Question

Management Accounting: It’s more than just crunching numbers. Discuss. (more than 500 words)

Answer 1

We all as undergraduatged dream of careet path which is money oriented, gives us work life balance, gives us a high octain life. For them, Management Accountancy is just the correct option. In its current form, Management Accounting is considered as one of the most elite and exciting job roles which not only indulges itself in number game but also research and analysing it.

The main roles which Management Accountants now a days perform are:

• Advisory services
• Consulting on the project viablity
• Seting up business strategies
• Negotiating a new acquisitions
• Conducting internal audits
• Monitoring expenditures and controlling them

According to the Chartered Institute of Management Accountants, management accounting combines accounting, finance and management with the leading edge techniques needed to drive successful businesses.

A Management Accountant can serve in following roles in an organisation which are not just related with numbers ti unjustify the steriotype heldup:

Management

Management Accountant (MA) is basically involved in decision making after some years of qualification and experience of 15+ years. They hold senior positions in an organisation and have responsibilities which include project management – applying new processes and methods to achieve company objectives, and team management – offering guidance and professional direction to those directly beneath, while delegating workload.

Law

MA are highly knowlegable of rules of US GAAP and IFRS and their expertise is required in analysing and posting transactions as well as see if the transactions are correct.

Ethics and Management

MA are considered as professional practitioners of ethics with clear subjective understanding of analyzing situations which leads to ethical conflicts. They are expected to not only adhere to ethics themselves but also to look for the loop holes and look where others are failing too.

Business

Accountancy involves having a clear understanding of how businesses operate. Accountants must know how to improve a company’s (or individual client’s) circumstances, particularly the financial variety. This may include implementing complicated financial strategies which involves a lot more than just number crunching. Accountants must decide upon realistic goals for their clients, and create a ‘plan of action’ detailing the steps it will take to reach the chosen goals

Continuous learning

Finally, an accountant is responsible for keeping up-to-date with any latest developments which may affect their clients. This means they are constantly learning new information, and must remain in-the-know when it comes to any emerging accounting trends.