The Role Of The Management Accountant Accounting Essay

At present, there is an statement about whether the function of the direction comptroller in administrations has changed when the concern environment changed at the same clip. The function of direction comptrollers in administrations was measured by: ( a ) their accomplishments demands, and ( B ) the manner other directors perceive them in their administrations ( Tsamenyi and Yazfifar, 2005 ) .In this essay, the writer referred to a great figure of literatures about this subject, and eventually came to a decision that the function of direction comptroller in administrations has changed significantly accompanied by the alterations of concern environment over these old ages. Recently, direction comptrollers in administrations did non merely put to death the traditional maps such as accretion, analysis and readying, and play the function like the “ bean counter ” and gathers of information that is utile and necessary for decision-makers ( Choi, 2002 ) . With the developments and alterations of the concern environment in some decennaries, the function of direction comptroller has changed into “ concern spouse ” and “ strategic spouse ” , and taken the charge of reading, rating, control and engagement in decision-making ( Choi, 2002 ) .

The analysis


The position of the function of direction comptroller in administrations has been paid adequate attendings in these old ages. Not merely academic and professional staff made a immense figure of accounting literatures, but besides many related people that are non in accounting topic provided progressively figure of research groundss of this country. They all eventually came to a point that the altering concern environment caused the alteration of the function of direction comptroller in administrations. So the first facet to research the subject is to measure the alterations of the concern environment. Further more, the 2nd facet is to happen the alterations of the function of direction comptroller in administrations. At last, the decision of this essay is to construct a span between the altering concern environment and the alterations of the function of direction comptroller in administrations.

We will write a custom essay sample on
The Role Of The Management Accountant Accounting Essay
or any similar topic only for you
Order now

The altering concern environment

If people tend to do a clear position of the alteration, they should acquire a specific understand of the concern and concern environment. As a sequence, this study ab initio concentrated on the altering concern environment. Harmonizing to the direction accounting professionals declared, the rule issue that caused the alteration of the function of direction comptroller in corporation is the progressively ferocious competition ( Hoque et al. , 2001 ; Krishnan et al. , 2002 ) .The new concern environment merely reflected this sort of competition. In the new concern environment, it gave the look to intensifying globalisation, fresh ordinances that focused on corporate administration, mutable markets, new organisational constructions, amalgamations and acquisitions, new direction patterns, rapid reaction velocity, progressively intelligent information engineering and a possible tendency of a more elastic corporation construction because of the demand to cover with market requisition and more ( Askary et al,2008 ) . In some studies, people see the alterations of “ information engineering ” and “ organisational restructuring ” as the most two of import issues caused the alteration of the function of direction comptrollers in organisations. And “ new accounting package ” and “ new direction manner ” are other two important alteration drivers ( Tsamenyi and Yazfifar, 2005 ) .

For illustration, a important alteration of the concern environment is the alteration of direction accounting patterns. There are so many new direction accounting techniques had been innovated and implied in concern these old ages. Some experts claimed that the alterations of direction accounting patterns are administrative inventions ( Hart and Roslender, 2002 ) . Whether these alterations could be successful or non, they are depended on how good behavioural and organisational deductions are dealt with. So the procedure of these alterations meets a immense organisational emphasis, clang and rebellion. And these negative issues may do failure of the invention ( Hart and Roslender, 2002 ) . In this country, the most of import issue is the invention of Strategic Management Accounting ( SMA ) . SMA was considered as the common-sense attack to the affairs emerged in a changing concern environment ( Hart and Roslender, 2002 ) . Some experts claimed comptrollers did a big figure of benefits by utilizing SMA to scheme preparation and execution. Some research workers suggested comptrollers to alter their positions from traditional accounting issues to concern more concern factors. Some individuals seen SMA was a tool to assist comptrollers advance their position in organisations ( Hart and Roslender, 2002 ) . As a so hot subject, there is no a common conceptual model about SMA. One definition ( Hart and Roslender, 2002 ) accepted by some people is:

“ The proviso and analysis of direction accounting informations about a concern and its rivals for usage in developing and supervising the concern scheme, peculiarly comparative degrees and tendencies in existent costs and monetary values, volume, market portion, hard currency flow and the proportion demanded of a house ‘s entire resources. ”

In 1981 that SMA was found, Simmonds set a position that the function of direction comptrollers were changed from a pure fiscal worker to a more of import place that need to derive a concern sentiment and keep the ability of the understand of concern environment and represent alterations in competitory place to senior direction ( Hart and Roslender, 2002 ) .

To exemplify, intelligent information development is a more of import ground that caused the alteration non merely in the past, but besides it is traveling to act upon the function of direction comptroller in companies in the hereafter even for of all time ( Management Accounting, 1998 ) . Meanwhile, the development of intelligent information occurred in every industry, concern facet and state. It is an obvious tendency that computing machines cover with more day-to-day work ( Management Accounting, 1998 ) . Peoples who can keep the ability to larn and get the hang IT and use advantages of IT to daily plants to the full, they will derive benefits of a broader and more flexible function, with bigger direction duties, and possibly more wagess, and more often fall in in concern scheme ( Management Accounting, 1998 ) . The application of IT into concern work impacted non merely on the function of direction comptroller in organisations, but besides on the relationship between direction accounting and other map ( Management Accounting, 1998 ) .

There is another specific illustration that could be seen as the impact of the altering concern environment caused on the function of direction comptroller. Enterprise Resource Planning ( ERP ) systems are the main invention in the concern universe as an information engineering for companies to acquire information in 1990 ( Kholeif and Jack, 2007 ) . As a consequence, there are a good many of researches to look into how the ERP systems to act upon direction comptroller on work. One determination in researches of this subject is the function of direction comptrollers in ERP environments seems to be capable to hybridization, that means the function broadens to include other concern and information motion or other people broaden their functions to take charges that accountant do ( Kholeif and Jack, 2007 ) . Consequently, the function of direction comptrollers is altering from those traditional maps towards “ concern spouse ” and “ strategic spouse ” . In malice of this, the usage of ERP system yet may ache the function of direction comptroller as information providers because the main directors can derive information they need straight without through accountant study ( Kholeif and Jack, 2007 ) .

In recent old ages, there is another vitally of import development construct in direction accounting called “ Balanced Scorecard ” . It contains two facets of alterations compared with old accounting system. At one manus, it introduced an incorporation of non-financial steps. At the other manus, it joined these steps with organizational scheme ( Choi and Latshaw, 2002 ) . This means the top direction of corporations could utilize “ Balanced Scorecard ” to beef up schemes, introduce these schemes to all of the company, and assess the administration ‘s procedure that pursues the ends of the schemes. At the same clip, direction comptrollers besides adopt this construct in their plants. This helps them heighten their position in companies as of import direction squad spouses.

The alterations of the function of direction comptroller in organisations

It is a good known statement that direction accounting patterns that chiefly include direction accounting techniques, information and/or systems have about kept been stable in the greater portion of a century ( Johansson, 1990 ; Kaplan, 1986b ) . As a consequence, it can be concluded that traditional direction accounting patterns lost the ability of deriving utile information and giving full drama in direction decision-making in the changing concern environment. With the altering concern environment, the function of direction comptrollers in organisations besides changed evidently.

One obvious illustration of the alterations of t direction comptrollers caused by the invention of “ Balanced Scorecard ” could be found in the article “ Counting More, Counting Less: Transformations in the Management Accounting Profession. “ ( Choi and Latshaw, 2002 ) In the essay, the writers compared differences of direction accounting professions between 1995 and 1999 about comptrollers in IMA ( Institute of Management Accountants ) . They found some facets of the alterations. First, there are more people considered direction comptrollers derive more benefits for corporations in 1999 than the figure in 1995 ( Choi and Latshaw, 2002 ) . Second, more workers were cognizant that direction comptrollers were non merely worked for accounting section, they besides worked in operating subdivisions as portion of concern squad ( Choi and Latshaw, 2002 ) . Third, professors searched that direction comptrollers used more clip in internal consulting and the most of import action for them is the strategic planning ( Choi and Latshaw, 2002 ) . At last, people claimed that direction comptrollers in companies took charges of both “ concern spouse ” and “ strategic spouse ” . The critical ground of these alterations is that direction comptrollers in administrations take usage of “ Balance Scorecard ” as a powerful tool to demo their abilities to senior directors and strengthen their function as strategic spouses ( Choi and Latshaw, 2002 ) .

With the outgrowth of a specific accounting pattern called Strategic Management Accounting ( SMA ) , the function of direction comptrollers besides greeted clear alterations. From the research of Bhimani and Bromwich, there two major ways of strategic direction accounting: “ One tends to be the merchandise attributes provided by a company ‘s merchandises ; the other is to be the maps in the value concatenation which provide value to the consumer ” ( Bromwich & A ; Bhimani, 1994 ) . Harmonizing to findings of Inman ( 1999 ) , there are some points of differences between traditional and strategic direction accounting: The first important difference is the manner that how cost should be cost ; the 2nd difference is the cost analysis ends ; the last difference is the cost behaviour. SMA put accent on the comparative cost place ; the attack a corporate may maintain a continual cost advantages and costs of distinction. As a consequence, the new sort of accounting pattern requires direction comptrollers to derive more abilities and broaden their skyline from their usual work, put more eyes on general direction, schemes doing and implement, selling and merchandise development ( Hart and Roslender, 2002 ) .

In modern society, intelligent information development is a common driver caused alterations in many countries. The function of direction comptrollers in organisations besides changed with this tendency. If direction comptrollers want to be competent at their places, they should possess the ability to remain in front of alteration. They need to cognize good the latest information engineering package, as the same clip acquire a comprehensive comprehension of the concern ( Anastas, 1997 ) . Consequently, there are some alterations and tendencies happened for direction comptrollers. The first tendency was more and more direction comptrollers became senior directors such as main executive officers or head operating officers, and the duty of comptrollers besides changed from merely analysis of past to strategic planning ( Anastas, 1997 ) . The ground of this phenomenon was because of the ability of comptrollers that they can interpret fiscal informations and consequences to strategic planning word. The 2nd alteration was under the force per unit area of the development of information engineering, direction comptrollers became advisers or internal advisers ( Anastas, 1997 ) . Accountants now join in the activities such as making schemes and recommendations to act upon direction determinations. Management comptrollers play the function as a pivot among different sections. Heading comptrollers are the centre point to guarantee companies on path. The 3rd alteration is direction comptrollers progressively involved in decision-making activities ( Anastas, 1997 ) . They no longer merely make book-keeping ; they besides make determinations for the whole company schemes. The forth alteration is direction comptrollers became information directors because they are ever the first consumers of new engineering ( Anastas, 1997 ) . As a consequence, comptrollers normally adjusted more rapidly and swimmingly to new information engineering than other sections in organisations. Accountants used the new engineering to transform their eyes from looking backward to looking frontward. So comptrollers could utilize new engineering to cipher and calculate future environment the corporation will run into. Even sometimes comptrollers became Sellerss instead that newsmans as the ground that they can sell the suggestions they got from the new information about what to make in the hereafter ( Anastas, 1997 ) .


As been found the alterations of concern environment and the alterations of the function of direction comptrollers in organisations and the relationship between two sorts of alterations, the decision could be gained. As a clear research determination, the major alterations in concern environment are these facets: communications and information engineering, organizational restructuring, globalization and internationalization and betterments and new inventions of direction accounting patterns ( Management Accounting, 1998 ) . And the major maps of direction comptrollers these old ages focused on: design and better the information systems of companies ( particularly understand and make usage of IT system ) , give suggestions for concern undertakings, articulation in strategic planning ( program and operate concern and selling aims ) , trade with client ‘s demands and revenue enhancement affairs ( Management Accounting, 1998 ) . To summarize these facets in some common and acute points, the alterations of the function of direction comptrollers in administrations are chiefly as these respects: First, the function of direction comptrollers has been changed to concern spouses in corporations. They joined in more and more activities in functional sections, and they besides participated in the program and renew of information. Second, direction comptrollers progressively move their location from offices towards more near to workss. Thus they can acquire more specifically understanding of the concern. This is besides a clear point about comptrollers now play the function as concern spouses and they normally joined in a undertaking from the merely beginning and determination of consequences, and take charge of all results. Third, direction comptrollers now of course are seen as members of direction squad and concern directors because their alone cognition of finance and accounting can take immense benefits for direction actions ( O’Dea and Pierce, 2003 ) . In one sentence, the function of the direction comptroller has changed in recent old ages from traditional accounting maps to that of a strategic contriver and a concern spouse in the changing concern environment.


  • Anastas.M. ( 1997 ) The altering universe of direction accounting and fiscal direction. Journal of Management accounting. .48-51.
  • Askarany.D et Al. ( 2008 ) Management Accountants ‘ Role in Dependent and Independent Companies: Does Ownership Matter? Journal of Accounting – Business & A ; Management. 15 ( 2 ) , .1-21.
  • Bhimani, A. and Keshtvarz, M. H. ( 1999 ) . British direction comptrollers: strategically oriented. Journal of Cost Management. 13 ( 2 ) , .25-31.
  • Cable.R.J et Al. ( 2009 ) Teaching future direction comptrollers. Journal of Management accounting quarterly. 10 ( 4 ) , .44-50.
  • Choi.Y and Latshaw.C.A. ( 2002 ) The Balanced Scorecard and the Accountant as a Valued “ Strategic Partner ” . Journal of Review of Business. .27-29.
  • Hart.S.J and Roslender.R. ( 2002 ) Integrating Management accounting and selling in the chase of competitory advantage: the instance for strategic direction accounting. Journal of Critical Perspectives on Accounting. 13, .255-277.
  • Johansson, H. ( 1990 ) . Accounting System Changes. Journal of Management Accounting. .37-41.
  • Hoque, Z. , Mia, L. and Manzurul, A. ( 2001 ) . Market competition, computer-aided fabrication and usage of multiple public presentation steps: an empirical survey. Journal of British Accounting Review. 33 ( 1 ) , .23-45.
  • Kaplan, R. S. ( 1986b ) The Role for Empirical Research in Management Accounting. Journal of Accounting, Organizations and Society. 11 ( 4 ) , .429-452.
  • Kholeif.A and Jack.L. ( 2008 ) Enterprise Resource Planning and a competition to restrict the function of direction comptrollers: A strong structuration position. Journal of Accounting Forum. 32, .30-45.
  • Management Accounting. ( 1998 ) The altering function of the direction comptroller and its deductions for making development. Journal of Management Accounting: Magazine for Chartered Management Accountants. 76 ( 8 ) , .68.
  • O’DEA.T and Pierce.B. ( 2001 ) Management accounting information and the demands of directors Perceptions of directors and comptrollers compared. Journal of The British Accounting Review. 35, .257-290.
  • Tayles.M and Ma.Y. ( 2009 ) On the outgrowth of strategic direction accounting: an institutional position. Journal of Accounting and Business Research. 39 ( 5 ) , .473-495.
  • Tsamenyi.M and Yazdifar.H. ( 2005 ) Management accounting alterations and the altering functions of direction comptrollers: a comparative analysis between dependant and independent organisations. Journal of Accounting & A ; Organizational. 1 ( 2 ) , .180-198.
  • Yazdifar. H Askarany. D Askary. S. ( 2008 ) , Management Accountants ‘ Role in Dependent and Independent Companies: Does Ownership Matter? Journal of Accounting – Business & A ; Management, 15 ( 2 ) , .1-21.

Hi there, would you like to get such a paper? How about receiving a customized one? Check it out