AN OVERVIEW OF MANAGEMENT

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Nov 9, 2013 (3 years and 11 months ago)

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AN OVERVIEW OF
MANAGEMENT
ACCOUNTING


Goli

Vijay Kumar

MONEY MANAGEMENT


Raise the right quantum of money from the right
source at the right time and the right place



Company has to spend money for two purposes


For creating infrastructure and other facilities (Fixed
Assets)


And to put life into them ie working capital


ACCOUNTING


The financial Accountant is there for
accounting records for reporting to the
shareholders, lenders and the Government.


Maintains in such away which help him
prepare the Annual Report , the B/S and the
P&L a/c etc.


Cost Accountant reports to the internal
management


He maintains cost
Accounting records which helps him in
preparing cost sheets and estimates.


Management Accountant analysis and
interprets the information


FINANCIAL CONTROL



After the decisions are made, they are to be
properly implemented finance manager has to
control and evaluate , in monetary terms, the
performance of the individual depts..



FINANCIAL POLICIES



Financial policies are to be carefully designed and
implemented


Accounting or control systems by themselves
cannot generate any profit.


Sound financial policies , supported by good control
systems, can.


FUNCTIONS AND GOALS
MANAGEMENT ACCOUNTANT


Cond’t


Planning
and Forecasting
Function


Modification
of Data
Function


Second good function of management accounting is to modify of
raw accounting data
.



Interpretation Function


It is also function of management accounting to do complete
interpretation of financial analysis.


Management
Control
Function


Management control can be possible only with management
accounting function.


Communication Function


Management accounting puts together all useful accounting
information with comparable past data for good communication
with govt., bankers and investors.

The Role of Management
Accountant
in the
Organization


The Role of management accountant in the organization is to
support competitive decision making by collecting, processing, and
communicating information that helps management plan, control,
and evaluate business processes and company strategy.


The interesting thing about management accounting is that it is rare
to find an individual within a company with the title of

Management Accountant
.


Often many individuals function
as accountants within the organization, but these individuals
typically operate as financial accountants, costs accountants, tax
accountants, or internal auditors. However, the ability to develop
and use good management accounting (which covers a lot more
ground than the product costing done by cost accountants) is
actually an important ability for many individuals, including finance
professionals, operational and marketing managers, top
-
level
executives, and information technologists.




Thank You