Accounting: An Emerging Business Partner
Journal of Finance and Accounting
Volume 2, Issue 6-2, December 2014, Pages: 6-10
Received: Dec. 7, 2014;
Accepted: Dec. 26, 2014;
Published: Feb. 1, 2015
Views 4287 Downloads 223
Sean Stein Smith, Department of Taxation, Accounting, and Law, Fairleigh Dickinson University, Teaneck, New Jersey
Follow on us
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.
Strategic Accounting, Finance, Corporate Governance, Strategy, CPAs, Sustainability, Stakeholder Theory
To cite this article
Sean Stein Smith,
Accounting: An Emerging Business Partner, Journal of Finance and Accounting. Special Issue: Emerging Trends in Finance and Accounting.
Vol. 2, No. 6-2,
2014, pp. 6-10.
Starbuck, W. H. (2014). Why corporate governance deserves serious and creative thought. Academy of Management Perspectives, 28(1), 15–21. doi:10.5465/amp.2013.0109
Bell, R., Filatotchev, I., & Aguilera, R. V. (2014). Corporate governance and investors’ perceptions of foreign IPO value: An institutional perspective. Academy of Management Journal, 57(1), 301–320. doi:10.5465/amj.2011.0146
Smith, S. (2014). The expanding role of CPAs in a changing business environment. CPA Journal, 84(6), 13-14. Print.
Alimehmeti, G., & Paletta, A. (2014). Corporate governance indexes: The confounding effects of using different measures. Journal of Applied Economics & Business Research, 4(1), 64–79.Retrieved from http://www.aebrjournal.org/uploads/6/6/2/2/6622240/joaebrmarch2014_64_79.pdf
Klettner, A., Clarke, T., & Boersma, M. (2014). The governance of corporate sustainability: Empirical insights into the development, leadership and implementation of responsible business strategy. Journal of Business Ethics, 122(1), 145–165. doi:10.1007/s10551-013-1750-y
Roth, H. P. (2014, March). Is integrated reporting in the future? CPA Journal, 62–67. Print.
Simpson, S., Fischer, B. D., & Rhode, M. (2013). The conscious capitalism philosophy pay off: A qualitative and financial analysis of conscious capitalism corporations. Journal of Leadership, Accountability & Ethics, 10(4), 19–29. Retrieved from http://www.na-businesspress.com/jlae/simpsons_web10_4_.pdf
Hughen, L., Lulseged, A., & Upton, D. R. (2014). Improving stakeholder value through sustainability and integrated reporting. CPA Journal, 57-61. Print.
Jeffers, A. E., Lin, B., Romero, S., & DeGaetano, L. A. (2014, March). Is it time for companies to capitalize on sustainability? CPA Journal, 6–10. Print.
Eccles, R. G., Krzus, M. P., Rogers, J., & Serafeim, G. (2012). The need for sector-specific materiality and sustainability reporting standards. Journal of Applied Corporate Finance, 24(2), 65. doi:10.1111/j.1745-6622.2012.00380.x