Partner Article

Management Accountants share experience in uncertain times

Local management accountants and businesses shared experience at a Chartered Institute of Management Accountants (CIMA) half day conference after it was revealed that only 38% of UK businesses are optimistic about prospects for their own company and there are even greater concerns about the domestic economy with plans for key spending on areas such as training, IT and capital down.

The negative picture comes from the CGMA Global Economic Forecast released in the last week by CIMA and the American Institute of CPAs (AICPA).The quarterly forecast polled 600 management accountants from more than 60 countries on global and domestic economic conditions and the outlook for their organisations over the next 12 months.

The Forecast revealed the top UK Challenges as being domestic economic conditions, global economic conditions and domestic competition. Less respondents are optimistic about the domestic economy in the UK than 3 months ago (15% in 2Q down from 17% in 1Q 2012) and only 14% of UK respondents are optimistic about the global economy as a whole. Only 38% of UK respondents are currently optimistic about the prospects for their own businesses, down from 54% in 1Q.

Along with revenue and profit projections being down and headcounts now expected to be flat over the next 12 months, expectations for spending for training and other capital have become negative with UK companies expecting to spend no more on IT and less on capital (-0.1%) and training (-0.6%).

Local businesses are presenting to the area’s management accountants to help them through these tough economic conditions at the CIMA half day conference ‘North East England: growth in uncertain times’. The event was held at the Copthorne Hotel Newcastle, Newcastle upon Tyne on Friday 13th July 2012. Local presenters included:

• Brenda Readman-Bell ACMA, Group Finance and IT Director at J Barbour and Sons Ltd shared how she uses her management accountancy skills to keep Barbour strong

• David Wilson, Practice Principal at NEMONEYifa gave an overview of how to account for the compulsory pension changes being implemented from October 2012

• Will Fatherley, Managing Director at March ThirtyOne Ltd presented on how to remove waste and increase efficiencies

• Andy MacLellan, Operations Manager, Onyx Group presented an insight into cloud computing and how it can provide the opportunity to run IT mre effectively and cost efficiently

Rebecca Gooch ACMA, CIMA North East Coast Branch Chairman said: “Our survey shows there is still a risk of a knee jerk reaction by organisations, with economic pessimism leading to an investment freeze on areas that are the bedrocks of future success such as training, recruitment, R&D and capital investment. Organisations should resist short-term pressure from the investment community and not be distracted from their longer term growth plans. They should turn to the management accountants in their business, who, like financial athletes, can help boards better understand what needs to be done to win in today’s competitive market. This event provides an excellent opportunity to learn from other local businesses about how they are working in these difficult times.”

This was posted in Bdaily's Members' News section by CIMA UK Regional News .