Ability and Future Effectiveness of Management Accounting Practices in Chinese Enterprises

ChinaManagementAccountingResearchCentreofExcellence中国管理会计最佳实践研究中心 ChinaManagementAccountingPractices AbilityandFuture EasyFinance&IMA Experts DirectorofResearchatIMA Dr.KipKrumwiede VPofResearchatIMA Dr.RaefLawson Acknowledgements GM,EasyFinance MarshallMa Wewouldliketoexpressourgratitudeto565financialandnonfinancialexecutiveswhoparticipatedinthe“ChinaManagementAccountingPractices:AbilityandFuture”surveyfortheirperspectivesregardingthisreport. MoreAboutEasyFinance,IMA,andCRCE Thissurvey,launchedbytheChinaManagementAccountingResearchCenterofExcellence(CRCE)(co-establishedbyEasyFinanceandIMA®),addressedfinancialmanagementstaff’sproficiencyofmanagementaccountingmethodsandtools,andtheeffectivenessofmanage-mentaccountingpracticesinChineseenterprisestoguidethefuturedevelopmentofChinesemanagementaccounting.Basedonthesurveydata,Chinesemanagementaccountingpracticehasmaderemarkableprogressoverthepast20years.However,thereismuchmoreimprove-mentneededtoenableChinesecompaniestocompetewithglobalenterprises. IMA®(InstituteofManagementAccountants)isaleadingglobalmanagementaccountantorganization.Foundedin1919astheNationalAssociationofCostAccountants(NACA),NewJersey,USA-basedIMAhasmorethan80,000membersinmorethan300branchesworldwide.IMAisanauthoritativeinternationalmanagementaccountingorganizationthatpromotesthemanagementaccountingindustryacrosstheworldbyfocusingonresearch,theCMA®(CertifiedManagementAccountant)certification,continuingeducation,andsocialnetworking,andadvo-catingthehighestethicalstandards. EasyFinancehaspartneredwithIMAtomutuallysupporteachother.Sinceitsinceptionin2004,EasyFinancehasalwaysfocusedontheresearchanddisseminationoffinancialmanagementbestpractices.Withdeeprootsinthefieldofmanagementaccounting,EasyFinancehaslongtrackedandstudiedactualproblemsincorporatefinancialmanagement,summedupthetheoriesandmodelssuitableforthefinancialmanagementreformofChineseenterprises,andactivelyspreadthemtomoreenterprises.EasyFinanceboastsmorethan21,000stablecorpo-ratecustomersandhasbecomethefinancialtrainingandconsultingserviceproviderofthebranchesorofficesof218Top500globalenterprisesinChina.It’shighlypraisedbynumeroustraineesandenterprisesandrecognizedbymanyinternationalorganizations. CRCEhasfocusedonthepracticalityandlocalizationofcorporatemanagementaccountingresearchandcarriedoutresearchandapplicationprojectsinenterprisesthroughvariousforms.Therefore,CRCEhasaprofoundunderstandingofthestatusquoandproblemsintheactualmanagementaccountingworkofenterprisesandstrivestohelpthemsolvetheirpracticalprob-lems.CRCEwillcontinuetoanalyzecommonproblemsinthedevelopmentofChinesemanage-mentaccountingandproposepracticalimprovementtrendsanddirections. ChinaManagementAccountingResearchCentreofExcellence中国管理会计最佳实践研究中心 Contents 01 TableofContent AboutthisReportPreface ReportSummary PartI:SpecificBasicInformationabouttheEnterprisesSurveyedPartII:ManagementAccountingSkills Budgeting PerformanceManagement CostManagementandDecisionAnalysisRiskManagement PartIII:FinancialFunctionsEffectivenessandChallengesObstaclestotheEffectivenessofFinancialFunctionsEffectivenessofCorporateFinancialFunctions PartIV:EffectivenessofManagementAccountinginAchievingOrganizationalGoals ImportanceofManagementAccountingObjectivestoCorporateDevelopment 01 02 03 06 11 11 13 16 18 20 20 22 24 24 EffectivenessoftheManagementAccountingDepartmenttoAchievingCorporateObjectives25ObstaclesEnterprisesAreConfrontedwithinPromotingManagementAccounting26Enterprises’EmphasisontheImportanceofPromotingManagementAccounting27 DevelopingManagementAccountingTalentsMotivatingManagementAccountingStaff PartV:PerspectivesandExpectations 02 Appendix Table1:Importanceandskilllevelofbudgeting-relatedskills Table2:Importanceandskilllevelofperformance-managementskills Table3:Importanceandskilllevelofcostmanagementanddecision-analysisskillsTable4:Importanceandskilllevelofrisk-managementskills Table5:DifficultyoftheobstaclestotheeffectivenessoffinancialfunctionsTable6:Effectivenessofcorporatefinancialfunctions Table7:ImportanceofmanagementaccountingdepartmenttoorganizationTable8:Effectivenessofthemanagementaccountingdepartment Table9:DifficultyofobstaclesinpromotingmanagementaccountingTable10:Importanceofthefactorsinpromotingmanagementaccounting Table11:ImportanceofthewaysforbuildingmanagementaccountingskillsTable12:Importanceofthewaysformotivatingmanagementaccountingstaff 28 29 30 01ChinaManagementAccountingPractices：AbilityandFuture AboutthisReport EasyFinanceManagementConsultingCo.,Ltd.(EasyFinance)andIMA®(InstituteofManagementAccountants)jointlyinitiatedthissurvey,andChinaManagementAccountingResearchCenterofExcellence(CRCE)wasinchargeoftheimplementationofthesurvey.CRCEwasjointlyfoundedbyEasyFinanceandIMAonDecember17,2013,withthegoalofhelpingChineseenterprisestransformtheirfinancialmanagementandcreatemorevaluebyusingmanagementaccountingtools. 518 ValidQuestionnaires 91.68% Validity ThissurveystudyexploresChinesefinancialprofessionals’proficiencyatmanagementaccountingmethodsandtoolsandtheeffecti