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.












AICPA Accounting Competition Challenges Undergraduates

I’m a pretty competitive person. Whether it’s pickup soccer, playing against my friends in our fantasy football league, or a game of Yahtzee with my wife – I enjoy the thrill of competition. The process of giving it my all is one of the things that keeps me motivated in both my professional and personal lives.

In the spirit of competition, the American Institute of CPAs recently announced the opening of the 6th annual AICPA Accounting Competition. This year, the AICPA is challenging undergraduate students to think like management accountants as they help a business hone its strategic plan. This means students will be analyzing complex financial issues and business operations in the context of the market environment and recommending strategies for growth and sustained success.

The competition has a number of different steps. Fifteen teams will be selected from the first-round submissions as the semi-finalists for the competition. The top three teams will each earn $10,000 as well as an opportunity to present their cases to an executive panel of judges at the AICPA’s offices in North Carolina. Faculty advisors will accompany their teams to support them as they present. The teams will compete for a first place prize of $5,000, a second place prize of $3,000 or a third place prize of $2,000 to be awarded to their schools.

With the deadline for first-round submissions coming up soon (2:59 pm ET on September 28), I sat down with AICPA’s Erin Carson, Manager of Student Recruitment and Engagement, for more details on the competition and what students need to know to put their team in a position to succeed. 

Case Competition Pyramid Infographic-02

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In the News: CPAs in the Corner Offices Increasingly Concerned about U.S. Economy

Business executives are increasingly less optimistic about the state of the U.S. economy. That’s according to the 3rd Quarter Economic Outlook Survey, a poll of AICPA members serving as CEOs, CFOs and other senior accounting positions.

The survey, which was released late last week, found that respondents who were optimistic dipped below 50 percent--to 48 percent--for the first time since early 2014. The impact of worldwide economic slowdown and domestic regulatory concerns helped fueled this slide.

EOSThe CPA Outlook Index -- a comprehensive gauge of executive sentiment within the AICPA survey -- fell one point in the third quarter to 71, the third consecutive drop from a post-recession high of 78 in the fourth quarter of 2014. The index is a composite of nine, equally weighted survey measures set on a scale of 0 to 100, with 50 considered neutral and greater numbers signifying positive sentiment. 


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How Our Partnership with CIMA Challenged My Thinking and Changed My Perspective

International perspectivIn 2012, the AICPA partnered with the Chartered Institute of Management Accountants (CIMA) to develop the Chartered Global Management Accountant designation. Since launch, more than 150,000 individuals have obtained the designation, making it the most popular management accounting designation worldwide and setting the new standard for global recognition of management accounting.

The joint venture between the AICPA and CIMA provides our organizations, respective leadership teams and employees with a unique opportunity to learn and grow, develop and nurture relationships with interesting and inspiring colleagues, face challenges and step outside of comfort zones from time to time. Additionally, as the relationship between the AICPA and CIMA grows, I’m seeing directly how partnerships allow us to capitalize on each other’s strengths and combine them to serve members—or clients—with excellence.

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5 Misconceptions Small Business Clients Have about Risk

CGMA REPORTWhen small business owners want or need to address risk, they often turn to their CPA as a trusted adviser for guidance. Risk is a significant issue for companies of all sizes; in a recent CGMA report, “Global State of Enterprise Risk Oversight, 2nd Edition,” the AICPA and its partner, the Chartered Institute of Management Accountants, examine the challenges facing large and small companies and consider how investment in enterprise risk management can strengthen an organization’s resiliency and agility. 

When organizations, particularly small ones, search for ways to minimize risk, there is a tremendous opportunity for CPAs to provide value. That’s because many companies misunderstand or underestimate the risk factors they face. Here is a look at five misconceptions that your small business clients may have about risk. 

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Risk Management: Increasingly Important and Vastly Underused

Risk managementAs the economy becomes more complex, organizations find themselves confronting an increasing array of risks that can significantly—and negatively—affect their businesses. To understand how organizations around the world manage emerging risks, the AICPA and CIMA, in conjunction with NC State University, surveyed more than 1,300 executives worldwide and released the CGMA report, Global State of Enterprise Risk Oversight: Similarities and Differences in Opportunities for Improvement.

Some of the key findings from the report highlight the need for the development of risk management leadership—particularly in light of the many types of risk an organization might face. Sixty percent of organizations acknowledge that they face an increasing number of risk issues, yet less than 35 percent have a formal enterprise risk management (ERM) program in place. In this same vein, 70 percent would not describe their risk management oversight as mature, and 40 percent or less are satisfied with risk exposure reporting to senior management.

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