Unlike a financial accountant, an accountant working with management has various areas of specializations. These areas are above and beyond those one would normally find a financial accountant performing. Some of the duties and responsibilities a financial account may perform are as follows: records, sorts, and files accounting information. The maintaining of one’s specialty in performing services covering cash management, payroll, accounts receivable, accounts payable, inventory, or purchasing transactions. Finally, the financial accountant may also be involved in a small portion of the total accounting responsibility for a firm as in relation to an accountant working with management who has a broader view of the operation and greater responsibilities.
The following are six areas of specializations one would expect a management accountant to be able to perform in an effective and efficient manner in compliance with Generally Accepted Accounting Principles (GAAP):
- Accounting Information System. Management accountant in this area designs and implements manual and computerized accounting systems to gather managerial information for better management practices.
- Financial Accounting. Based on the accounting data prepared by the financial accountant, management accountant prepares various reports and financial statements, and helps in analyzing, operating, investing, and financial decision making for management effectiveness and efficiency.
- Cost Accounting. The cost of producing or providing services must be measured. Further analysis is also done by an accountant working with management to determine whether the products and services are being produced in the most cost-effective manner.
- Budgeting. In the budgeting process, a managerial accountant helps management develops a financial plan which positively impacts profitability and improves cash flow.
- Tax Accounting. Instead of hiring a public accountant, a company may use its own managerial accountant. For example, one may focus on tax planning, preparation of tax returns, and dealing with the Internal Revenue Service and other governmental agencies.
- Internal Auditing. Internal auditors review the operating and accounting control procedures adopted by management to make sure controls are adequate and are being followed. Managerial accountant may also monitor the accuracy and timeliness of the reports provided to management and to external parties for accuracy and compliance with rules and regulations in accordance with GAAP.
© Joseph S. Spence, Sr., 9/7/09
© All Rights Reserved
Submitted by “Epulaeryu Master.”
Originally posted 2023-11-07 10:46:16.