Organization Structure and the Management Accountant

Learning Objective 6: Understand how management accounting fits into an organization's structure

Line and Staff Relationships
Line Management - Managing all the functions of the business that actually facilitate the business
Staff Management - Managing the support functions of the business that take care of people


The Chief Financial Officer and the Controller

CFO is in charge of:
Controllership
Tax
Treasury
Risk Management
Investor Relations
Strategic Planning

The Controller is in charge of Accounting

CFO oversees company as a whole, while Controller tends to answer directly to CFO

Management Accounting beyond the Numbers

Management Accountants need to work with more than just numbers. They also work in cross functional teams, be fact based and tough minded, lead and motivate others, communicate clearly and candidly, and they must have high integrity.

Where does Management Accounting fit into an organization's structure?

Management Accountants function as part of Staff Management, in service to the people that allow the business to run. Their roles can go as high as the CFO and Controller. Because Management Accountants need to work intimately with managers and other teams, it's important that they can fit in, be objective, inspiring, and have strong integrity.