Thinking like a management accountant can serve Sri Lanka well

Management accountants have evolved from traditional accounting disciplines to become experts in operational, management and strategic problem solving

• Studying with CIMA equips management accountants with a unique set of competencies and skills — giving them competitive advantage 

In Sri Lanka and across the world, CIMA qualified management accountants have gained a reputation for their visionary leadership in turning businesses and organisations around. More than a century old, CIMA has a proud history and track record of improving efficiencies, maximising resources and transforming complex businesses to meet the demands of a rapidly changing business world. 

Everyone — businesses, public service leaders or budding entrepreneurs — can benefit from the management accountant mindset. One may wonder why most of the recent appointments to top positions even in State Owned Enterprises have been CIMA members – the secret is in their skills and competencies. 

Mindset for navigating uncertainties

Management accountants have evolved from traditional accounting disciplines to become experts in operational, management and strategic problem solving. With continuing professional development, management accountants have gained a unique set of competencies and skills. Those who complete their studies with CIMA go on to earn the Chartered Global Management Accountant (CGMA) designation, which positions them to assist organisations to navigate local, national and global challenges — critical abilities for advancing the economy amid uncertainty and change. 

Management Accountants are problem-solvers, not just identifiers

A good management accountant understands their organisation from all perspectives because they learn every aspect of a business, not just the accounting and finance side. Their competencies include analytical thinking, strategic planning, risk management, cost control, communication skills, technical skills, ethics, a hunger for learning and a digital mindset. As a result, management accountants have matured to become value creators and strategic advisors. They lead business operations and drive performance, looking beyond cost management to assess risks and opportunities for investment and growth. This thinking and analysis expertise includes the consideration of environmental, social and governance (ESG). 

Today, management accountants and finance teams play a role as futurists for their organisations, assimilating critical information to guide decision makers, based on a robust understanding of potential financial and non-financial data and scenarios, both good and bad. 

Responsibility and accountability

With such a leading role comes responsibility and accountability. The bedrock of the accounting profession is trust and the profession plays a critical role in supporting relationships between businesses and the communities they serve. Alongside a focus on creating value, management accounting professionals also ensure that their employers remain legally compliant, and operate to high standards through strong internal systems and controls.

With the proliferation of misinformation and disinformation, coupled with civic mistrust, corporate governance and ethics are vital for businesses to function effectively. To support best practices, CIMA members are bound by a code of ethics and strive to ensure that business practices and financial reporting are compliant and transparent. There’s no better team than the finance function to help prevent corruption.

Thinking strategically

Strategy is not about thinking about where we are today, but how we are going to successfully get where we want to be tomorrow. With strategic management, we can maximise resources that can bring us the right returns on investment to reduce debts, grow our economy, and increase wealth.

As a management accountant would do, this requires those in business and public services to:

•  Optimally use resources to increase productivity and reduce costs
•  Make informed choices and data-driven decisions
•  Encourage long-term value generation over short-term profits
•  Identify and navigate risks and uncertainties
•  Seek investment opportunities to drive sustainable growth

Promote trust and confidence through transparency, ethics, and accuracy

By adopting the mindset of a management accountant, Sri Lanka can navigate its economic challenges and pave the way for a prosperous future.

(The writer holds an FCMA (UK), CGMA, MBA, and is Country Manager — Sri Lanka and Maldives at AICPA & CIMA, together as the Association of International Certified Professional Accountants.)