Roles And Activities Of Management Accounting Essay

Managerial accounting focuses on the needs of internal users (managers) and on data relevant for decision making.

Hilton, R. (2011). Managerial accounting: Creating value in a dynamic business environment (9th Ed.). McGraw-Hill. Hardcover ISBN: 9780073526928.

S., & Hassan, M. K. (2012). The domination of financial accounting on managerial Commerce & Management, 22(4), 306-327. doi:10.1108/10569211211284502

Dynamic companies use their internal budgets to make course adjustments throughout the year. For instance, if a product or service is not doing well in the first half of the year in comparison to the forecast or budget, the management team can use that information to make necessary changes or to scale back operations until market trends or the economy changes. Managerial accounts are the value creator for the organization (Collier, 2003). Their forward-looking capacity will help the organization to plan and make decisions for future profitability. The management accountants have a dual role to perform in an organization. The management accountant works as a strategic partner to provide strategic based financial and operational information (Collier, 2003). They are also responsible for business team management in organizations. The management accountant plays a prominent role in preparing financial reports, risk, and regulatory reporting, aggregating financial information, forecasting and planning important organizational information. Managerial accountants often perform cost analysis of products and divisions, which include variable and fixed costs. The production decisions made by managers are a direct result of information received from managerial accountants.

Critically examine the above statements by analysing the contribution of traditional management accounting techniques in an organisation, the necessity for modern management accounting techniques and the role of accountants in the implementation of the modern management accounting techniques in an organisation.

Accounting information systems (AIS) are useful instruments businesses use in the management of business activities. The kind of system installed depends on the size, nature of a business and the objectives managers have. One common objective though is that to minimise cost and increase

The professional body for management accountants CIMA, defines management accounting as ‘the application of the principles of accounting and financial management to create, protect, preserve and increase value for the stakeholders of for profit and non- profit enterprises in the public and private sectors. Management accounting is

Miller, P & O’Leary, T 1997, ‘Accounting and the Construction of the Governable Person’, Accounting, Organizations and Society, vol.12, n.03, pp235-265.

This paper talks about tools and technology and their effects on managerial accounting. It is clarifying Systems, Applications & Products in Data Processing (SAP) which is one of the most popular and important software in these days and many companies are using this software to manage their supply chain and managerial accounting procedures. Later, it will talk about SAP features, financial staff and their value related to SAP, technology effects on business, and trends.

The chief accountant of an organization has the tremendous responsibility of establishing and administering accurate, transparent, fraud-free accounting reports. To successfully fulfill the duty, the chief accountant must be ethical and knowledgeable. The chief accountant must be knowledgeable of the managerial account as well as the financial account. Since the accounting reports of an organization are of interests to so many entities, the media with its reporters will want to make sure that there are accuracy and integrity with the details. A good understanding of the managerial account is of crucial importance for the chief accountant. According to Hitzig (2004), and Edmonds et al. (2011), the integrity of the staff will be challenged to bring effective, efficient and useful data if the chief accountant is not savvy in financial and managerial accounting.

Managerial Accounting reports are primarily used by supervisors, line managers, process owners, as well as executives, to gain a better understanding of the current financial and operational health of the organization. (Internal)

Feedback: The specific purpose of management accounting is to provide information for decision-making authority, for decision-making support, and evaluating and rewarding decision-making performance. LO 4

Modern accounting systems have become the foundation from which the modern organization can rely and depend upon to maintain a strong efficient strategy that will help the organization grow. The modern accounting systems embraces the old accounting practices that have been used for hundreds of years and builds upon that platform to give modern organizations control over the finances. There must be set in place internal controls to keep the company assets from being stolen and that is why modern accounting systems utilizes many internal controls with the organization. The modern accounting system is one of the most valuable assets that a modern organization has in its possession because modern accounting systems make better use of the

The accountant is responsible for the machines and technology that is available to him/her in dispensing his/her duties. Therefore an accounting issue that arises in business due to technological issues can be traced back to the individual machine and technology where the holder of such technology is held responsible. Such a violation will be treated as a fracture in the accounting code of ethics associated with the use of the machines, software, or other technology’ used. The individual accountant will then be held liable. More often, accountants find themselves in tight positions while preparing financial reports. Therefore an individual’s integrity, objectivity, and professional competence are key components for an accountant, especially when they use technology (Hall, 2008).

Accountants are also responsible for developing, implementing and modifying recordkeeping and accounting systems, they need to be able to use up to date technology to make their jobs much more sufficient.