Archive for the ‘CMA’ Category

Professional Body & Professionalism - 3

Friday, March 13th, 2009
This is part 3 of the topic Professional Body and Professionalism by CMA B V Prabhakar. He discusses on how accounting bodies IMA-USA, ICWAI-INDIA & ICSI-INDIA apply the above principles.

View CMA B V Prabhakar's LinkedIn profileView CMA B V Prabhakar’s profile

PROFESSIONAL LEARNING CENTER

IMA has an online Professional Learning Center with access to Programs designed for Continuing education courses for Certified Management Accountants (CMAs) and professional development programs designed to help management accountants and finance professionals build their careers.

All IMA professional development programs relate to one or more of the five core competencies of management accounting:

WEBINARS

Webinars are designed to actively engage members in the latest trends and thinking in the profession without having to leave the office or home. IMA conducts webinars session at least a month on latest topics conducted by experts in the field.

CONVENTIONS

IMA regularly conducts seminars, get-togethers, and conventions, with educational sessions, speakers, workshops and valuable networking opportunities to build members skills and capabilities to become a valuable, strategic business partner, and a champion to their company’s bottom line.

C. RESEARCH SUPPORT

i) Foundation for Applied Research

The IMA Foundation for Applied Research, Inc. (FAR) was formed to ensure sufficient resources, both human and financial, to sustain and augment IMA’s role as a valued center of research on the most important practice issues of the day while also identifying financial management trends to meet the challenges of the next millennium.

The Trustees who oversee FAR’s research activities represent management accountants and financial professionals from Corporate America to academe. Collectively, they have established research priorities to address the following questions:

  1. How can management accounting and finance best contribute to improving competitiveness and achieving continuous improvement in the enterprise?
  2. How does management accounting affect management behavior?
  3. What are important emerging cost management and performance measurement techniques and issues?
  4. How is globalization affecting management accounting and finance?
  5. How is emerging technology being used to improve the effectiveness of management accounting?
FAR’s Mission

FAR’s mission is to develop and disseminate timely management accounting and financial management research findings that can be applied to current and emerging business issues.

Research Process

Topics are identified with input from FAR’s constituency base. A call for research is issued to the research community. FAR trustees select the research team and establish a project committee of subject matter experts to work with the researchers in developing FAR’s research. Representatives of FAR maintain relationships with various standard-setting and regulatory bodies as well as other professional accounting organizations to monitor and influence proposals and participate in cooperative studies. Findings are presented at conferences and seminars and are published as monographs or books.

IMA’s Foundation for Applied Research goal is to create discussion papers, Statements on Management Accounting and practitioner-oriented articles based on complete research for publication in Strategic Finance magazine and/or Management Accounting Quarterly.

ii) The IMA Research Center of Excellence

The IMA Research Center of Excellence (COE) is focused on delivering research, best practices, and tools for practitioners in accounting and finance who are involved in decision support, planning, budgeting, forecasting, risk management, and internal control over financial reporting.

In addition to the Foundation for Applied Research (FAR), the CoE is composed of five research practices:

  • Leadership Strategies and Ethics
  • Technology Enablement
  • Strategic Cost Management
  • Business Performance Management
  • Finance Governance, Risk, and Compliance
The COE is dedicated to advancing the management accounting and finance profession and the careers of practitioners, enabling them to build sustainable value within their operations.

iii) Ventana Research Studies

IMA has signed a cross-marketing and research agreement with Ventana Research, a research and advisory services firm focused on performance management and the integration of finance and IT. Under the agreement, IMA members will have access to Ventana Research syndicated research reports, publications and research analysts. IMA members can participate in research studies and receive the results of those studies on topics like performance management and technology.

iv) Research Library

The McLeod information Center covers the fields of Management Accounting and Financial Management.

Custom Bibliographies

If Members need information on a specific topic, a tailor-made reading list can be prepared , based upon key concepts provided by E-mail, Regular mail, or Fax.

Full-text Articles

Copies of articles published in IMA or non-IMA periodicals can be sent to the members by E-mail, Regular mail, or Fax on request.

Internet Research

Should members need research services, the Center can scout Internet databases for journal & news articles, case studies, and other research of the Business and Management resources, producing up-to-date, austive bibliographies, as well as full-text-article sets, to meet the member’s specifications.

D. PUBLICATIONS

i) Strategic Finance is the flagship publication of the Institute of Management Accountants (IMA®). An award-winning monthly magazine, it provides the latest information about practices and trends in finance, accounting, and information management that will impact members (mostly controllers, CFOs, and their staffs) and their jobs. The thought-provoking articles offer advice that will help financial professionals perform their jobs more effectively, advance their careers, grow personally and professionally, and make their organizations more profitable.

ii) Management Accounting Quarterly is a quarterly, refereed online journal that contains in-depth articles by and for academics and practitioners of corporate (management) accounting and financial management.

Some of the subjects covered are cost/management accounting techniques, ABC/ABM, RCA, GPK, statistical process controls, target costing, theory of constraints, methods of calculating stock options, techniques to improve accounting and finance education, new theories in finance and accounting, and much more.

iii) Statements on Management Accounting (SMAs) present the views of IMA regarding management accounting and financial management issues. In their development, the Statements are subjected to a rigorous exposure process.

SMAs are classified based on the following IMA research practice areas:

  • Leadership Strategies and Ethics
  • Technology Enablement
  • Strategic Cost Management
  • Business Performance Management
  • Finance Governance, Risk, and Compliance (FGRC)
  • Practice of Management Accounting
iv) IMA Educational Case Journal (IECJ®),

IMA® launched the IMA Educational Case Journal (IECJ®), a quarterly, on-line journal. The mission of the Journal is to publish teaching cases and research related to case writing or teaching with cases in management accounting and related fields.

The journal accepts cases covering a wide range of topics, reflecting the diverse skill set required of management accountants today. International submissions are welcome and encouraged. The IECJ is listed in the Cabell’s Directory of Publishing Opportunities.

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Professional Body & Professionalism - 2

Wednesday, March 4th, 2009
This is part 2 of the topic Professional Body and Professionalism by CMA B V Prabhakar. He discusses on how accounting bodies IMA-USA, ICWAI-INDIA & ICSI-INDIA apply the above principles.

View CMA B V Prabhakar's LinkedIn profileView CMA B V Prabhakar’s profile

Efforts of different professional bodies to promote professionalism.

Let us now see the case of three Professional Bodies, IMA-USA, ICWAI-INDIA & ICSI-INDIA, and compile how these Professional Accounting Bodies ensure, build and promote Professionalism among its members.

I. INSTITUTE OF MANAGEMENT ACCOUNTANTS , USA (www.imanet.org)

The Institute of Management Accountants (IMA®) is the world’s leading organization dedicated to empowering management accounting and finance professionals to drive business performance.

With a network of about 60,000 professionals, IMA provides a dynamic forum for management accounting and financial professionals to develop and advance their careers through its Certified Management Accountant (CMA®) program, cutting-edge professional research and practice development, education, networking, and the advocacy of the highest ethical and professional practices.

Vision Statement

The world’s leading association for management accounting and finance professionals.

Mission Statement

To provide a dynamic forum for management accounting and finance professionals to develop and advance their careers through certification, research and practice development, education, networking, and the advocacy of the highest ethical and professional practices.

A. Statement of Ethical Professional Practice as issued by IMA:

Members of IMA shall behave ethically. A commitment to ethical professional practice includes overarching principles that express our values, and standards that guide our conduct.

PRINCIPLES

IMA’s overarching ethical principles include: Honesty, Fairness, Objectivity, and Responsibility.

Members shall act in accordance with these principles and shall encourage others within their organizations to adhere to them.

STANDARDS

A member’s failure to comply with the following standards may result in disciplinary action.

I. COMPETENCE

Each member has a responsibility to:

  1. Maintain an appropriate level of professional expertise by continually developing knowledge and skills.
  2. Perform professional duties in accordance with relevant laws, regulations, and technical standards.
  3. Provide decision support information and recommendations that are accurate, clear, concise, and timely.
  4. Recognize and communicate professional limitations or other constraints that would preclude responsible judgement or successful performance of an activity.
II. CONFIDENTIALITY

Each member has a responsibility to:

  1. Keep information confidential except when disclosure is authorized or legally required.
  2. Inform all relevant parties regarding appropriate use of confidential information. Monitor subordinates’ activities to ensure compliance.
  3. Refrain from using confidential information for unethical or illegal advantage.
III. INTEGRITY

Each member has a responsibility to:

  1. Mitigate actual conflicts of interest, regularly communicate with business associates to avoid apparent conflicts of interest. Advise all parties of any potential conflicts.
  2. Refrain from engaging in any conduct that would prejudice carrying out duties ethically.
  3. Abstain from engaging in or supporting any activity that might discredit the profession.
IV. CREDIBILITY

Each member has a responsibility to:

  1. Communicate information fairly and objectively.
  2. Disclose all relevant information that could reasonably be expected to influence an intended user’s understanding of the reports, analyses, or recommendations.
  3. Disclose delays or deficiencies in information, timeliness, processing, or internal controls in conformance with organization policy and/or applicable law.
RESOLUTION OF ETHICAL CONFLICT

In applying the Standards of Ethical Professional Practice, members may encounter problems identifying unethical behaviour or resolving an ethical conflict.

When faced with ethical issues, members should follow their organization’s established policies on the resolution of such conflict.

If these policies do not resolve the ethical conflict, then members should consider the following courses of action:

  1. Discuss the issue with the immediate supervisor except when it appears that the supervisor is involved. In that case, present the issue to the next level. If a satisfactory resolution is not achieved, submit the issue to the next management level. If the immediate superior is the chief executive officer or equivalent, the acceptable reviewing authority may be a group such as the audit committee, executive committee, board of directors, board of trustees, or owners. Contact with levels above the immediate superior should be initiated only with the superior’s knowledge, assuming he or she is not involved.
  2. Clarify relevant ethical issues by initiating a confidential discussion with an IMA Ethics Counsellor or other impartial advisor to obtain a better understanding of possible courses of action.
  3. Consult own attorney as to legal obligations and rights concerning the ethical conflict.
Mission of the Ethics Program

Encourage organizations and individuals to adopt, promote and execute business practices consistent with high ethical standards, by providing valuable insight into the complexities that result from social and technological change.

The following definition of ethics is provided as a foundation for IMA members.

“Ethics in its broader sense, deals with human conduct in relation to what is morally good and bad, right and wrong. It is the application of values to decision making. These values include honesty, fairness, responsibility, respect and compassion.” - Rushworth Kidder, President, Institute for Global Ethics

As already explained above, IMA offers an ethics helpline service. Members of IMA as well as other financial professionals may contact this helpline for free, confidential guidance on ethical issues.

The purpose of the helpline is to provide guidance to those in the profession that find themselves in an ethical dilemma.

After a preliminary discussion of the problem to determine the kind of ethics matter being reported, an ethics counsellor will respond to the caller. Confidentiality is maintained at all times. The counsellor will not provide a specific resolution but will explain how the dilemma relates to the provisions of IMA’s Statement of Ethical Professional Practice.

B. CONTINUING EDUCATION REQUIREMENTS

CMAs are required to maintain their proficiency in the fields of management accounting and financial management. This includes knowledge of new concepts and techniques as well as their application in the management accounting and financial management professions. The objective is to maintain the professional competence of the individual and to enhance one’s ability to perform job-related requirements. The continuing education requirement is 30 hours per year.

A broad range of subjects may be included in the programs for which hours of credit will be given

- all aspects of accounting, financial management, business applications of mathematics and statistics, computer science, economics, management, production, marketing, business law, and organizational behaviour.

All CMAs are required to complete a minimum 2 hours of continuing education on the subject of ethics as part of their 30-hour annual CPE requirement.

IMA’s Statement of Ethical Professional Practice as depicted above, is an excellent framework for determining the types of ethical topics that are acceptable. The focus of the ethics education should be principally in the area of management accounting and financial management.

Topics should include ethical considerations in the area of decision support, planning and control for accounting and finance professionals working inside organizations. Members are encouraged to address specific scenarios such as fraud in financial reporting, manipulation of budgets for personal gain, disclosure of confidential financial information and coverage of ethics within general business environment.

To be continued….

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Professional Body & Professionalism - 1

Thursday, February 26th, 2009
Profession, Professional, Professional Body & Professionalism is a guest post by CMA B V Prabhakar. He will discuss on how accounting bodies IMA-USA, ICWAI-INDIA & ICSI-INDIA apply the above principles.

View CMA B V Prabhakar's LinkedIn profileView CMA B V Prabhakar’s profile

PROFESSION & PROFESSIONAL

Profession has different meanings – employment or trade that everyone has and exercises in public. The professions are occupations that require specialized knowledge, educational training, high-level control over the content of work, organization, self, altruism, the spirit of community service and high ethical standards.

Thus, Profession is a specialized activity of labour in a society, and the person who performs it is called : professional.

The essentials of a Professional are:

  • gains the expertise through training/certification more often through college or graduate degree such as psychology, law, medicine, nursing, architecture, accounting or engineering
  • who provides a service ensuring the result with a specified quality consistently
  • maintains high ethical standards

PROFESSIONALISM & PROFESSIONAL BODY

Professional Body

A professional body is a group of people in a learned occupation who are entrusted with maintaining control or oversight of the legitimate practice of the occupation.

Professional bodies play the following roles:

  1. They impart the necessary training and professional certification to indicate a person possesses qualifications in the subject area and often membership in a professional body is synonymous with certification.
  2. They act as a learned society contributing to continuous professional development so that they update their knowledge with latest techniques to ensure they deliver a service with a specified quality consistently.
  3. They are set up to safeguard the public interest. This is what gives them their legitimacy.
  4. Professional bodies enforce standards of ethics in their profession and have disciplinary mechanism to correct any deviations from the acceptable behaviour or conduct
  5. They act as a professional association (including legitimating restrictive practices) and represent the interest of their members
  6. They provide network opportunities among its members to share their knowledge and experiences for further uplifting of the profession. This could be through conducting regular seminars, professional development programs, and conventions.
  7. They conduct research in the area of their specialisation and help members in conducting the research activities
  8. They make publications in the areas of their specialisation such as Journals, Case studies, and articles.

In other words, Professional body strive to embody and enforce professionalism among its members.

PROFESSIONALISM

Professionalism means just not possessing skills and competence to perform the professional duties but also meticulous adherence to undeviating courtesy, honesty, integrity, objectivity and responsibility in one’s dealings with clients/customers and associates, plus a level of excellence that goes over and above the commercial considerations and legal requirements.

This series will explore how different bodies continue to promote professionalism. Part 2

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CMA Chanda Kochhar CEO ICICI Bank

Saturday, December 20th, 2008
ICICI Bank has formally announced CMA Chanda Kochhar as CEO and Managing Director of ICICI Bank. She will succeed one of the most powerful personalities in the bank industry Mr. K V Kamat.

She is Associate Member of ICWAI. She did her Masters in Management Studies from the Jamnalal Bajaj Institute of Management Studies, Mumbai.

She has worked all the way from being a Management Trainee to become the CEO of ICICI Bank. On her way to way to the top, she has numerous achievements. Under her leadership,the Bank has won several prestigious awards:

  • * “Best Retail Bank in India” – 2005 - The Asian Banker
  • * “Best Retail Bank in India” – 2004 - The Asian Banker
  • * “Best Retail Bank in India” – 2003 - The Asian Banker
  • * “Excellence in Retail Banking Award” -2002 - The Asian Banker
  • * “Best Retail Bank in India” – 2001 - The Asian Banker

As recognition of her contribution to establish ICICI Bank as a leading player in the banking industry Ms. Kochhar has been:

* Ranked 33th in the Fortune’s List of Most Powerful Women in Business, 2007
* Ranked 37th in the Fortune’s List of Most Powerful Women in Business, 2006
* Ranked 47th in the Fortune’s List of Most Powerful Women in Business, 2005
* Awarded Business Woman of the Year 2005 by The Economic Times
* Selected as Retail Banker of the Year 2004 (Asia-Pacific region) by The Asian Banker from

amongst prominent retail bankers in the Asia Pacific region
* Selected as ‘Rising Star Award’ for Global Awards 2006 by Retail Banker International
I congratulate CMA Chanda Kochhar on her new appointment and wish her all the success in years to come.

Readers: Please congratulate CMA Chanda Kochhar by commenting on the blog post.


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CMA 2.0 - Portal Launched

Tuesday, August 19th, 2008
I had been busy in the development of Portal http://cmaindia.informe.com which is dedicated to Management Accountants of India. In development of the portal, inputs have been provided by lot of members especially Deverajan, RV, Prabhakar, Ashutosh and Ramesh Joshi without which it would not have been a success.

The portal has general topic of discussion with members of public and dedicated area for Members of ICWAI. This platform gives an opportunity to every member to brand himself in the professional network. You will notice on every post the Educational Qualification, Website, IM details and when he/she become member of ICWAI. If a member does not have his own website, I have suggested, everyone to have their profile of linkedin. Linkedin on its own will open lot of opportunities by social networking.

Why Informe ?: The choice of portal is for the simple reason it supports Web 2.0 Technology

What is Web 2.0 ?

Tim O’Reilly contrast the topic on his blog on Web 1.0 with Web 2.0

Web 1.0 –> Web 2.0
DoubleClick –> Google AdSense
Ofoto –> Flickr
Akamai –> BitTorrent
mp3.com –> Napster
Britannica Online –> Wikipedia
personal websites –> blogging
evite –> upcoming.org and EVDB
domain name speculation –> search engine optimization
page views –> cost per click
screen scraping –> web services
publishing –> participation
content management systems –> wikis
directories (taxonomy) –> tagging (”folksonomy”)
stickiness –> syndication
Brand CMA 2.0:

The principle for today’s Management Accountant is the same and that is the foundation portal http://cmaindia.informe.com/. The content of the portal will be driven by the participation of the members . The reader of the portal will be benefited by the content and quality of discussion. However the real beneficiary would be the one who will be initiaties the discussion, persuasively discusses on topics and arrives at a solution.

Karma - in discussion board terminology. Other members will rate him/her and comment why they are rated him. This will encourage the contributor to think about how his actions will benefit the group as a whole.

I would invite you to join the CMA Portal by registering and participate in professional networking. Click on following link to Register. Please promote the portal in your professional network.

Regards,

Santosh Puthran

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CMA 2.0 Portal Launched

Tuesday, August 19th, 2008
I had been busy in the development of Portal http://cmaindia.informe.com which is dedicated to Management Accountants of India. In development of the portal, inputs have been provided by lot of members especially Deverajan, RV, Prabhakar, Ashutosh and Ramesh Joshi without which it would not have been a success.

The portal has general topic of discussion with members of public and dedicated area for Members of ICWAI. This platform gives an opportunity to every member to brand himself in the professional network. You will notice on every post the Educational Qualification, Website, IM details and when he/she become member of ICWAI. If a member does not have his own website, I have suggested, everyone to have their profile of linkedin. Linkedin on its own will open lot of opportunities by social networking.

Why Informe ?: The choice of portal is for the simple reason it supports Web 2.0 Technology

What is Web 2.0 ?

Tim O’Reilly contrast the topic on his blog on Web 1.0 with Web 2.0

Web 1.0 –> Web 2.0
DoubleClick –> Google AdSense
Ofoto –> Flickr
Akamai –> BitTorrent
mp3.com –> Napster
Britannica Online –> Wikipedia
personal websites –> blogging
evite –> upcoming.org and EVDB
domain name speculation –> search engine optimization
page views –> cost per click
screen scraping –> web services
publishing –> participation
content management systems –> wikis
directories (taxonomy) –> tagging (”folksonomy”)
stickiness –> syndication
Brand CMA 2.0:

The principle for today’s Management Accountant is the same and that is the foundation portal http://cmaindia.informe.com/. The content of the portal will be driven by the participation of the members . The reader of the portal will be benefited by the content and quality of discussion. However the real beneficiary would be the one who will be initiaties the discussion, persuasively discusses on topics and arrives at a solution.

Karma - in discussion board terminology. Other members will rate him/her and comment why they are rated him. This will encourage the contributor to think about how his actions will benefit the group as a whole.

I would invite you to join the CMA Portal by registering and participate in professional networking. Click on following link to Register. Please promote the portal in your professional network.

Regards,

Santosh Puthran

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United Kingdom

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Profession versus Professionalism

Monday, June 30th, 2008

I was trying to analyze  the definition of words Profession, Professional Body and Professionalism on www.reference.com.  (These words are interchangeable used when the Accountants discuss among themselves.)

Profession:

A profession is an occupation, vocation or career where specialized knowledge of a subject, field, or science is applied. It is usually applied to occupations that involve prolonged academic training and a formal qualification. It is axiomatic that "professional activity involves systematic knowledge and proficiency." Professions are usually regulated by professional bodies that may set examinations of competence, act as a licensing authority for practitioners, and enforce adherence to an ethical code of practice.

Professional Body:

A professional body or professional organization, also known as a professional association or professional society, is an organization, usually non-profit, that exists to further a particular profession, to protect both the public interest and the interests of professionals. The balance between these two may be a matter of opinion. On the one hand, professional bodies may act to protect the public by maintaining and enforcing standards of training and ethics in their profession. On the other hand, they may also act like a cartel or a labor union (trade union) for the members of the profession, though this description is commonly rejected by the body concerned.

Many professional bodies perform professional certification to indicate a person possesses qualifications in the subject area, and sometimes membership in a professional body is synonymous with certification, but not always. Sometimes membership in a professional body is required for one to be legally able to practice the profession; see licensure.

Professionalism

Oxford Dictionary: the competence or skill expected of a professional.

Graham Ward in IFAC website: Professionalism,  is about individual modes of behaviour that command respect and build trust. It is about excellence in service as measured by recognised standards.It is about delivering services or working to standards that meet the needs of and are expected by our clients.

Such behaviours are indeed a necessary part of belonging to a profession but almost any trade could be described as professional in these terms!

As any of us here knows, what separates the professionalism of members of a professional body from the behaviours of other types of so-named professionals, is the requirement to continually reinforce and demonstrate our professionalism, not merely assert it through a one-off qualification. And it is our membership of a professional body – one which embodies the distinguishing features I have defined – that confers on us the obligation to abide by professional standards and regulation.

It is therefore no longer enough for professions to say to the public ‘you must trust me’, today we must earn that trust and demonstrate: clearly, openly and often, why that trust should be given.
 

 

Of the above three words, I had to search a lot on the word "Professionalism" to find a true meaning to suit  accountancy profession. Members of accountancy profession will be normally be expected to take actions that contribute to the public interest.

The Principle of Professional Conduct on AICPA, US website  summarizes Professionalism in a precise manner.

Section 51: These Principles of the Code of Professional Conduct of the American Institute of Certified Public Accountants express the profession’s recognition of its responsibilities to the public, to clients, and to colleagues. They guide members in the performance of their professional responsibilities and express the basic tenets of ethical and professional conduct. The Principles call for an unswerving commitment to honorable behavior, even at the sacrifice of personal advantage.

Section 52: In carrying out their responsibilities as professionals, members should
exercise sensitive professional and moral judgments in all their activities.

Section 53: Members should accept the obligation to act in a way that will serve the public interest, honor the public trust, and demonstrate commitment to professionalism.

Section 54: To maintain and broaden public confidence, members should perform
all professional responsibilities with the highest sense of integrity.

Section 55: A member should maintain objectivity and be free of conflicts of interest in discharging professional responsibilities. A member in public practice should be independent in fact and appearance when providing auditing and other attestation services.

Section 56: A member should observe the profession’s technical and ethical standards, strive continually to improve competence and the quality of services, and discharge professional responsibility to the best of the member’s ability.

Section 57: A member in public practice should observe the Principles of the Code of Professional Conduct in determining the scope and nature of services to be provided.

I would like to see your comments and views on this topic. Please feel free to comment on the blog post.

Regards,

 

Santosh Puthran

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Free Laptop with AOL Broadband

Saturday, January 19th, 2008

Has the world started rotating the other way round “Free Laptop with AOL Broadband at Carphone Warehouse” !!! or Free Laptop when you subscribe for mobile phone contract.

I did not believe when these offers came the first time.

The mobile phone offer reads:

Our best offer yet! Connect selected mobile phones to selected monthly contracts this month and get a free laptop!

That’s right a Free Dell Inspiron 1520 laptop is yours on many £35 a month tariffs this winter when you connect to an 18 month contract. There are no catches or small print, we’ll simply send out your free laptop as soon as we’ve confirmed you’ve paid your first month’s mobile bill.

The laptop retails at £ 380 to £ 489. And the total commitment on mobile phone contract is £ 630. So you can guess where the margins come from when the buying is wholesale.

The other product that amazes me is Gillette Shaving Razor. Every year they add extra blade on the razor and the product sells. Currently it has 5 blades - Retails at £ 21.99 and cartridges of 8 at £ 14.99. In year 2010, it may have 10 blades. Will you consider them expensive or cheap ?

With the change in technology, the rules of the business change. Tata’s recently came up with Nano, a cheapest car on the planet !!! Now the role of management accountants in the industry has become more wider than ever.

In my SAP implementations, Financial Controllers have been more interested in Management Accounting Reports viz. Contribution/Margin reports, product group/ product wise. They want sliced and diced reports region-wise/customer group wise. The driver to these reports are the business managers who want it for decision making. SAP is encouraging the use of Business Intelligence for reporting.

The world is also spinning the other way round in Accounting. As the rules of business are changing, so is the role of management accountants and management accounting.

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Regards,

Santosh Puthran

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Networking and how to use Social Networking sites

Sunday, January 13th, 2008

I have been stumbling upon good sites for the benefit of the readers of Management Accountant Blog. I happened to meet Mr. Murthy from Rajahmundry, AP. I liked the websites he had stumbledupon and submitted reviews on a couple of posts and so I spoke to him.

To my surprise, he volunteered to help me and provide me with a couple of tips for my blog. We chatted on messenger for more than 2 hours and his tips were very helpful. I hope this helps you too.

  1. Layout of the Blog should be simple. Fonts matter!!! Accountants like reading small fonts (may be because we are interested in details and numbers.)
  2. Create and promote your profile on http://www.linkedin.com/ , http://www.spock.com/ and http://www.stumbledupon.com/ The profiles will help you network with right people and build up your network. Professional networking sites like linkedin help you immensely.
  3. Search Optimisation Tips: Use search optimization to drive internet traffic to your website. Read more

His advice was very helpful and you must have noticed the change on my blog. Currently I am working my profile on http://www.spock.com/Santosh-Puthran-jKkU14H and sending invites to people who are in my address book.

Spock is a very powerful internet tool. Even if you have not created your profile on spock, it will recognise you from bio pages, social networks, news sites, blogs or directories. Take for e.g. Bill Gates, Ratan Tata, Tony Blair, Hillary Clinton, Barack Obama or Manmohan Singh.

Spock lets you determine where people can find you on the internet. When you sign up for Spock you can claim your search results and shape what information people see. Plus, when there is new information about you on the internet, Spock sends you an alert so you are always up to date. Signing up is free and easy - just click here.

How do I claim a search result?

To claim a search result on Spock, click “Claim Your Search Result” on the page. When you have successfully claimed your search result on Spock, it will be merged with your current search result, and will be tied to your Spock account.

I was pleasantly surprised when I saw my profile on Spock and I claimed it.

As a professional, how should I use professional networking tools?

  1. Linkedin and Spock will help you build up your professional network. Companies are reluctant to spend on advertising for any vacancies or professional work. Virtual networking will help you to progress in your career by connecting to the right people. Spock will help you link all your profiles and websites together. This will help people know you and your work.
  2. Plaxo : http://www.plaxo.com/ is a contact address management tool which is integrated with Outlook and Linkedin. You update your info, your friends update theirs, and everyone stays in touch! You should sync your mobile phone with Outlook to have your contacts handy. You never know when opportunities strike.
  3. StumbleUpon: Use stumbleupon to review good sites on the internet. You will always find people to subscribe to your feeds on stumbleupon if you are stumbling on good sites. Search your name on http://www.google.com/ and see the results. This will give an indication whether you are known on the internet. Then check whether you are linked to the professional network.
  4. Google Reader: I have found www.google.com/reader very useful to keep myself updated when I subscribe to feeds of good websites. You will always notice the word “RSS” or “Atom” on a website. Click it and subscribe to the updates from the website.
  5. Blog: I would always recommend you have your own blog to share professional updates or participate by commenting on websites or blogs. This will help people in your profession to know about you. The accountants who are in practise should always have their website and should blog or comment on important updates in business or taxation. This will help them to be known in business circles in the industry.

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Regards,

Santosh Puthran

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THREE-DAY GLOBAL SUMMIT ON MANAGEMENT ACCOUNTING IN DELHI ON JAN 10-12

Wednesday, January 9th, 2008
The Minister of Corporate Affairs Shri Prem Chand Gupta will inaugurate the “Global Summit on Management Accounting” on 10th January 2008. This three-day Mega event of Management Accounting bodies across the globe is being organized by the Institute of Cost and Works Accountants of India (ICWAI) at Vigyan Bhawan New Delhi from 10th-12th January 2008. The summit is first of its kind and is expected to create a historical turn in the evolution of the management accounting profession globally.

The Minister of External Affairs Shri Pranab Mukherjee will deliver the Valedictory Address on 12th January 2008.

Deliberations during the Summit would focus on Management Accounting in its new manifestation including the territories of accounting, strategy and management of enterprises. As the management accounting bodies of the Western world has already been witnessing and turning them to such a paradigm, some beginning has to be made to complete the process across the globe among similar bodies. It is with this objective that the Summit is being organised by the ICWAI.

The ICWAI will play the key role as the main host for this Global Summit. Co-hosts include Institute of Cost and Management Accountants of Bangladesh (ICMAB), Institute of Cost and Management Accountants of Pakistan (ICMAP) and the Society of Certified Management Accountants of Sri Lanka (SCMASL). Besides these SAARC bodies, the Summit will have technical partnership with other counterparts from the Western world such as Certified Management Accountants (CMA), Canada, Certified Institute of Management Accountants (CIMA), UK and the Institute of Management Accountants (IMA), USA. Around 1200 delegates are expected to participate in the programme out of which about 200 would be foreign delegates.

A special feature of the Summit is a round-table conference of the heads of all these Accounting bodies on the sidelines of the Summit to evolve a global strategy for repositioning the management accounting profession.

The Institute of Cost and Works Accountants of India (ICWAI) was set up by an Act of Parliament i.e., the Cost and Works Accountants Act, 1959. ICWAI is now bracing itself to a new leadership role in the global scenario.

The event holds a special significance to the Indian economy as it is surging forward at a high growth rate with many business enterprises and institutions spreading their wings and taking on a global role encouraged by the environment and the motivation provided by the present Government.

Click here to read more on Press Information Bureau Website

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Regards,

Santosh Puthran

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