Finance profession has taken a long leap from the conventional double entry bookkeeping times.There was a time wherein the so-called accountant was sitting with different color books tracking and marking and physically counting the cash and taking long hours to tally the amount
From the so-called conventional bookkeeper, the world of finance and accounts have moved to greater heights. Today for companies the accounts have more like an overhead wherein the cost evaluation of keeping the accounting part in the house or to be outsourced is being evaluated across the industry by leading companies and the aggressive one’s already taken a big leap and exploring further possibilities of cost reduction in outsourcing itself.
Of course, every action has two sides same way outsourcing of core accounting functions has its own plus and minus.While the intent is not to elaborate on the same but to highlight the fact that the conventional accounting has lost its so-called confidentiality requirements which were on time hyped at length.Having said that the core aspects of finalization accounts followed with audits etc had to be retained within the company due to its unique proprietary requirements
Whilst the financial accounting goes for major changes in last one decade the management accounting has still its root ties to the origins and has not diverged with the changes in outsourcing segment.This is mainly due to the unique requirement internal to the company.May the below illustration will help to understand the same in a better way.
A financial accounting action lets ’s say record to report which can be outsourced to an outside entity as it mostly deals with the postpartum job of the activities which are already completed.On the other side when it comes to management accounting let’s say pricing which can’t be outsourced as it will kill the secrecy which has to be maintained in pricing in a competitive market.Though there has been invasion to outsource management /cost accounting also for some areas like standard costing wherein the variance analysis of different elements of cost being done, again it is more of a back-end action to correct the future
So in effect, the years to come to no major changes anticipated in the area of management/cost accounting as strategic decisions are very specific and internal to companies and the chances of outsourcing are remote.In effect, though the opportunity for a partial financial accountant may spread across to outsourcing wings management and cost accountant has to be retained as an integral part of organization in core industries
From that perspective certified management Accountant Program promoted by Institute of Management Accountant will be adding substantial credibility a professionals curriculum vitiate