SWOT management accountant
...untants with more time for analysis instead of routine tasks; however the overall effect is weighed up as being modest. There were three suggested reasons for this effect highlighted, firstly time needed to implement EPRS system, secondly the complexity of the system can hinder other operations and systems and thirdly they may play a stabilising rather than a changing role (Grandlund, 2001). Technology having advanced also now allows management accountants to access information online, there is no need to wait for periodic reports allowing them more time to focus on how the information can be used to the benefit of the organisation (Pierce, 2001;Vaivio, 1999; Scapens et al, 2003; Ezzamel et al, 1997). Technology and new techniques run hand in hand almost, systems such as ERP integrate advanced IT with new and traditional techniques (Grandlund, 2001; Scapens et al, 2003). An Irish study found companies who made use of new management accounting techniques also made greater use of the traditional ones. The conclusion was that companies were not looking to discard or replace traditional methods for new methods but were interested in supplementing (Pierce, 2001). Traditional methods of accounting include business performance evaluation, cost and financial control, interpreting and presenting the management accounts, and planning and budgeting. Some argue these are old techniques are too simplistic for today’s dynamic environment. However many academics and professionals disagree. One of the most fundamental findings in management accounting practice was by Burns et al (1999). They found rolling forecasts and strategic management accounting a crucial part of management accountant’s roles. They worked these new tools alongside traditional ones rather than replacing them. Traditional cost accounting methods are still powerful (Granlund, 2001), and tasks such as budgeting still remain popular (Burns et al 2001a; 2001b). Although they are used beside advanced, new methods such as rolling forecasts, balance scorecards and activity based costing (Scapens et al, 2003). However modern techniques such as activity based costing and strategic management are not being as widely used as expected (Burns et al, 2001b). Along with traditional, modern techniques there are also what is considered routine tasks, such as transaction processing and external reporting. These however have been diminished due to change in today’s organisations internal factors; these are now being outsourced (Burns et al, 1999; Burns et al, 2001a). Roles which were traditionally thought to have been management accounting roles are now considered as just management tasks, many managers due to new advanced technology are able to carry out their own variances, budgeting and forecasting (Grandlund, 2001). Strategic management accounting is a new concept which has been incorporated as one of the facets in the changing role of management accountants. A criticism made about management accountants was that they were too introspective. There was a growing need for them to broaden their array of information to cater for data associated with the organisations competitors and business environment, which would allow them to look at the overall direction the organisation, was going in (Clarke, 1995). Strategic management over the years has become a vital ingredient in the role of management accountancy; it has allowed managers to assess organisations performance, taking competitors and environment into account. It allows an organisation to assess its performance by taking into account factors such as new technological developments, customer preference changes, legal, political and demographic aspects. Allows competitor analysis to be carried out which, forms a crucial part of organisations strategies. The new market environment today pays close attention to elements such as price, quality, performance and after sales service; it does not purely focus on labour and production (Clarke, 1995; Grandlund et al, 2002). Technology also finds its way into strategic management as it is claimed that it enhances strategic development (Grandlund et al, 2002). A management accountant’s role today would be to make sound informed business decisions to maximise organisations financial performance, the techniques used whether traditional or modern must met needs to achieve organisations goals. Recent ERP technology has been criticised, for not being user friendly, yet its advantage is that it produces reports for performance quickly and efficiently, leaving the management accountant time to interpret various performance indicators and see how they relate to one another (Scapen et al, 2003). This new system is already said to be making managers more responsible for their financial performance. Activity based costing; a recent development in management accounting is also assists in improving financial performance (Grandlund, 2001). These new advanced techniques are of little benefit if used to produce historical reports, however in the light of new strategic management, forward thinking business mind and skilled knowledgeable user of new systems they are invaluable in assisting management accountants attain the new role they play today. In spite of this further exploration led to some researchers discovering that despite a rapid change in technologies and organisation environments over recent years there has been a slow uptake to new management accounting techniques (Granlund, 2001). “….it became increasingly clear that considerable change has taken place. But it is primarily change in the way management accounting is used, rather than change in management accounting systems and techniques per se” (Burns, Ezzamel and Scapen, 1999:28). The changing role of management accountant’s raises important issues concerning education and training. Cooper (1996) highlighted a prediction that in years to come there will be an increase for cost management information, however there will be a decentralisation of management accounting tasks. The decentring of accounting knowledge has given rise to managers performing tasks which were usually carried out by the management accountants (Burns et al, 1999). This leads onto the next very important issue of the pressure placed on management accountant’s to adapt to new changing work environments. Allot (2000) discussed how researchers believe there will be fewer accountants in the future, yet they will instead occupy senior management positions. So it can be argued that survival will be based upon adaptation, learning and development of new skills and technologies. Failure to acclimatize would ultimately lead to a career end. The changing nature of contemporary management accounting has important implications for the education and training of management accountant’s. There is always the need for sound financial knowledge, however not only do management accountant’s need to be experts in financial matters but they also need to develop their personal skills. An understanding of the business and strategic planning ca...