Introduction to Managerial Accounting
Introduction to Managerial Accounting For this case assignment I am to explain the responsibilities of the management accountant for security and financial integrity in an organization. I will also explain the relationship between management accountants and financial accounts and if I foresee an expanding role for management accounting in organizations. Management accountants work within a specific company. They perform many different tasks to ensure their company’s financial security by handling essentially all financial matters and therefore helping to drive the business’s overall management and strategy.
A management accountant’s responsibilities can range widely. Level of experience, time of year, and type of industry, can find you doing anything from budgeting, handling taxes and managing assets to help determine compensation and benefits packages and aid in strategic planning. Management accountants, who are also called cost, managerial, industrial, corporate, or private accountants, record and analyze the financial information of the companies for which they work.
Some of the management accountants’ responsibilities are budgeting, performance evaluation, cost management, and asset management. Management accountants can be a part of executive teams involved in strategic planning or the development of new products. Management accountants analyze and interpret the financial information that corporate executives need in order to make important business decisions. They also prepare financial reports for other groups, including stockholders, creditors, regulatory agencies, and tax authorities.
Within accounting departments, management accountants can work in various areas, which can include financial analysis, planning and budgeting, and cost accounting. The relationship between management accountants and financial accountants is that their underlying objective is the same-to satisfy the information needs of the user, whether it’s for a specific company or for the public. It is very important to provide accurate financial information for the integrity of a company, no matter whom or which it is. Management accounting does rely on the information that is provided by financial accounting.
Management accounting relies on information that is unbiased and that can be used as support material. Both fields require on accounting information that is not only accurate, but relevant and timely. Do I foresee an expanding role for management accounting in organizations? Definitely so! Management Accountants’ job responsibilities have very much changed over the past decade. Globalization, standardization, and more stringent financial reporting requirements has brought many challenges and changes to the way accounting has been done, regulations, and ethic.
What was once known as financial record-keepers, management accountants today share the same responsibilities and skill sets with internal consultants and business analysts. Management accountants are less isolated, behaving more like financial managers by working on cross- functional teams and taking part in strategic decision.
References http://www. bls. gov/oco/ocos001. htm, Office of Occupational Statistics and Employment Projection http://www. allbusinessschools. com/faqs/management-accounting. php, © 2002-2008 All Star Directories, Inc. All Rights Reserved.