Research in the International Journal of Business Innovation and Research suggests that innovative accountants can play an important role in the growth and success of a firm. The study, by Kanthana Ditkaew Rajamangala of the University of Technology in Lanna Tak, Thailand, looked at the skills of accountants and found that their competency influenced company growth through two key factors: business management efficiency and financial reporting quality. The study also looked at the link between innovative accountant competency and the public image of the company, with a particular focus on how financial reporting quality plays a mediating role in that image.
Rajamangala surveyed some 441 accounting directors and used a structural equation model (SEM) to evaluate the data obtained. She found that the competence of innovative accountants within a company affects growth but that this is mediated by both business management efficiency and the quality of financial reporting. Financial acumen essentially helps drive growth by improving business operations underpinned by high-quality financial reports.
The implications of this work are quite far-reaching. In emphasizing the importance of innovative accountants within an organization, Rajamangala’s work suggests that organizations ought to prioritize the development and nurturing of innovative skills among their accountants. By doing so, they can foster a culture of innovation that drives growth and improves the overall perception of the firm.
In the near future “blockchain” technology, “artificial intelligence”, and other disruptive innovations will begin to play a role in company accounting offering new approaches to conventional transaction recording and predictions about a company’s finances. Those accountants who recognise the potential of such innovations and use them to their advantage will also be serving their companies better than those who ignore the opportunities and fail to innovate.
There is always a lot of hyperbole surrounding new technology and concerns that it will lead to redundancies in certain sectors. In the face of this, strong support for the accountant’s function requires the administrative committee to collaborate on the strategy and participate in the evolution of accounting, Rajamangala’s work suggests. Hi-tech provides us with novel and powerful tools, but we will always need the human touch.
Ditkaew, K. (2023) ‘The effect among innovative accountant competency, business management efficiency, financial reporting quality, and firm growth’, Int. J. Business Innovation and Research, Vol. 30, No. 4, pp.580–607.
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