisation the digital technology has definitely helped
the management accountants to integrate the business decisions opting out of the various
departments or units within the geography or overseas unit (Granlund & Lukka, 2017). It is