Question

Discuss the important roles of a management accountant in assisting the daily operation of a business.

Please answer at least minimum 2 pages

Answer 1

Answer : The role of management accountant combines accounting , finance and management to prepare internal financial reports and provide insight into business performance. The objective is to help senior management use financial information to inform business strategy , as well as contributing to decision making for the growth of the business and future success.

Management accountants use both financial and non financial data for the growth ,success and development of the organisation. They also deal with third parties, such as vendors, customers and financial institutions.

The following are the points which shows the role of management accountants in assisting the daily operations of the business.

• Financial Data Management : The accounting structure of the company is an essential components to business operation. One of the primary role of accountant involves the collection and maintenance of financial data relates to the company or firm. The accountant ensures that financial records are maintained according to the principles , procedure and policies of accounting.
• Analysis and advice : Accountants may perform certain types of analysis using financial information collected by them for making decisions. From deciding how many goods are needed in our organization , from which supplier to order ,payment of bills , the accountant handles may financial details on daily basis. Advising on business operayions can include issues such as issues related to revenue and expenditure, future commitments and future revenue expectations.
• Financial Report Preparation: Accountants prepare financial statements that may include monthly, quarterly ,yearly and annual accounts based upon the financial information that is compiled and analyzed. The financial reports may be used by a financial director or officer for the development, implementation and operation of a company.
• Regulatory and Reporting : An accountant may ensure that all the financial reports are maintained in proper format and according to the principles of accounting . They also report the information to the other departments of the organisation for their growth and easy processing.
• External Business Activities : Accountant may provide data to a public accountant , who act as a consultant , auditor and tax service professional . Corporations, nonprofits organizations and governments use management accountant to record and analyze financial information of the businesses which they are employed. They give advise to company executives , creditors ,stockholders ,regulatory agencies and tax personnel.