STRATEGIC MANAGEMENT ACCOUNTING

Strategic Management Accounting



Strategic Management Accounting

Introduction

The concept of Strategic Management Accounting has a lot of value in the business world. The role of Strategic Management Accounting has increased a lot over the past several years because of its association with the important decisions. There are many strategic accounting decisions which require considerable analysis. However, it is vital for the Senior Managers in the organization to prepare a suitable strategy to address the strategic matters related to Management Accounting. It is not the responsibility of the Accountants and Financial Managers because they are more concerned with the financial aspects of this concept. The statement that states Accountants and financial managers are mere bean-counters and cannot be expected to contribute to strategic thinking; neither do they possess the tools to enable them to do so. This statement will be discussed in detail in this topic. The detailed analysis of this statement will make it possible to reach to a conclusion in the end.

Role of the Accountants and Financial Managers

The role of the Accountants is concerned with the preparation of the Accounting statements that matters for the organization. The accountants have a set of data which is compiled with the help of Journals, Ledgers, Profit & Loss Account and Balance Sheet. Though, their role is not concerned with the analysis as they have basic information about the Accounting statements. On the same hand, the Financial Managers have a role to analyze and interpret the Accounting statements and Balance Sheets (Atrill, 2009, 136-278). The Financial Managers have an important role in any organization because their analysis proves to be quite useful for the Senior Managers. The Financial Managers have necessary skills for the analysis of the company's accounting statements and balance sheets. The Financial Managers assist the Senior Managers in making the important decisions related to the Management Accounting. The vital input provided by the Financial Managers to the Senior Managers has a lot of value because it makes it easier for them to make important strategic decisions. Therefore, this is the overall role of the Accountants and Financial Managers (Guilding, Cravens & Tayles, 2000, 113-351).

The role of Senior Managers

The role of Senior Managers is quite high for most of the organizations. The Senior Managers needs to have his contribution towards the Strategic Management Accounting. The Senior Managers is comprised of several people who have high experience in the organizational ...