Accounting is undergoing a transformation and paradigm shift linked directly to how the profession is perceived both among fellow professionals and by the marketplace at large. Despite the fact that this shift and the changing nature of the profession have been identified in both practitioner and academic circles, much work remains. Accountants and financial professionals must be able to keep pace with the growing requirements placed on the profession, as well as the new tools and technology available to help these professionals meet their goals. In essence, a new way of looking at accounting is necessary in order to navigate the business environment, and a more strategic view is required.
Strategic management accounting is not a new concept. It has existed within the scholarly literature for several decades. What is new, however, is the importance of this concept to the current and future viability of the accounting profession as an industry. While the rising demand for quantitative information provides numerous opportunities, particularly as they pertain to sustainability, governance, and other areas of emerging importance such as human capital and analytics, all these areas also come with challenges. Data scientists, big data experts, and other professionals are seeking to expand their respective spheres of influence within the business decision-making process.
Accountants must be able to leverage and make effective use of these new technologies in order to fully embrace the changes coming to the profession. In essence, accounting must embrace a more strategic and long-term point of view when it comes to how work product is produced and distributed to end users. Simply put, accounting has to become more strategic in concept and in reality. This path forward, of course, is not the only option available for accounting professionals, but in the humble opinion of this author, it appears to be the one most closely linked to reality and the practical implications of the marketplace.