Role of accountant in company strategic planning
Accounting is the basic informational system for taking right administrative decisions. Today chief accountant is the second person in a company after the CEO. Accountant is engaged in strategic planning, information systems control, costs control and reporting. He/she is also involved in tax planning, including tax optimization, and adjusts the internal control in the company. In order to make the system of financial accounting and control work, chief accountant is also concerned with staff recruitment, determining not only the key personnel, but also making a plan for their replacement. If you are practicing accountant you can join our professional community here. The community protects the interests of its members. It is a source where you can share your wages and other important work information.
Top managers believe that accounting provides with quantitative information both decision making process and process of management decisions implementation. Information link between financial and management accounting is not regulated by any legislative norms and standards. Nevertheless, administrative information must be coordinated and compared with accounting information. To ensure such comparability, special attention must be paid to the process of company accounting policy developing, which should be formed jointly by the chief accountant and financial director. Otherwise, a separate department should deal with data collection and processing used for taking administrative decisions that will not help to reduce or optimize costs in the circumstances of price competition aggravation.
In modern conditions the company must have a common accounting system with a strategic orientation for normal production and business activities. In this case, accounting information will facilitate the process of developing and implementing business strategy of the company, and accounting tools will be integrated in strategic management process. Transition from administrative cost analysis to strategic cost management is a major challenge for future company development. The success of this move will boost the importance of accounting. Thus, strategic financial planning becomes more and more significant part of chief accountant every day activity. Today, accounting is not the ultimate goal but a tool to achieve business success that is why general accounting system must conform to company business strategy.
Jean Welch together with Jorge Arnold about the role of employees in the Strategic Planning of business processes.
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