Management Accounting: Roles and Importance of Professional Accountants in Businesses

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Management Accounting

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Table of Contents
Accounting Professional..................................................................................................................3
Group Dynamics..............................................................................................................................4
Conflict Resolution......................................................................................................................6
Project Management........................................................................................................................7
Problem Solving..........................................................................................................................8
Influence, persuade and negotiation............................................................................................8
Professional Development Plan.......................................................................................................9
Reference List................................................................................................................................10

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Accounting Professional
When somebody is asked about what is the work of a professional accountants, in the common
responses some roles are mentioned such as independent auditors and tax agents. However, this
is not the truth. The functions performed by the professional accountants working for business
companies are often not very well understood. The internal auditors, the independent director
and Chief financial officer of business organisations have some things in common. All the
individuals in the mentioned positions might be working as professional accountants in
businesses. The professional Accountants, besides these rules, also play many other roles in
organisations of all sorts. Their vast range of experience and work has commonality in one thing
which is their accounting knowledge. The role of the professional accountants in organisations
has a great importance as they help in ensuring the significant quality of financial reporting and
statements of a company (Lovell and MacKenzie, 2011). The financial reporting integrity is safe
guarded by the professional accountants in businesses (Greenwood, Suddaby and Hinings, 2002).
Hence, the task of the professional accountants in businesses is to defend the financial reporting
quality at the source where figures and numbers are produced (Nandan, 2010). Business
professional accountants play vital roles which contribute to the overall progress and stability of
the society. In a business organisation, a competent professional accountant is considered to be
an in valuable asset for the company. An inquiring mind to the work of these accountants is
employed by them on the basis of their knowledge and understanding of the financials of a
company (Montano, Donoso, Hassall and Joyce, 2001). Business professional accountants often
ask certain challenging questions, and solve the same by the usage of their intimate skills and
understanding of an organisation and the environment where it operates (Skærbæk and
Tryggestad, 2010). The training of these accountants in the field of accountancy helps them in
adopting an objective and pragmatic approach towards solving problems and issues. This is
considered to be your valuable asset to the management of a company, especially for medium
and small enterprises where the only professionally qualified staff members are the professional
accountants themselves. The accountancy professionals in business organisations help them in
providing advice, help with corporate strategy and assist in reducing down the overall costs of a
company as well as mitigate the risks and improve the top line of the organisation (Skærbæk and
Tryggestad, 2010). When a board director is also professional accountant in the business, the

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interest of the company's owners or shareholders are represented by them. Commonly, the rules
of these professional accountants include: organizational governance such as accounting and
improving the annual budget of a company to the stakeholders for the performance of the
company; appointment of the chief executive; and determination of the compensation of the
management. When a chief financial officer is a professional accountant, they usually have the
oversight of all the matters related to the financial health of a company. This would include
driving and creating the strategic direction of the organization to create, analyse and
communicate financial data and information. When an internal auditor is also professional
accountant, the management of a company is provided with independent assurance by them
regarding the effective operations of the internal control, governance and risk management of the
business organisation. Advice regarding the areas for potential improvements is also provided by
them. In the public sector, the government professional accountants help in shaping the financial
policies which usually have a large impact on the lives of the common people (Lovell and
MacKenzie, 2011). The accountants involved in the academic sector attached with the vital role
of conveying are communicating the skills, ethical underpinnings and deep knowledge of the
accounting profession to the next or upcoming generation (Greenwood, Suddaby and Hinings,
2002).
Group Dynamics
When numerous individuals come together for accomplishing one objective or a particular task,
it can be defined as a group (Forsyth, 2018). The behavioral and the attitudinal characteristics of
a group are known as the group dynamics (Levi, 2015). The primary concern of group dynamics
is related to the way groups, their processes and structures are formed, and the way they
function. Groups are common organisational entity in an organisational setting. The study of
group dynamics and groups is a vital area of study in the organisational behaviour. Group
dynamics is related to how and why groups are developed, as applied to the group development
(Nagy, Akos, Biro and Vicsek, 2010). There are many theories that explain the reason for the
development of groups. As suggested by a classic theory that was developed by George Homans,
groups develop on the basis of interactions, sentiments and activities (Homans, 2017). The
theory basically means that when common activities are shared by individuals, more interaction
would take place between them and they would develop certain attitudes, either positive or