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How Management Accountant Responsibilities Have Changed Over Time

In the late1980s a debate arose between the accountant practitioners as well as the academicians regarding the quality of the people who trained from the various management institutes including some of the best management and accounting schools. These students were not faring well in the actual job scenario.  The real reason behind the change was the exceptional and radical changes that were taking place in the actual work scenarios of the management accountants and the kind of training that they were receiving in the institutes. The curriculum being taught at the institute had remained unaltered since the past 60 years. As a result fearing that the management accounting might become redundant in the actual business scenario, the academicians revamped the course structures in the various institutes. As a result the management accountant responsibilities underwent a lot of change and have over the period of time gained a lot of importance.

The filed of accountancy is divided into various categories. The two most important categories are those of the financial accounting as well as the management accounting. Although they might seem similar but there is a lot of difference between the two. The financial accounting deals with the preparation of the financial reports that are meant for the outside agencies, whereas the management accounting responsibilities involves the preparation of the financial reports that are solely meant for the internal managers to enable them in taking informed decisions.

Some of the present day management accountant responsibilities include:

  1. The preparation of the financial reports that are meant for the internal managers and not for outsiders like the stock holders, share holders and others
  1. The management accountant prepares the reports that are future centric and not a presentation of the past financial dealings of the company
  1. To Perform variance alliances, reviewing as well as monitoring costs
The management accountant responsibilities are more focused towards steering the success of the business rather than focusing on the preparation of the reports based on the company’s past.