Management Accountant

Why Management Accountants are Important for Business?

The bean counter – a role typically associated with Management Accountants in many organizations. But recently the professional role of Management Accountants is evolving from passively seen bean counter to a more effective modern-day business partner. 

The bean-counter role indicates a conventional cost controller, a data accumulator, a data analyst, or a mere reporter on operational performance indicators involving numbers or key financial pointers. It represents the Management Accountant more in a policing role rather than an engaging partner necessary as a team player to work for the accomplishment of strategic business objectives

Emerging Trends

The emerging trends in the profession show that Management Accountants are extensively required and are turning to assume a more robust approach directed towards business goals in various organizations. Flowing from traditional functionaries to becoming business partners, Management Accountants are embracing a business-oriented outlook in their perceptual as well as work settings. 

The modern-day partnering approach is more business-oriented, strategy-focused, and expansively integrative. It requires the management accounting function to be able to use accounting information in line with non-financial performance in order to draw authentic and holistic conclusions for potent decision-making.

Therefore, by adopting new approaches in the profession, the role of Management Accountants is becoming more aligned with the strategic objectives of the organizations. It results in the creation of value, greater efficiency, collaborative efforts, and improvement in performance.

Management Accountants and Independence

One of the concerns about a more engaging role of Management Accountants in business could be the compromise on the level of independence associated with their traditional role. However, research has revealed that the level of independence usually labeled with the traditional role of Management Accountants turns them into policing or auditing characters resulting in complete or partial isolation of the profession from business contacts.

As a result, instead of taking as partners in the decision-making process, they are narrowly perceived as information providers or accounting data analysts. The bean-counter role is often stigmatized with a negative image resulting in undervaluing of the role of Management Accountants. 

On the contrary, the modern business-oriented approach results in engagement, elimination of communication barriers, and high perceived value giving more regard to the position of the Management Accountants. In this way, they gain high esteem and certainly become better to act more independently in analyzing information or business conditions. Therefore, the Management Accountant is becoming a more sought-after position. 

Management Accountants with high esteem and prestigious positioning more often exercise job discretion and conveniently adopt job-crafting behavior in order to make their work engaging and attractive. This helps them keep motivated and committed that ultimately benefits the businesses. 

Job discretion and job crafting are emerging trends in modern-day human resources helping employees to create more and more work for themselves and also to alter their task boundaries within the confinement of the broader work spectrum. Job crafting helps to create new work and to craft new ways of performing work. The concept is exactly true in the case of accepting Management Accountants as effective business partners. 

Conclusion

In this article, we have tried to explain the importance of management accountants and their duties in a few steps.

They ensure that all financial activities are done correctly and in accordance with the company’s policies. The performance of an effective management accountant is paramount for any business to thrive. So, if you want your firm to succeed long-term, start hiring good management accountants now. 

What are your views about the importance of management accountants in business? Share your thoughts and experiences in the comment section below for the benefit of our readers. 

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