Strategic Management Accounting - Report
Added on 2020-06-06
11 Pages3206 Words102 Views
MANAGEMENTACCOUNTING
Table of ContentsINTRODUCTION...........................................................................................................................11. The changes that can be expected to take place in the role of the management accountant...12. Use of strategic management accounting and associated techniques.....................................43. Suitable preparation for a career in a management accounting role.......................................6CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................8
INTRODUCTIONManagement accounting is considered as a processional form of recording thetransactions and daily activities. It is considered as a system of tracing the daily transactions foraccounting purpose. Being a part of strategic management and decision making, managementaccounting is also considered as a managerial accounting (Kotas, 2014). This unit indicatestowards the role of management accounting subject to more strategic. Change is defined inrespect of skills and the professionally qualified accountants to establish a better future. Expectedchanges and the role of management accounting is explained in organisational context. The waystrategic management accounting has improved the performance of organisation is explained inthis report. Suitable preparation for better career in management accounting role.1. The changes that can be expected to take place in the role of the management accountantConcept of management accounting is becoming change as per changing trends and thebusiness requirements. Today, the scope of management accounting is not only limited to trackthe records and transactions of daily business but also considered to be important as permanagement perspective. In present scenario, business models are changing due to fundamentalrequirements and because of the base of organisational structure. Management accountingconcept also gets modified and reformed as per the business requirements and the businessstructures. Business has been classified in various forms and structures in the 21st century. There aredramatic changes that have been done subject to operating and managing business organisation.Business model has been classified in two words – fluid and flexible. Innovations andtechnology are two major affecting factors which enhance the requirement of change in businessenvironment. Advancement and modern techniques has been change the definition ofmanagement accounting. Development and growth of competencies of organisation depend uponthe flexibility of accounting principles and rules. Challenges and uncertainties also get increased due to changing business models.Modified management accounting concepts play a vital role to absorb the pressure of changingbusiness environment and help managers to make effective strategies. Competitive globalbusiness environment and supply chain creates a complex situation (Lambert and Sponem,1
2012). All these signs indicate towards the values and parameters for developing the business forsustainable growth and development.Strategic changes are also taking place with the help of management accounting. Thereare various types of groups and individuals working together to attain the organisational goalsand objectives. Aim and objectives remain bifurcated as per the individuals but remaincentralised around one organisational aim. It is required to rephrase the form of business as perthe strategic changes in operations and functions. To achieve the core competencies and gaincompetitive advantages, organisations are adapting selective approaches and methods ofmanagement accounting. Change in respect of relationships and opennessThere are the types of groups remain associated to get the specific aim and objectives byoperating and managing operations together. Results and outcomes are the creation of portfolioof skills subjected to deal with challenging activities, risk bearing, financing and thedevelopment of large projects (Li and et. al., 2012). Large business groups and organisationalstructures are adapting new aspects of management accounting subjected to innovation andcreation of new products and services. Various terms are used to understand the need of change accounting structure of business.Role of management accounting has become vast for implementing new tactics, adapting newtechniques and models with another and changing the previous or existing tracking system.Concept of management accounting is basically used by the management level and accountantsto improve quality and performance of firm. From managerial purpose, it is also important toenhance the profitability of organisation Innovative changes as per the customer needs In the present scenario, organisations are more focused to attain customer satisfaction.Consumer satisfaction is one of the aspects which remain associated with the competitive aimand objective. Traditional approach of looking towards the formal legal and specified tenders andmore subtle business partners and reforms. Business entities try to get the sustainableinformation to make the changes in the structure of the business. Organisations are trying tounderstand the consumer perception and tends subject to get the competitive and strategicadvantages.2
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