How does finance transform?

We know accounting, and we also know management, so what meaning does it give to the word "management accounting"? Participate in management from the perspective of management with accounting thinking, find business problems and standardize business processes with control means, create value for enterprises, and support relevant decisions with data. Of course, performance appraisal can't be ignored.

What kind of job is management accounting?

There is an interesting phenomenon. When the job post says "management accounting", few people submit resumes. It will be changed to cost accounting in a few days, and a large wave of accounting will flood in. What does this mean? Explain that people in the industry don't know much about management accounting. If you participate in management from the perspective of accounting, then cost control is also a part of it, even internal audit. The closest thing is financial analysis, which collects feedback information related to data analysis.

The work of management accounting should not be limited to accounting work, but a kind of transcendence. Go beyond the number itself, turn the data into controllable information, and carry out relevant management control. Management accounting should be based on the process and all management links, use accounting tools, speak, control, improve and upgrade with data. As long as financial data is used in management thinking to effectively control some phenomena, it should be regarded as the work of management accounting.

What basic conditions do you need to do a good job in management accounting?

1. Be proficient in financial knowledge. This is essential, not knowing and understanding, but mastering. Can skillfully use financial information to provide data support for decision-making. Not just decision-making.

2. The necessary support of informatization. The era of big data is coming. It is also very important to master informatization, make data flexible and capture more relevant information between data.

3. Application and innovation of management accounting tools. Before opening a world, we need to prepare some axes. Using the right tools to "process" information will definitely get twice the result with half the effort.

4. Be good at finding problems; Ability to analyze problems; Ability to solve problems. What kind of truth exists under the surface of everything? What does the presentation of data represent? How to "smooth" these "data information"?

5. Familiar with production process and commercial market.

6. communication skills. Whether we collect data, understand these data and information, or even express what these information represent, we can't do without communication! Whether in writing or language, it is not only an expression, but also an exchange.

7. Mutual trust between the boss and the management accountant. Get the mutual information between the boss and the management accountant before all the work starts, or at every step of the work. If trust does not exist, questioning will hinder the smooth progress of our work. However, in all the "new" jobs, not everything can be trusted and supported by the boss, so it is more necessary to gain trust. How to get it? Tell him the truth you found. Is the truth, why worry about "unbelief"? If you still don't believe me, there's nothing you can do. Mutual trust is the basic condition for our work. Breakthrough and change are what we need to do and what we cannot do without.

How to create value for enterprises?

How does finance reflect the value it creates? Unlike sales, which can be measured by sales volume, and R&D, which can be measured by new products, we didn't improve relevant sales performance, increase market share and bring core competitiveness to the company. How do financial personnel create value for the company? Here, I want to use a case to express:

Once I went to a cooperative manufacturer to see the workshop, I suddenly found that when they unloaded the goods, they threw the raw materials directly from the truck to the ground. When they fell, the bags were damaged and the raw materials were polluted. When the manufacturer inspected the goods, he said that the raw materials were unqualified and should be returned. Some of them are not very serious, and they are directly produced. If the finished products are degraded and repaired, or customers return them, the return rate of raw materials is high, and suppliers are in a big mood. You can't find it without going to the scene. You made a book behind my back, talking about a bunch of raw material suppliers or production quality problems. Think about what will happen.

Be sure to know the data yourself. How did it come into being? Rational? The truth? How to solve and improve the abnormal phenomenon? How to maintain a good phenomenon? All these require us to think and act.

Why worry about the value of making these things?

The road of management accounting can go a long way, and the road of management accounting is based on the foot. Using accounting information resources to participate in enterprise management, management accounting does not need to do too much, and doing small things well is also management.

As Drucker said, well-managed factories are always monotonous and there are no exciting events.