When COVID-19 struck, many CFOs discovered that their carefully prepared budgets became outdated within weeks. The shockwave forced companies to rethink not only their operations but also the way they plan for uncertainty. Supply chains fractured, customer expectations shifted overnight, and the traditional cadence of annual budgeting and performance reviews quickly proved inadequate. Out of this turbulence emerged a new role for management accounting: not simply recording numbers, but actively shaping resilience and sustainability strategies.

A recent study, supported by the Chartered Institute of Management Accountants (CIMA) and carried out by the Free University of Bozen-Bolzano, Queen’s University Belfast and Royal Holloway, University of London, highlights how management accountants have moved from the periphery of decision-making to its core. The research, based on case studies in the Italian garment sector, reveals that the profession is undergoing a transformation – one that could redefine how companies navigate crises and pursue long-term goals. And COVID-19 was only the beginning: energy shocks, global trade disruptions and geopolitical tensions soon reinforced the need for new approaches.

From static control to dynamic foresight

For decades, management accounting was associated with cost control, retrospective reviews and annual budgets. The study shows that this rigid model is fading fast. Organisations are now embracing rolling forecasts, scenario planning, and more frequent reviews. One executive explained that “forecasted budget wasn’t really part of the vocabulary” before the pandemic, but the crisis made long-term planning indispensable, with five-year strategies now revised quarterly or even monthly.

Such agility is not just a financial necessity. It enables companies to integrate broader environmental and social considerations into decision-making. By embedding sustainability metrics – such as carbon footprints or waste reduction targets – directly into accounting systems, firms are creating a more balanced scorecard that captures not only profits but also environmental and social responsibilities.

The sustainability imperative

Investor and consumer scrutiny on sustainability has intensified. As the CEO of one company noted, “the finance sector rewards companies with a conscious approach to sustainability.” Customers, too, are more vocal. One textile producer reported a surge of interest in recycled wool products, with new clients approaching them specifically because of their environmental credentials.

This trend comes with risks. Greenwashing – making claims without evidence – can quickly erode trust. Companies in the study emphasised the importance of verifiable data, from life cycle assessments (LCA) to environmental product declarations (EPD), to substantiate their commitments. As one sustainability manager put it, communication must be “based on numbers that are verifiable.”

In practice, this has meant integrating carbon impact data into product-level budgets, embedding ESG indicators into quarterly reports, and making sustainability outcomes visible not only to boards but also to customers.

Lessons from crisis response

The pandemic provided a laboratory for resilience. Many companies have decentralised decision-making, giving local managers more autonomy to respond quickly. They also supported vulnerable suppliers, offering temporary discounts to subcontractors in order to stabilise supply chains. At the same time, digital innovation accelerated: virtual showrooms allowed sales to continue without travel, while blockchain pilots provided end-to-end visibility on textile sourcing and production.

These practices reduced not only operational risks but also environmental footprints, showing that resilience and sustainability can reinforce each other.

Hard data, soft skills

One of the striking findings of the research is that management accounting now requires a dual skillset. On the one hand, accountants must deliver hard, verifiable data – ESG metrics, financial forecasts, risk models – to support transparency and credibility. On the other hand, they must cultivate soft skills: fostering cross-departmental collaboration, supporting employee training, and nurturing a culture of adaptability.

Weekly interdepartmental meetings, for example, became routine during the pandemic, helping teams align on goals and reflect on improvements. Such practices not only improve coordination but also instil a shared sense of responsibility for resilience and sustainability.

As one HR manager observed, “if you’re not flexible, especially in your mindset, you won’t make certain changes.” The profession is thus evolving beyond technical expertise to include leadership, communication and problem-solving.

Strategic recommendations

The study distils several practice recommendations. First, companies should adopt flexible, forward-looking approaches by using predictive analytics, rolling forecasts and scenario planning. Equally important is embedding ESG into control systems so that sustainability metrics become a standard part of budgeting and reporting. Breaking down silos is another priority: cross-functional collaboration and regular interdepartmental meetings proved essential during the pandemic. Finally, firms should increase supply-chain transparency with digital tools such as dashboards or blockchain, making risks and responsibilities visible along the entire chain.

Implementing these changes requires continuous investment in skills, from data analytics and AI to sustainability reporting and emotional intelligence. The demand is clear: accountants must be able to handle both complex datasets and complex human interactions.

Beyond the garment sector

Although the research focused on the garment industry, the lessons are widely applicable. Any business facing volatility, regulatory change or heightened stakeholder scrutiny can benefit from these practices. Industries with complex supply chains, in particular, stand to gain from integrating ESG data and scenario planning into their control systems.

The findings suggest that management accounting is becoming a cornerstone of organisational resilience, enabling companies to respond swiftly to shocks while aligning operations with long-term sustainability.

Toward a resilient profession

What emerges is a picture of a profession in transition. Management accounting is no longer confined to counting costs; it is helping organisations anticipate disruptions, build adaptive structures, and align with sustainability goals. Accountants are becoming partners in strategy, bridging the gap between numbers and values.

In a world of overlapping crises – pandemics, geopolitical instability, climate change – resilience is not just about surviving. It is about ensuring that recovery paths are sustainable, responsible, and future-oriented. For businesses, this means embedding sustainability into the heart of strategy. For management accountants, it means stepping into a leadership role, guiding organisations through uncertainty with data, foresight and collaboration.

The once quiet function of management accounting is moving centre stage. Its ability to balance financial rigour with resilience and sustainability may well prove decisive for the future of business. But is your organisation ready to make that shift?

Nicola Dalla Via, Associate Professor of Accounting at the Faculty of Economics and Management of the Free University of Bozen-Bolzano

Published in the weekly economic magazine SWZ.