The Institute of Management Accountants (IMA) provides a formal articulation of the core functions and purpose of this field. This articulation emphasizes the processes and techniques used to provide information that supports strategic planning, decision-making, and control activities within an organization. For instance, it encompasses cost accounting, budgeting, performance evaluation, and risk management practices, all aimed at optimizing business operations.
This formally stated understanding serves as a cornerstone for professionals in the field, providing a clear framework for ethical practice and competence. It underscores the vital role of management accountants in contributing to organizational success by offering actionable insights and facilitating informed choices. Historically, its formulation helped solidify the profession’s identity, differentiating it from financial accounting and establishing its value proposition within corporate environments. It helps in identifying the roles of a management accountant that they are experts in the business, are strategic in planning and foresight, reporting and control, and are masters of technology and analytics.
