Management Accounting
The role of managerial accounting is very important to the development of a company. His role and responsibility are so great that even a miscalculation or underestimation of a business plan by a management accountant can make a companys future in jeopardy. Because Governance does not rely on individual accounting periods when recording financial information. This is a continuous accounting process that must be properly managed by the owner and staff. This process may involve the creation of internal management accounting policies that employees must follow when reporting information to the owner. In the era of economic development, accountants not only become information providers but also decision makers as well as a very important part of the management team, because they provide Internal information is useful and important to management, so management accounting helps to manage the organization more efficiently. The nature of information in management accounting is management information, not financial information alone. Before collecting administrative accounting information, you must know the purpose of the information.The traditional accountability role of managed accounting is expanding including the need for business strategy decision making. Managers of accounting today are no longer simply doing the work of counting. The financial skills of management accountants gained from experience and training have been used extensively in many corporate activities. Todays business accountants need to understand how other functional areas like marketing, finance, administration blend in with accounting decisions.Accountability of management accounting is reflected in the following four tasks: planning, directing, controlling and deciding the responsibilities of the manager.
• Planning: Management accounting involves defining goals and objectives for the organization and defining how to accomplish them by selecting specific activities.• Steer: “Monitoring the companys daily operations” and monitoring the implementation of plans to achieve the organization is required to guide its work to achieve goals,• Control: evaluate business performance against plan and adjust to keep company going towards its goals. In other words, planning and direction should be carried out to ensure effectiveness. Besides, the outstanding goal of the control is to determine the success of the planning function.• Decision-making: Management accounting includes goals, direction and control, which means immediate decision-making process, which is the new function of management accounting.A management accountant needs to be aware of everything, whether the political situation affects the market, inflation, other market risks, competition, labor costs, raw materials, operations Internal, coordination between different departments within the company as well as the rest of the business world and social media. So he should be the master of everything. He needs to outline the challenges ahead to make his organization ready for the cash crisis or any other risks. He needs to give advance notice to the company owner so that he or she can make financial decisions with consideration of available funds and requirements. The primary role of a management accounting officer in an organization is to collect and provide appropriate and timely information to managers so that they can operate and control the organizations operations and out decided.Production managers often plan and make decisions about production schedules and schedules, marketing managers make decisions about advertising, promotion and pricing, and homes. Financial management often makes decisions on capital mobilization and investment. All these managers need information for their decisions. It is the management accounting staff that will provide useful information to managers at all levels of the organization. Therefore, a requirement for management accounting staff is that they must be knowledgeable about decision-making situations of managers.