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| CGMA A new global designation for management accountants. A joint venture between AICPA and CIMA |
What does a management accountant do? What value do they add to business and management decision-making? Is a management accountant's work all about costing and budgeting? How boring, you might say?
The latest joint publication from the American Institute of Certified Practising Accountants (AICPA) the Chartered Institute of Management Accountants (CIMA) attempts to shed some light on value of modern management accounting. This document (How Management Accounting Drives Sustainable Success) outlines that the value of management accounting lies in its capacity to combine accounting, finance and management skills and knowledge for superior business intelligence and strategic advice. Management accountants perform many important roles in explaining, interpreting, advising on the financial and other implications of certain business decisions, strategic choices, new project possibilities, expenditure and resource allocation, and many other things.
To effectively carry out these responsibilities, management accountants not only need strong accounting, finance and business-related knowledge. They also need to be able to effectively analyse and synthesise financial and other information, think strategically, consider implications of risk and uncertainty, imagine and forecast future possibilities, and communicate their intelligence to a broad corporate audience.
What is your understanding of management accounting? Does it accord with my summary? Is it the type of role you'd be interested in? Let me know your thoughts.
In recognition of the important role management accounting intelligence plays in the modern business environment, the AICPA and CIMA have joined forces to introduce the Chartered Global Management Accountant (CGMA) designation. you can find out more about this new global designation here. (Note: this is not meant to be a 'sales pitch' - this link is merely provided for your information.)
What is your understanding of management accounting? Does it accord with my summary? Is it the type of role you'd be interested in? Let me know your thoughts.
