According to recent research, nearly half of the UK’s FTSE100 CEOs now have a financial background, which has risen from only 31 percent three years ago.
The annual Robert Half FTSE100 CEO Tracker revealed that the number of finance-educated CEOs heading FTSE100 firms has risen to 49 per cent this year, with seven of the 10 FTSE100 chief executives appointed in the past 12 months, having a finance background, suggesting that the trend is likely to continue.
But what is the importance to a smaller firm of having a management accountant at the helm?
In a challenging economic climate, there is increasing demand for leaders with a strong financial and strategic skill set to guide organisations and drive competitiveness so that they emerge as a stronger, more capable business. While fiscal expertise is essential in an increasingly regulatory environment.
As the roll call of corporate collapses continues to grow, boards must ensure that their business model is focussed on long-term sustainability and that it is managing risk effectively. It is management accountants who give boards clarity in this decision-making.
Management accountants develop budgets, perform asset and cost management, and create important reports used by the management team, who depend greatly on the information provided by them to develop effective business strategies.
Small business owners make most of the decisions within their company, so the information presented by the management accountant affects the owner’s ability to make sound business decisions.
Management accountants generally have a unique and broad skill set to help their organisations drive sustainable business success, as they have an all-round view of business, combining financial accounting with strategic and management skills, to manage change, risk and uncertainty, promote operational efficiency and effectiveness, and protect corporate assets.