PACE Academic IG

Introduction

Accounting programs at colleges and universities provide accounting majors with a broad range of courses.  The broadness of courses provides students with opportunities to prepare for careers in public accounting or management accounting.  In my experience, I have found the emphasis to be more greatly placed on careers in public accounting, which can have negative effects on students who are unable to obtain employment in public accounting.  Every accounting major will not obtain employment in public accounting, but that does not reflect failure in the student because management accounting provides an alternative for accounting majors to pursue fulfilling and rewarding careers.  This article will be the first in a series of articles supporting the creation of management accounting degree programs in colleges and universities.

Proposal

Reasoning

History is a great teacher, and history has taught us that change in business activities is inevitable.  Technology is the most notable change, as in my professional life I have seen the emergence of software applications like Excel, enterprise resource planning (ERP) applications like SAP, and of course, artificial intelligence (AI).  Technology is not the only change in business activities.  Management philosophies like activity-based management (ABM) has encouraged the development of cost accounting systems like activity-based costing (ABC).  An increased awareness of a company’s social responsibility, previously labeled corporate social responsibility (CSR), now labeled environmental social and governance (ESG) has developed the development of accounting systems like integrated reporting (IR).

Another lesson that history has taught us is businesses begin anew and can renew.  Beginning anew is commonly called a startup, in which I have had experience in not only private industry but also private practice.  A startup provides opportunities to make valuable contributions to the startup’s development and expansion, contributions I know from my experience that was built on a management accounting foundation.  Renewal is commonly called a turnaround, in which I have had experience in working with turnaround consulting firms.  Turnaround consulting firms were clients because of not only my hands-on, feet-on-the-floor approach but also my expertise in management accounting.

Organization

The organization of a management accounting degree program is centered on the following elements:

1.     Required courses

2.     Elective courses

3.     Employment

Each element will be addressed in greater detail in future articles.

Challenge

The immediate challenge is to convince people at colleges and universities in the United States to put a management accounting degree program into practice.  I specify the United States because of the emphasis accounting programs in the United States place on employment in public accounting.  The emphasis is gaining greater support because of the increased employment opportunities in public accounting.  The increased employment opportunities are due to the number of available positions in public accounting being as people leave the profession.  That does not mean that every accounting major will obtain employment in public accounting, which means that they must be prepared for employment as management accountants, and the challenge is to convince people that employment as management accountants is as meaningful as or perhaps more meaningful than employment in public accounting.

The challenge will be an important part of future articles describing the implementation of a management accounting degree program.

Conclusion

Accounting was, is, and will be an important part of any organization.  Whether the organization is for profit or non-profit, privately held or publicly traded, a startup or a multi-national corporation, the ability to exist over the long-term will provide opportunities for management accountants to improve the well-being of the organization, its stakeholders, and themselves.  Management accountants must be prepared to improve the well-being of themselves and others, which begins with a question to those who develop degree programs in colleges and universities:

Why not a degree in management accounting?