Management Accounting Feed

management accounting

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.

 

 

 

 

 

 

 

 

 

 


 

Change: As Necessary as it’s Inevitable

Arleen Thomas Current Photo (2)At a state society member event in El Paso, Texas, an older gentleman told me about his daddy that had passed away 53 years ago, and if he were to come back today, he wouldn’t understand very much about the modern world. He wouldn’t understand the phone he had in his pocket, the computer he used every day, or the car he drove. But, he went on to explain, he would understand that times change and we have to let them.

The profound respect this gentleman had for his father continues to resonate with me as does the lesson his father imparted: Change can be scary and intimidating, but it is necessary — and it’s inevitable.

Consider for a moment what happens if we don’t embrace change. Consider Kodak. It didn’t fail because it did not create a product for the digital age. In fact, Kodak invented the first digital camera in 1975. It failed because it didn’t embrace new technology and adapt to a marketplace with new consumer attitudes.

There are many other examples, of course. The point is flexibility and adaptability are integral to remaining relevant. You need to focus on your market, your surroundings, and what your customers need in order to succeed.

That’s what the AICPA and The Chartered Institute of Management Accountants (CIMA) have done with a proposal to create a new accounting association to represent and advocate for the entire accounting profession, while preserving the member bodies of both organizations. The AICPA Board of Directors, governing Council, Business and Industry Executive Committee and Government Performance and Accountability Committee have all endorsed the proposal and 52 state societies have passed resolutions of support. It also has broad support from finance and firm leaders across the profession. Now they’re asking for you to vote ‘yes.’

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Management Accounting for a Healthy Bottom Line

Natural Food is a Natural Fit for Shan Staka

Shan StakaShan was brought up with respect for healthy food and living that influences him in his role as CFO of Western Foods, a gluten-free facility in Woodland, Calif. The company makes flour from rice and ancient grains like millet, sorghum and amaranth.  In this AICPA Insights profile, we look at what prepared Shan to guide the operations of a growing natural foods enterprise.

Tell me about Western Foods and your role there.
The enterprise started five years ago and grew so fast that we were maximizing our capacity by year three. So we put forth additional resources and equipment to increase the production level, which has led to incredible growth. I am planning, forecasting and implementing financials to get the best use of those investments in Western Foods.

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Five Ways Finance Pros Can Use Data to Unlock Business Opportunities

Unlock businessMore than 90 percent of finance professionals agree that finance has an essential role to play in helping their organizations benefit from data-related projects. However, organizations looking to use data to its full potential could face a steep learning curve.  In the CGMA report, From Insight to Impact – Unlocking Opportunities in Big Data, the AICPA and CIMA asked more than 2,000 finance professionals around the world about the role of finance in turning data into insights to maximize commercial opportunities. While 87 percent said big data and better analytics will change the way business is done over the next 10 years, 86 percent said their businesses are struggling to get valuable insight from data.

A few months back, I had the opportunity to listen in on a roundtable discussion with CEOs from some major multinationals about the need to make their organizations more data-centric—and the role of the CFO in this endeavor.

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Scuba Diving and Risk Mitigation: One CFO’s Perspective

CGMA-Fandango-RobLeffCFO-Photos - Rob Leff011What do swimming with sharks and being a CFO in digital technology have in common? According to Rob Leff, CPA, CGMA, CFO of Fandango, both require risk management techniques. In this AICPA Insights Member Spotlight, we find out how Rob is using his management accounting skills to excel in a field that is changing everything.

Tell me about your day-to-day responsibilities.

My role is multi-faceted: It includes the traditional finance and accounting that most CFOs have and also responsibilities that wouldn’t necessarily fall under the official CFO role, such as mergers and acquisitions and business intelligence. Business intelligence includes business analytics and business intelligence reporting, which is data warehousing, database management and more. Fandango is a digital business and the digital space is constantly evolving and changing with new technologies and partners. Strategically, I partner with our president and executive team on the decisions of the organization. We work together on deciding where we’re going to take the company.

How is your role different from the typical CFO?

One of my goals has been to go beyond the job description and add value to the organization. I’m always evaluating the buy, rent, or build scenarios. If there’s an area of business that we want to expand into, I’ll conduct an analysis with the executive team: What would it take to build it ourselves? Or, are there companies we can acquire to accelerate the time to market? Or, could we “rent” [by building] a commercial relationship instead of buying it? I’m constantly evaluating opportunities to grow Fandango. With all of those functions, I'm able to leverage my experience and partner with the executive management team to drive the business forward.

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Member Profile: Rebecca McNeil, CPA, CGMA

Rebecca McNeilRebecca McNeil, CPA, CGMA is the chief financial officer of The Arts Finance Cohort, a collaboration between five Pittsburgh-based arts organizations including a theater company, a performing arts venue, a community arts space and ceramic studio, a glass studio and a crafts center. As a shared CFO, she provides strategic and operational financial expertise the groups could not afford individually. Her task is to move the organizations beyond year-to-year, break-even operations to long-term sustainability, as she helps each create a capitalization plan. McNeil is also a classically trained clarinet player. In this AICPA Insights Member Spotlight, we find out how Rebecca is using her management accounting skills to help an industry that she is passionate about: the arts.

1. Tell me about your day-to-day responsibilities.

There’s a wide variety of work. I might review one group’s [IRS] 990 and make corrections to the form, perform current-year projections for another group and work on policies and procedures for another. For some organizations, I'm providing higher-level oversight and strategic planning advice and for others I'm offering more upper-level staff support by updating their record-keeping. I have to evaluate with each organization based on the staff they have in place.

2. What are your direct areas of responsibility?

My job is to not just show the numbers, but to tell the story of the organization through the numbers. I’ve redrafted nearly every organization’s financial statements at this point. I’m trying to get more clarity on the numbers and present them in a way that makes sense.

There’s also been some education for the organizations on their financial statements so they can understand where their focus should be. I’m trying to help them manage their cash flow while understanding how much fundraising they need to do. We’re trying to get realistic, achievable budgets, and in some cases that requires resetting the budget process.

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