Management accountants and the system of management accounting have had a core importance in working and operations of the corporates. Over the years they have been fulfilling their traditional job requirements such as bookkeeping, recording and reporting financial information. It is believed that as over the years business and corporate world has evolved and gone through many changes and management accountants being part of this system would also face transformation in their roles. It is the versatility that is being demanded today therefore a professional cannot limit or restrict itself to its particular job. It is a fact that management accountants are performing multiple jobs as a result of the increasing competition in the labour market. Therefore the aim of this report is to highlight how the corporate world has evolved over the years; how it demands changes in the role of management accountant, what are the factors that have contributed to these changed roles and the decisions they have to make.
2. Factors influencing change in role of management accountants
The business world changes so have the roles of professionals that are involved in it however some are the factors that have necessitated the changes in the roles of management accountant they are discussed as follows:
The development in technology is seen to be rapid which results in the increasing usage of computers in keeping record, information storage and detecting issues. According to Kerby & Romine (2013), advanced software and ease in access to the internet have enabled management accountants to conduct more demanding analysis and decision-making. These software are often automated therefore it is required data entry and have made accounting departments more of an information providers rather participators in the decision-making. Therefore this advancement in technology requires the management accountant to modify their roles and gain some extra skills.
2.2 Increase in competition
Business world has seen exceptional rise in competition different strategies and steps are taken to respond and sustain in the market. The major focus of the organizations has been on increasing the production and quality of the products and services that they provide. This shift in priorities brought in the concept of re-engineering and this led to the downsizing that was and is seen as major cost reducing technique in the organizations (Kerby & Romine, 2013). It is believed that management accountants are seen as the non-productive departments and the personnel who are may not be able to change their focus from their traditional activities to more future-oriented activities that require the significant element of decision making. Adaptability has become a necessary part of survival not only for the management accountants but also for every professional.
It is not that competition has increased the threats for the management accountants it has also brought in many...