Concepts of Strategic Management Accounting
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Added on 2020-02-17
Concepts of Strategic Management Accounting
Added on 2020-02-17
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Advanced ManagementAccounting
Table of ContentsINTRODUCTION........................................................................................................................2How the role of management accountant is likely to change.................................................2The likelihood that wider adoption of strategic management accounting and application ofassociated techniques is likely to lead to improved organisational performance...................4Extent to which career in management accounting role is suitable........................................7CONCLUSION............................................................................................................................8REFERENCES ............................................................................................................................9
INTRODUCTIONAdvanced management accounting offers various tools and techniques of accountingwhich can be used by the users to get better understanding of situations which are faced bythem during the course of business(Baldvinsdottir,Mitchell and Nørreklit, 2010). According tothe (CIMA), Management Accounting is "the process of identification, measurement,accumulation, analysis, preparation, interpretation and communication of information used bymanagementto plan, evaluate and control within an entity and to assure appropriate use of andaccountability for its resources(Jemal and Mohsen, 2017). In this report it has been stated thatwhat are the roles and responsibilities of management accountant and how they likely tochange as per various organisational situations. Various concepts of strategic managementaccounting and application of various techniques has been mentioned therein. Strategicmanagement is helpful in making decisions regarding future goals and present situations in away which is necessary to attain various goals and objectives which have been desired byorganisation. Concepts mentioned in this report has been supported through statements ofvarious authors.How the role of management accountant is likely to changeManagement accounting change is referred as the change in expectations of amanagement accountant. There are some drivers which changes the expectation ofmanagement accountant. These changes and change in role of accountant have affected boththe professional field and academic accounting literature in past few years(Burritt,Schalteggerand Zvezdov,2011). There may be some issues which can impact over the workingenvironment related with this field. As now a days as stated by some authors technology hasbecome a major factor which changes the roles and responsibilities of various employees.Management accountant also need to implement certain technological factors inperformance of his duties so that they can deal with their responsibilities in an efficient andprofessional way. Accountant require to make his working skills flexible so that in case wheresituation changes and earlier methods to solve those problems are not efficient enough then insuch case they can change their method to deal with the adverse and challenging situation.Innovations are made in form of flexible organisational technologies. The need for change isever present and thus Burns & Scapens Highlight three main forces for change:
Technology: There has been a great change in last 2 decades as Managementaccounting used to be one of the few selected areas of accounting from which data canbe accessed easily but now through use of technology it is easier to access data fromother areas too. By the help of technology management accounting has broadened itsrole and has become a supporter, advisor, controller and innovator.Management Structure: With more usage of empowerment in the businesses hasempowered management teams to have wider range of information which has increasesthe role of management accounting. Competition: In the competitive environment threat as well as opportunity exist whichdrives the change through the development and defence. It involves understandingfinancial and non-financial issues over short and long term both(Sulaiman, Ramli andMitchell, 2016).Management accounting deals in management of organisational funds which are usedin various projects(Cinquini and Tenucci, 2010). So its become the responsibility of amanagement accountant to find the best alternative regarding finance which has less cost andless obligations so that organisation can smoothly run their operations in a way which canassist it to achieve predetermined targets and objectives.As stated by the author, factors like technology, techniques and flexibility of conceptsare some factors which changes the role of cost accountant in an organisation. The role of management accountant helps in performing the task in a better way so that they can ensure the financial security of company as well as helps in handling all the financial matters(DRURY, 2013). Along with this it assist in managing overall strategy so that they can attain the success. There are so many key challenges which are faced by the business and management accountant have to adapt the change for improving position of business. Innovation is a advance form of operational system and flexible technology for doing operations and make new form of business enterprise. The staff members of business entity have to do proper developments so that they can attain success. Along with this it assist in improving the value of developing greater versatility for the future. Fluid organisation assumesin a different forms as they are a informal group and helps in achieving goals and objectives. In organisation changes is necessary to gain the new experiences. They have to follow appropriate strategy, structure, process as well as products. In doing the changes in
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