Corporate accountants in leading edge companies have been transformed from "bean counters" or "corporate cops" on the periphery of business decision making to business partners and valued team members with central roles in defining strategic activity, a new study by a DePaul University professor reveals.

The study, "Counting more, Counting Less: Transformations in the Management Accounting Profession," details how the work of management accountants and their corporate roles have changed in the last five years. It provides both a snapshot of the current state of the profession in the United States and an indication of where it is heading in the future.

"This report reveals dramatic changes occurring in corporate America," said study author Gary Siegel, a DePaul School of Accountancy professor. "The occupation is nothing like it was 10 years ago. Technological advancements have liberated management accountants from the mechanical aspects of preparing standard accounting reports. Instead, management accountants in 1999 spend the bulk of their time working with others analyzing and interpreting information. They are actively involved in decision making."

The study is based on the results of telephone interviews with 300 practicing management accountants with at least seven years of experience who were randomly sampled from the memberships of the Institute of Management Accountants (IMA) and the American Institute for Certified Public Accountants (AICPA). In-person interviews also were conducted with accountants from five companies considered to be on the cutting edge in management accounting practice. Sponsored by the IMA, the study updates a practice analysis conducted five years ago.

Among the study’s findings:

• Work activities for management accountants are expanding to include greater involvement in analysis and decision making, strategic planning, internal consulting, process improvement, and performance evaluation. As a result, the name of the profession is becoming obsolete; respondents increasingly refer to themselves as working "in finance," as analysts, business partners, business managers and controllers.

• Management accountants believe their value and image within business organizations has improved. Demand has increased for their advice, expertise and involvement. The "number cruncher" stereotype has given way to a role as business partner. In corporations where accountants function as business partners, there is anecdotal evidence that better business decisions are being made.

• Management accountants spend more time communicating with people in their companies than they did five years ago. Respondents universally agreed that good interpersonal skills are essential for success today.

• Accountants are moving from physically isolated, centralized accounting departments into the operations departments they serve.

• More than 50 percent of management accountants now work on cross-functional teams and are increasingly likely to take leadership roles.

• Due to their changing roles, management accountants believe their work has become more exciting and they relish their new status within companies. However, work hours have increased.

• In the future, management accountants see their roles expanding beyond business partnering to strategic partnering. They expect their roles to be more visionary and proactive and to share organizational decision making with their CEOs.

Siegel said the study has implications for accounting educators, corporations and professional organizations. Educators need to redesign accountancy curricula to stress strategic planning and process improvement. For corporations, the findings could be used as benchmarks for internal activities and to update skills-based training and recruiting. Accountancy organizations can use the study to update their certification and education programs, enhance the image of management accountants and create a new title for the profession.

Editor’s Note: Siegel can be reached for interviews at (847) 982-2000.