Most companies want their CPAs to be business strategists, survey says.

Management accountants in many companies are being asked to do more than just prepare the financial statements; they must interpret the information and explain its business implications to managers, according to a survey commissioned by the Institute of Management Accountants. The Practice Analysis of Management Accounting is a survey of approximately 800 practicing management accountants, from entry-level to chief financial officer positions, that examines their responsibilities as well as the knowledge, skills and abilities they need to be successful.

The role of the management accountant has undergone a striking metamorphosis from "corporate cop" to high-level decision support specialist, according to the report. Results showed that while management accountants needed a strong foundation in basic accounting techniques, they also had to be facilitators in the decision-making process by interpreting historical information and communicating its implications.

"The practice analysis lets people know that these changes are really happening in industry" said Robert C. Miller, assistant controller of Boeing Commercial Aeroplane Group in Seattle. "Financial statements are used to value businesses, but you must be able to interpret financial information differently if you want to manage your business for the future effectively." Miller said management accountants at Boeing are responsible for developing and managing the business and investment analyst programs. "This is part of Boeing's total cost management vision," said Miller.

A survey respondent from ITT Automotive said accountants of the future would have to be more analytical, planning-oriented partners with the operational side of the business. Management accountants als0 must develop excellent communication and interpersonal skills to adopt the new responsibilities successfully, according to the survey.

Reflected in the classroom

In 1994, the IMA and the Financial Executives Institute issued a joint statement that called for a restructuring of educational programs to respond to the needs of corporate customers. The IMA survey was published, in part, to urge companies and universities to close the gap between what is taught and what is practiced.

Miller said he was pleased with the speed with which many large state universities had moved to update their accounting programs to meet corporate needs. "Many universities Boeing visits to recruit accountants are integrating writing and communication skills into their accounting curricula," said Miller. "It also is important to Boeing that students learn to work well in teams." The survey said approximately 75% of new accounting graduates began their careers as management accountants.

Copies of the survey are available by calling Kathy Hogan of the IMA at [phone], ext. 154.

The Management Accountant's Most Critical Work Activities

Each survey respondent was asked to list his or her top 5 most critical activities for success on the job. Here are their top 10 choices:

Accounting systems and
financial reporting .......................47%
Long-term strategic planning ..............32%
Managing the accounting/
finance function ..........................29%
Internal consulting .......................27%
Short-term budgeting process ..............25%
Financial and economic
analysis ..................................25%
Process improvement .......................24%
Computer systems operations ...............21%
Performance evaluation ....................21%
Customer and product
profitability .............................18%

Source: Institute of Management Accountants