CIMA, a professional qualification in Management Accounting in the UK is a globally recognized course. Since the very focus of the qualification is on Management Accounts, it is important to understand how it is different from other qualifications like CA etc.
Unlike CA, which is basically about auditing the company’s accounts, the role of a management accountant differs significantly and involves forecasting, analyzing and making decisions as to where to get the money for financing the company. Also, CIMA professionals are said to contribute majorly to the SME’s that in turn, plays a massive role in the growth of GDP. CIMA helps businesses in creating and preserving value which is the main role of a management accountant.
The skill sets of CIMA match the requirements for maintaining SME’s which is very important both for developing and developed markets. So, whether it be India or England, management accountants have a major role to perform at SME’s. Keeping up with the SME’s is integral to any economy as they are a vibrant part of each one of them as they are a source of the future growth and the income of the country.
CAclubindia was recently in conversation with CIMA President Steve Swientozelskyj, here’s the video from the conversation.
Although, explaining the associations of CIMA as an institute with various government bodies and organizations regarding policy formation is complicated, it has a multi-dimensional approach that focuses on culture and hard work.CIMA doesn’t majorly work with certain local accounting bodiessince their major task is about the value proposition of business whereas the different accounting bodies have to cater with the formulation of standards etc., so it is thus restricted. So, CIMA Institute is only in collaboration with these bodies and not in competition with them. CIMA is a very active with various government bodies. They work in the public interest and are activists. When asked about comparing the Indian accountancy professions’ growth as compared to the developed countries, he answers that the accounting standards are a reflection of the governmental policies of a country.
Supporting his statement with an example, Steve talks about US & UK being such open economies in terms of business, hence, their choices of professions are elaborate. On the other hand, countries that are more nationalistic take a more nationalistic approach that leads them thinking in a more introvert way rather than a global way. An introvert approach leads to slow growth of the economies.
But nevertheless, we are a global economy and we are all moving ahead globally. On talking about the traditional accounting systems still prevalent in the business models in India, he answers that traditional accounting system is in relation to only measuring value whereas, management accounting isn’t about measuring value but, creating value. It is about growing value which is their USP. On being further questioned generically, he says consolidation, specialization, structural growth are the three areas where there’s a scope for growth and you can still dive in.
When asked about what skill sets that a pursuant should have in the management accounting field, he talks about his skill sets and says that it is no longer relevant because it is history. However, we need new vision, new minds. Digital skills have become very important nowadays. He says the foremost thing that a person needs is etiquettes, emotional intelligence and the ability to influence the growth of the business.