• Register
Return to: Home > News > Corporate Finance > Finance function in Indian company evolving from cost to management accounting

Finance function in Indian company evolving from cost to management accounting

The role of the finance function in Indian company is evolving to include new responsibilities in addition to the traditional limited to the remit of cost accounting, according to a survey by the Institute of Management Accountants (IMA), the Institute of Directors India and MyCFO.

The survey received 169 responses from finance and accounting professionals working in midsize (100 to 999 employees) and large (greater than 5,000 employees) businesses.

The survey found that the traditional limited remit of the cost accountant is starting to be replaced by more expansive value creation-oriented strategic partnering role.

In some areas like statutory reporting, practices in India still more closely resemble those in emerging economies with Indian finance professionals spending 20% of their time of statutory reporting, while Chinese professionals spend 25% of their time on this task, in contrast to finance professionals globally who spend 14% of their time on this task.

In other areas on the other hand, practices in India are more closely aligned to global practice. For example Indian finance professional spend 17% of their time on strategy development, when globally finance professionals spend 16% of their time on this task. In comparison Chinese professional spend 8% of their time on this function.

“Indian companies are entering an exciting new world—one characterized by rapid economic, social, and political change. While planning, forecasting, and providing business insights are high priorities for the finance team, India’s complex tax and regulatory environment requires substantial focus and resources, which reduces their ability to focus on providing business insight,” IMA vice president of research and policy and author of the study Raef Lawson  said.

Newer finance responsibilities such as forecasting, planning, and strategy are emerging priorities, and newer management accounting techniques are being adopted, he added. “Yet Indian companies, like their counterparts elsewhere in the world, under-prioritize practices that are most effective in yielding better business insight.”

The study is available here

 

Top Content

    Choosing the right location can have cast-iron benefits

    As Game of Thrones, one of the biggest television shows of all time, comes to an end, Joe Pickard looks at how tax incentives offered to television and film production companies help the wider economy.

    read more

    Primary financial statements: a game changer in reporting?

    International Accounting Standards Board chair Hans Hoogervorst delivered a speech at the Seminario International sobre NIIF y NIF, organised by the Consejo Mexicano de Normas de Información Financiera in Mexico. The Accountant presents the highlights.

    read more

    FASB readies standards for the netflix generation

    The US Financial Accounting Standards Board (FASB) has updated its accounting standard for entertainment, with a specific eye on keeping up to date with how episodic content, such as television programmes, is consumed in the modern world. Jonathan Minter reports.

    read more

    Brexit: why it takes two to tango

    Former TA editor Vincent Huck, now editor of Insurance Asset Risk, looks at why Brexit might unleash geopolitical intrigue in Europe’s accounting standard-setting scene – and why IFRS 17 will be an incredible source of opportunity for firms in the coming years.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.