Question

QUESTION THREE The Management Accountants are no longer just number-crunchers; they have moved across performance. They are now information facilitators, rather than just information providers a functional lines in the pursuit of relevance and value. They are more than just a scorekeeper of past facilitate management actions, instead of just evaluating and controlling" Accountants bring unique skills to the business adviser role, as they are traditional information providers, competent in understanding financial information mechanisms and perceived to bring an independent, objective and credible approach. To maintain this advisory position, accountants must provide a value-added service in areas such as strategic business planning, customer profitability management, revenue generation strategies, cost , disciplined in the use of control management, information management, competitive intelligence, forecasting decision analysis, productivity improvements and cash flow maximization" You are required to write a report to the management on "role of the management accountants in modern organization". Your report may include following areas. - Traditional skills required: Technical skills, Analytical skills, and Interpersonal skills. - Contemporary tools and techniques of Management 2 2 8 (Total 25 Marks) Accountants. - Key challenges faced by Management Accountants

Answer 1

Hey, it will not be possible to write everything in detail. Though I will give you pointers on which you can build your answers upon

Management Accounts hold a position from which they can drive the business strategies. They handle all the important financial matters e.g. budgeting, MIS reports, fund plans etc. They provide insights by using analytical tools and create value for the organisation. The role of management accountant is explained in brief below

The Traditional Role

1. MIS Reports
- This is their primary task. Providing periodic reports to management in edible format.
- Highlighting the key concerns and KPIs (Key Performance Indicators)

2. Performance Management
- Strategy formulation vs implementation (Gap analysis)
- Corrective actions to fulfill the gap

3. Risk Management
- Identifying and analyzing internal as well as external risk
- Prepare Plan of action to mitigate or cover the risks

4. Cross Functional Role
- Driving the change throughout the organisation
- Collating and forming cross functional teams to achieve the goals (Interpersonal Skill)

The Modern Role

1. Accounts Controller
- Determine and define the Chart of Accounts and analyzing it on routine basis to ensure smooth operations

2. Planning
- Making budgets and forecasting and planning
- Evaluating new business ventures

3. MIS
- Same as Above

4. Capital
- Managing funds by optimizing capital and debt ratio
- Fund raising

5. Top Management Involvement
- Involved in strategic meetings to discuss the procedures
- Opinion matters most in the business structure and financial administration

6. Control
- Actual vs budget analysis
- GAP analysis
- Departmental Reviews

7. Taking Call
- Involved in Decision on things like products, sales mix, pricing