Look out, management accountants

Article Abstract:

Some business enterprises are employing five cost management techniques which are affecting the practice of management accountants. These techniques are based on the premise that the evolution of cost management will increase the importance of management accounting and lessen the need for management accountants. Six major changes in the practice of management accounting are expected given the emergence of these techniques. First, management accounting will gain more importance. Second, decentralization of the management accounting function is necessary to empower the cost management process. Third, the management accounting function lends a supportive rather than an active role. Fourth, management accountants can have a critical role in information systems development. Fifth, many cost management techniques do not depend on management accounting information. Sixth, the automation of management accounting systems lessens the need for management accountants.

Management, Cost (Economics), Costs (Economics)

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Family-owned businesses: a challenge for management accountants

Article Abstract:

The accounting profession has traditionally shied away from its responsibility to support management and stakeholders in making plans for wealth transfer in family-owned businesses. Estimates show that primary owners of almost all closely held and family-owned enterprises will either die or retire by the year 2005, resulting in the greatest intergenerational wealth transfer ever in history. Management accountants have a role to play in these succession events. They need to educate stakeholders and management on the potential consequences of the succession event and to make sure that succession planning is sufficiently included in financial statements. Although their people role will be questioned, management accountants should educate management and stakeholders about their importance in succession events.

Accounting and auditing, Family-owned business enterprises, Family-owned businesses, Succession planning (Business)

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Solutions in finance: the power triangle

Article Abstract:

The role of management accountants is undergoing a radical transformation with the help of technology. In the past, these professionals merely served as number crunchers who gathered, consolidated and reconciled data into dated reports. Fortunately, management accountants have transcended such a limiting job description and are now enjoying more decisionmaking powers. Behind this rejuvenation is a powerful computer technology that is based on client/server architecture, which facilitates real-time decisionmaking and multidimensional processing of transactions in an organization. Management accountants who want to take on more strategic responsibilities in their companies should be provided the same decision-support tools and information supplied to senior managers.

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