“Strategic Management Accounting is a form of management accounting in which emphasis is placed on information which relates to factors external to the firm, as well as non-financial information and internally generated information”, a thorough and simple definition by one of the leading Professors in International business, Ken Simmonds.
Professionally, the undertakings of a strategic management accountant should involve the collection of useful management accounting information about an organization, its competitors and placement within the industry. Then taking this gathered information to aid in the development, implementation and monitoring of the organization’s business strategies. The accountant provides specialized skills in advising management, with provision of reliable sources of information and research, which should ultimately lead to the most profitable decisions for the business. Keeping in mind always the vision and mission of the organization, and tightly aligning each decision and process with the set goals and objectives.
Improving the efficiency and effectiveness of existing operations within the organization, according to Drury, has to be the most important concern and role of the strategic management accountant. By providing essential information to the different units and working groups inside of the organization, on a timely basis can achieve these consistent objectives. In a fairly large service oriented business, like Jessup, there would be main departments such human resources, which are seen as high priority. Being involved in advertising and public relations, which are personal services that Jessup provides, careful attention should be placed in processes and decision making by the human resources manager. The company, for example, can decide whether to invest in hiring a very qualified and experienced employee to fit a public relations position or hire an average qualified employee, and invest more in the company’s training...
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