The role of managerial accounting is very different now than it was even a decade ago. In the past, managerial accountants operated in a strictly staff capacity, usually physically separated from the managers for whom they provided reports and information. Nowadays, managerial accountants serve as internal business consultants, working side-by-side in cross-functional teams with managers from all areas of the organization. Rather than isolate managerial accountants in a separate accounting department, companies now tend to locate them in the operating departments where they are working with other managers to make decisions and resolve operational problems. Managerial accountants take on leadership roles on their teams and are sought out for the valuable information they provide. The role of the accountant in leading-edge companies “has been transformed from number cruncher and financial historian to being business partner and trusted advisor.”²

An organization’s management team, on which managerial accountants play an integral role, seeks to create value for the organization by managing resources, activities, and people to achieve the organization’s goals effectively.