Why do companies need management accounting

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Finance is a job and management reflects wisdom. Enterprises have come to the fork in the road to continue financial accounting and the development of management accounting, and for the financial staff, it is not a left or right choice question, but forward or backward elimination match.

Into the data for financial accountants, into the data does not seem to be a new direction, especially accounting accounting is not always dealing with data? This is not the case, management data and accounting data are not equivalent to each other, but there is a huge difference.

Each company has the corresponding management costs, generally included in the overall "overhead" account, in the traditional analysis, the definition of the attributes of the overhead subject seems to be only related to the cost of administration, but in fact, these management costs are really administrative departments in the use of the administrative department, the administrative department of the people can effectively control this part of the funds? This part of the funds for effective control? Obviously not. In terms of travel expenses, any department has business trips, but business trips based on business development activities, business trips based on network operation and maintenance and business trips based on human resource management are all included in the "management expenses" accounting on traditional accounting subjects, and there is no difference. In Guangxi Unicom's financial management division, costs*** were divided into five categories, such as travel costs based on business development activities were reclustered into "market line costs", travel based on network operation and maintenance was categorized into "network transportation line costs", and travel costs based on human resources management were categorized into "management costs". Travel costs based on human resource management are categorized as "administrative line costs".

The traditional accounting data such as this will be re-clustered to show that it is closer to the business activities themselves and the needs of the management, and better reflect the full input-output relationship of each management line in the enterprise, thus promoting the intrinsic mining of value. Moreover, for business departments, such accounting obviously makes them enhance the sense of responsibility for cost control. Previously, because a significant portion of the costs are generalized accounting collection, it is inevitable that the "pot of rice" situation, the business sector to control the cost of consciousness will be relatively weak.

Into the process from the financial sector to the market sector, the difficulty is by no means less than a change of profession, however, in Guangxi Unicom there is such a successful case. This is the most typical case from an ordinary financial personnel to grow into a managerial accountant.

"In the enterprise, especially the development of a certain size and degree of state-owned enterprises, the business is very complex, the need for strong support in the background. In this context, often under-the-book approval processes within the enterprise are very common and complicated. If these approval processes are to be completed efficiently, there is a contradiction between management demands and financial control. This is because if you set up a lengthy approval process to achieve the goal, the efficiency will be greatly reduced, while if the approval process is too simple may lose the monitoring of risk, management accountants first need to crack this contradiction." Experts said.

This requires accounting people to consciously familiarize themselves with the processes and status of the entire company, design and constantly optimize the relevance and closed loop between each system, assess in advance the risks and vulnerabilities that may exist in the process, strengthen effective control initiatives, optimize the authorization system to improve efficiency, and so on.

Into the business in the eyes of the accounting people, the books are the foothold of financial management, a lot of analysis and management to start from the books, to become a managerial accountant to cross the books.

"Management accounting to do a better job of an important sign is that financial management can enter the business level, and has a certain right to speak, in the business model of the enterprise, business policy and other determining process should have the shadow of the financial, rather than that in the tail end stage of the business carried out by the financial sector as a firefighter or even sweeping the garbage role into the field. "

The 2014 IMA China Member Compensation Survey report shows that, globally, professionals holding CMA certifications earn at least one-third more than their peers who do not hold CMA certifications; young professionals (under the age of 29) benefit the most from the CMA certification program, with an average salary that is 96% higher than that of young professionals who do not hold certifications. In the foreign enterprise recruitment market, CMA is the recruitment of financial managers, financial director position of priority employment conditions, is the CEO, CFO position of a strong "knocking brick". Gordon CMA experts said, as CMA is the American Institute of Management Accountants (IMA) to adapt to the development of management accounting and the needs of international business launched, which is destined to CMA is always synchronized with the development of the enterprise, the certification of CMA can be competent such as cost accountants, management accountants, senior accountants, financial analysts, budget analysts, financial managers, finance directors, treasurers/group treasurers, chief financial officers (CFOs). The CMA can be used for positions such as cost accountant, management accountant, senior accountant, budget analyst, financial manager, financial controller, treasurer/group treasurer, chief financial officer (CFO), chief executive officer (CEO), and so on.

This will require the accounting people from the business point of view to explore the feasibility of the project, through the assessment of the feasibility of the project into the company's business development trend prediction as well as the corresponding resource allocation and other issues, and not just look at the sea across the mountains.

Entering the system in order to profit and develop in this micro-competitive era filled with all kinds of information, the financial personnel of enterprises are experiencing an unprecedented big data era.

With big data at the same time, there are also ubiquitous systems in the enterprise. Currently, there is a need for people who are familiar with computer operations and have the financial knowledge to be able to visualize the management effects of the systems, and the operational and financial risks that may exist.

Many of the management systems used in the enterprise have been detached from the traditional sense of financial management debit and credit relationship characterization, the higher the degree of concentration of the system, the more management operations will sink. China Unicom from 2009 since the establishment of a large ERP system, has been realized from a business occurrence or the project began as a starting point for the financial data penetration of the line, the traditional sense of accounting accounting operations have been automatically linked into the system to complete. In this context of systematization, a great demand for management accounting talents lies in the direction of the system to have the ability to see through and identify, that is, not only to use the system, but also to a certain extent to achieve the management of the system, the system management into the financial system of layer by layer penetration, the ring through.

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