Accounting: An Emerging Business Partner

Abstract

The financial services professions, and accounting in particular, are undergoing a radical transformation from a historical role of financial gatekeeper to one of strategic business partner. An industry-wide disruption is ongoing, spearheaded by a variety of factors, some of which are industry specific, while others are more broadly based. Technology, specifically real time analytics and the proliferation of what is colloquially known as Big Data, places a tremendous demand on organizations to interpret and synthesize quantitative information into the business decision making process more rapidly than in the past. In addition to these advances in technology and consumer expectations, there are several mega-trends that are creating new opportunities for finance and accounting professionals to move upward along the organizational value chain. Corporate governance, stakeholder engagement and theory, as well as the over-arching trends of sustainability and eco-friendly business models have created an increasingly dynamic and complex environment. In such an environment, managerial decision makers must be able to understand, interpret, and effectively address the requirements and concerns of a wide variety of external partners. Accounting professionals appear to be well positioned to seize on these trends and business opportunities. This research reviews the existing literature on these separate fields and links them together to create an academically valid argument for a more integrated accounting function. In essence, accounting, and the information and analytic capabilities created by the accounting function, seems to be shifting to the role of strategic business decision maker. With relationships pertaining to virtually every business function, as well as existing expertise in quantifying qualitative information, designing metrics and KPIs, and reporting information to management, accountants link market forces to business decisions that move organizations forward.