Accounting
You have been hired as a new management accountant at General Motors. During lunch breaks, you noticed that your peers are engaged in several lively discussions on the role of the management accountant, and how the proliferation of technology is changing that role. They referenced an article by Raef Lawson titled, Management Accounting Competencies: Fit for the Purpose in the Digital Age? (Links to an external site.) as a must-read resource on the topic. You decided to join the discussion.
Read this article and determine if you agree or disagree with Raef Lawson. Please make certain that you address in detail the rationale of your agreement or disagreement.
ANSWER
Introduction
The recent advancement in digital technology have rejuvenated the concern between management accounting and technology. In the article dubbed “fit for purpose in digital age”, Raef Lawson an author highlights the interruption caused by new technological developments such as Artificial intelligence, machine learning, blockchain, and predictive analysis which he argued that due to these technologies considerable positions for management accounting would be substituted with possibility of new ones being created. This calls for the need to be advance the skills to meet the current trend.
Explanation
Yes, I do agree with all the stated points by Professor Raef Lawson as per his article due to the technological revolution being experienced in both business and at work level. The changes in technology have rendered some skills obsolete for instance management accounting.
To fit in this environment which is first changing management accountant should switch focus from the old roles like financial reporting and general bookkeeping and adapt to the digital age.
Embracing use artificial intelligence and robotics in business comes with a lot of merits which goes along way to increase the production volume. Some of the benefits are:
- Increasing business operations with minimal resources. The use of artificial intelligence and robots will remarkably reduce human labor while the operation volume is kept at par.
- Improving efficiency with reduced cost of operation.
- Automation of procedures and tasks thus reducing time wastage.
- Obtaining additional values from actual venture.
Modern technology like robotics process automation has the ability to robotize routine and rotative tasks such as financial reporting, auditing and recording transaction procedures more accurately than human beings. Secondly reliability and accuracy is assured when these technological advancements are adopted.
Value addition is one of the irreplaceable roles of management accountants due to this they should enhance their expertise in the relevant field of data analytics, coming up with working approach, management ability and finally being in a position to analyze data and derive value from the data. This is essential for decision making.
In order to remain relevant for current and future projection, the management accountant should foster the following:
Be a critical thinker.
Have the correct mindset.
Have expertise in analytical data.
References
Lawson, Raef A., et al. “Thoughts on competency integration in accounting education.” Issues in Accounting Education 30.3 (2015): 149-171.
Spraakman, Gary, et al. “Employers’ perceptions of information technology competency requirements for management accounting graduates.” Accounting Education 24.5 (2015): 403-422.
