International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

Strategic Management Accounting – A Strategic Role for Accountancy
Dr. Sean Stein Smith

As the business environment and competitive landscape continue to evolve at an accelerating rate the importance of developing and executing a strategic plan continues to increase. Effected by changes in the competitive and regulatory environments, organizations face a dual challenge. First, increased competition and scrutiny from both financial and non-financial stakeholders have dramatically increased both the type and the volume of information that organizations must produce to satisfy market requirements. Second, and arguably more important for organizations, is the growing importance corporate governance and sustainability, specifically the need for reporting and quantification standards. Addressing these challenges is the responsibility of the management accounting function; developing reports and communicating results is a traditional strength that must be expanded and leveraged to address the challenges of this new business environment. Accounting professionals, increasingly tasked with broader responsibilities and an increased scope of organizational duties, must embrace the challenging nature of the profession into that of strategic partner. Adopting a strategic headset, and aligning professional and organizational initiatives with strategic thinking and analysis presents both an opportunity and a challenge. Individuals in the accounting and finance professions must exercise creativity, innovative thinking, and grow as the profession transitions from reporting experts to strategic business partner.

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