Top trends in management accounting need to be taken into account by professionals in this area of work. As a field, management accounting has evolved and come a long way in the last few decades. For this reason, professionals in this field need to be aware of the top trends in management accounting if they have to stay ahead of the curve. Disciplines or activities that constitute top trends in management accounting yesterday have become part of standard practice today. Likewise, what people consider as top trends in management accounting could become the same in the future.
First, what is management accounting? In simple terms, management accounting may be described as a discipline in which the professionals who work in it prepare, by deep research, and provide statistical information and reports for business managers. These reports serve as the basis to short and long-term business decisions that have a direct impact on the organization, which is why these inputs are extremely important for a business.
Top trends in management accounting go beyond financial numbers
Being aware of the top trends in management accounting is important for management accounting professionals because management accounting does not confine itself to just financial accounts. It goes beyond that. It takes finance, management, accounting and business techniques, trends and skills to prepare incisive reports, which add real value to any organization. Top trends in management accounting include trends that exist in the methods of doing all these.
So, when management accountants prepare the critical inputs for management, they cover all areas of business, and offer insightful advice to managers on the repercussions of taking crucial decisions, or evolving a business strategy or on the prospects of risk.
What are the top trends in management accounting?
As we just saw, top trends in management accounting are never static. They keep changing with the times. As of now, these are some of the popular top trends in management accounting:
- Channel and customer profitability reporting
- Integration of enterprise performance management methods (e.g. strategy maps, balanced scorecard)
- Driver-based rolling financial forecasts
- Application of analytics, and
- Co-existing methods, such as lean accounting.
If accounting professionals have to be successful in being important suppliers of information needed for business growth, they need have mastery of these and other top trends in management accounting. In addition, in order to be successful, accounting managers need to know how to convert costing principles, such as the causality principle, into practical practices with the supporting tools.
A training session to impart familiarity with the top trends in management accounting
The method of imbibing these practices and putting the top trends in management accounting into practice will be the learning a highly educative and valuable webinar from TrainHR, a leading provider of professional trainings for the human resources industry, will be offering.
At this webinar, Gary Cokins, an internationally recognized expert, speaker, and founder of Analytics-Based Performance Management, will be the speaker. In order to gain a complete learning of the ways of understanding and putting the top trends in management accounting into practice, just log on to http://www.trainhr.com/control/w_product/~product_id=701605LIVE/?wordpress-SEO to register.
This webinar has been approved for 1 HR (General) recertification credit hours toward aPHR, PHR, PHRca, SPHR, GPHR, PHRi and SPHRi recertification through HR Certification Institute (HRCI).
It is more than just numbers
At this session, Gary will show how management accounting is all about perceptiveness and interpretation rather than an accumulation of just numbers. He will show how reporting, validating and reporting data are more important than collecting and presenting figures. This session on top trends in management accounting will equip participants the discernment needed for making sense of numbers, charts and diagrams to present crucial information for management in the backdrop of uncertainties, complexities and volatilities in the business environment.
Gary will cover the following areas at this session on the top trends in management accounting:
- The expansion from product costing to include channel and customer profitability reporting and analysis
- The integration of managerial accounting with other enterprise and corporate performance management (EPM/CPM) methods (e.g., the balanced scorecard, incentive compensation, risk management, supply chain management)
- The shift from historical reporting to predictive accounting (e.g., marginal/incremental costing; rolling financial forecasts, performance-based and driver-based budgeting, customer lifetime value [CLV])
- Imbedding analytics into managerial accounting (e.g., correlation and segmentation analysis, recursive partitioning with decision trees)
- Acceptance of two or more co-existing managerial accounting methods
- Chargebacks to internal users and service level agreements of information technology (IT) and shared services
- Recognition of barriers slowing the adoption rate of advanced managerial accounting (e.g., resistance to change, being held accountable, weak leadership) to gain buy-in.