A management accountant needs to know the business
A fairly obvious title to this post, but it is something we may often forget. As a management accountant you need to know how your business works, and this means getting out to the factory floor, to the process or working with those people doing the necessary tasks.
So why the old tyres Martin you may ask? Well, I recently read a two-page feature in Financial Management on how tyres are made and what happens the old ones – see here. This reminded me of some of my roles in industry. I knew nothing about making clothes or making cardboard when I joined my respective past employers. It is not that I became a technical expert in these areas, but I understood the process, what needed to be done, how the factory worked etc. And how did I learn you may ask? I learned mainly by talking to people, observing how things worked, determining how much things costs, where revenues came from etc. Then, as we updated various systems over the years, my knowledge became deeper and I started to question how some things were done, could they be improved for example. Having read the article in Financial Management, I was thinking based on my experience, if I started to work for a tyre company this would be my day one reading material.