The importance on MA in HR
Human resources oversees the people assets that push and pull an organization toward its goals and objectives. Senior management regards HR policies and programs as success factors because they guide worker performance, which has an impact on profitability. Successful HR professionals in today's competitive global market need to be financially intelligent. Like their counterparts in sales and marketing, they need to understand the language spoken by management: accounting. Budgeting
HR managers develop and control departmental budgets. An accounting background prepares them to regard budgeted items such as training, recruitment, staffing, incentives and performance evaluation in terms of their cost and dollar benefit to the organization. When accompanied by and based upon payback analyses, HR budget requests give senior management the information it needs to decide how to allocate available funds. Exposure to accounting also helps an HR manager appreciate corporate cash flow in the budgeting process. Employee vacation costs, for example, might be charged monthly rather than when actually incurred for quarterly financial reporting.
Managerial accounting is also helpful when it comes to proposing changes or introducing new policies. Belief that the new activity will solve a problem is not enough; the cost must be justified. The HR manager must anticipate senior management’s questions. If he/she has studied accounting, he/she will be able to demonstrate the viability of his/her idea in dollar terms. This approach presents new-hire orientation as a profit-contributing business driver, not merely an HR nicety. The HR manager should be able to write proposals that show management how an investment in HR can increase productivity and improve profitability. Without this ability, HR professionals will be unable to convince management of the