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The role of accountants has changed. Where they used to perform only traditional functions, accountants are now becoming organizational strategic partners. The Balanced Scorecard, a management system that links strategy to financial and non-financial measures in four key areas of an organization, is an excellent tool that accountants can use to solidify their position as valued members of the management team.
Introduction
In recent years, the role of accountants in organizations has changed dramatically. Terms such as "business partner" and "strategic partner" have been coined to emphasize the expanded role accountants are playing in organizations. No longer are they seen merely as "bean counters;" instead, accountants have become a valued part of the management team. No longer are accountants seen simply as gatherers of information for decisionmakers; now they have become active participants in the decision-making process.
One of the most recent developments in accounting has been the concept of the "Balanced Scorecard." This has received considerable attention, because the Scorecard includes two significant changes from traditional financial reporting. The first is an incorporation of non-financial measures, along with financial measures. The second and most important change is the alignment of these measures with organizational strategy. By bringing these elements together in an integrated fashion, the Balanced Scorecard helps top management solidify their strategies, communicate those strategies to the rest of the organization, and evaluate the organization's progress toward accomplishing their strategic objectives [5]. Accountants should embrace the Balanced Scorecard concept, and should lead the way in implementing it. In doing so, accountants can increase their value to an organization and solidify their positions as valued members of the strategic management team.
The Changing Role of Accountants
In May 1998, Peter Leitner pointed out some of the significant changes in the role of accountants. He stated in his article "Beyond the Numbers" that accounting managers, controllers, treasurers, and chief financial officers were expected by their organizations to go beyond traditional accounting functions, and operate as corporate strategists as well [7].
Further evidence of the changing role of organizational accountants occurred in March 1999, when the Institute of Management Accountants (IMA) changed the name of their major publication from `"The Management Accountant"to "Strategic Finance." The IMA's leadership felt they were not abandoning management accounting,...