Management accounting deals with the use of accounting information to managers within an organization. Management accounting provides managers with necessary information to make informed business decisions. Management accounting is essential for an organization to be better equipped and control functions.
The strength of the tallest buildings lies within their foundations. As the CGMA designation continues to grow, I’d like to tell you a little about the foundation that makes it so strong.
The CGMA designation was created to help people and businesses succeed. As we head towards 2015, there are a several major releases from the AICPA and CIMA, culminating in a universal exam in January 2015. These releases are the foundational building blocks of the designation.
Like so many of you, I am passionate about both leadership and learning. Recently, the thought struck me that on occasion, my desire for personal and professional growth might actually get in the way of my leadership and learning.
I’m sure you can relate to the feeling of “sprinting to the finish” on various projects. But how often do you really feel like you’ve reached the finish line? Instead, what if we’re actually like hamsters on a wheel, essentially stuck in one place? This was an “ah ha” moment for me—a realization that my logical mind had some trouble laying bare.
What opportunities and challenges does the head of the AICPA foresee for the CPA profession in 2014? What were the profession’s significant achievements in 2013? Barry C. Melancon, CPA, CGMA, AICPA president and CEO, answers these questions and offers insights on how the profession will continue to adapt to today’s changing environment, addressing clients’ and employer’s needs. Citing successes with regulation, legislation, recruitment and positioning the profession for the future, Barry strongly believes CPAs will build on a solid foundation.
1. What were the AICPA’s legislative or regulatory priorities this past year and what’s in store for 2014?
We continued to have success in the advocacy area in 2013. In one significant victory for the profession and the public, the Securities and Exchange Commission exempted CPAs from registration as municipal advisers when they are providing certain accounting or attest services. We urged the SEC to exempt CPAs from the definition of municipal advisers after it had indicated that anyone performing accounting services for governments would be defined as a “municipal adviser.” It was critical that our voices be heard on this issue because such a broad definition would have made it more difficult for CPAs to serve governments and potential investors without taking on unnecessary and duplicative costs or compliance burdens.
The end of the year is always a good time to reflect on the past and consider the future. So perhaps it’s no surprise that the latest AICPA Business and Industry Economic Outlook Survey has inspired me to share some of my reflections and thoughts with you.
Thinking back to the fourth quarter of 2012, CPAs in industry were deeply concerned about the economy, especially with the “fiscal cliff” looming large. Fortunately, we had a last minute resolution to the dilemma on December 31, 2012 and concerns about the overall economy and politics abated somewhat in the first half of 2013. Optimism about the US economy improved, and the number of CPAs saying they were optimistic about their companies and having plans to expand also increased.
I recently watched a new video featuring Dan Crumb, CPA, CGMA and CFO of the NFL Kansas City Chiefs. The video brings to life one of so many unique paths for CGMA designation holders. Dan says that he never thought he’d work for a football team. Now, as the Chiefs’ CFO, he leads finance, IT and the ticket office. His job is to make sure that all systems are functioning 100% of the time so that the Chiefs can focus on football.