StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Accounting and finance - Essay Example

Cite this document
Summary
This paper discusses in detail the role management and financial accountants play in the process.
Management accountants are seen as internal business advisors…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER94.7% of users find it useful
Accounting and finance
Read Text Preview

Extract of sample "Accounting and finance"

Contents Introduction 3 Role of a Management Accountant 3 Role of Financial Accountant 4 Conclusion 4 References 6 Introduction Management and financial accountants play an important role in the effective business management of an organization. This paper discusses in detail the role management and financial accountants play in the process.Role of a Management AccountantManagement accountants are seen as internal business advisors or business consultants (Bamber et al., 2008). The main role of management accountants is to assist the management in decision making by making sense of the financial information of the organization.

Management accountants are required to provide information to the decision makes of the organization which will help them in making better and informed decisions; increase their job effectiveness and improve organizational performance (Needles et al., 2010).Management accountants play a role in all stages of a decision making process which involves planning, performing, evaluating and communicating. Their expertise in financial reporting will allow them assist in decision making process. Any business decision has to be based on sound financial knowledge and this is where management accountants are vital.

The various areas of business that management accountants play a role are: designing of business strategy, resource usage, internal control, corporate governance, safeguard tangible/intangible assets, decision making, planning and controlling activities, value enhancement, performance improvement, etc (Collier et al., 2006).The role of the management accountants is limited to only serve the internal decision makes of an organization. The focus of management accountants is forward thinking. Management accountants use the financial information and design models that predict the future financial projections.

Role of Financial AccountantFinancial accountants also play an equally important role in effective business management. The role of financial accountants is to assist all stakeholders of an organization by preparing financial statements which summarises and indicates the financial health of the organization. Financial accountants are required to prepare financial statements that assist not only internal but also external decision makers such as shareholders, owners, lenders, banks, suppliers, etc (Loughran, 2011).

Unlike management accountants, financial accountants are not seen as business consultants or advisors. The role of the financial accountants is to make the financial information of an organization available in a user friendly way to the stakeholders. Financial accountants are required to look analyse the past performance of an organization and prepare financial statements that throw light on the current financial health of the company (Needles, 2010).The role of a financial accountants ends once the financial statement is prepared.

Financial accountants are not involved in another process such as planning or implementation. The role of the financial accountants is strictly defined and they are required to accounting principles while carrying out their responsibilities. The focus of financial accountants is on historical and current financial data. Financial accountants have to be highly objective and accountable at their work.ConclusionThis paper has successfully discussed the roles of financial and management accountants in effective business management.

ReferencesBamber, L.S., Braun, K.W. & Harrison, W.T. (2008). Managerial Accounting. NJ: Prentice Hall.Collier, P.M., Berry, A.J., & Burke, G.T. (2006). Risk and Management Accounting: Best Practice Guidelines for Enterprise-wide Internal Control Procedures. MA: Elsevier.Loughran, M. (2011). Financial Accounting for Dummies. NJ: Wiley Publishing.Needles, B.E., Powers, M. & Crosson, S.V. (2010). Financial and Managerial Accounting. OH: Cengage Learning.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Accounting and finance Essay Example | Topics and Well Written Essays - 500 words - 1”, n.d.)
Accounting and finance Essay Example | Topics and Well Written Essays - 500 words - 1. Retrieved from https://studentshare.org/finance-accounting/1590450-accounting-and-finance
(Accounting and Finance Essay Example | Topics and Well Written Essays - 500 Words - 1)
Accounting and Finance Essay Example | Topics and Well Written Essays - 500 Words - 1. https://studentshare.org/finance-accounting/1590450-accounting-and-finance.
“Accounting and Finance Essay Example | Topics and Well Written Essays - 500 Words - 1”, n.d. https://studentshare.org/finance-accounting/1590450-accounting-and-finance.
  • Cited: 0 times

CHECK THESE SAMPLES OF Accounting and finance

Differences in Accounting and Finance

This essay discusses that accounting and finance always define somewhat different things in total because the applicability of the same could not be matched with any other thing.... It is required to allocate at least $ 1 million budget in order to finance all the things accordingly.... accounting is the name of recording and interpreting the data from different standpoints....
3 Pages (750 words) Case Study

Accounting and finance for managers

This ratio analyses the company's profit margin before accounting for various operating costs.... The Return on Capital Employed ratio is used to analyse a company's position in terms of the return or profit it gains on the funds invested by the company's shareholdersIt shows the effectiveness of the company's management… It shows the effectiveness and performance of the company's management to obtain more returns on the shareholders' investment....
5 Pages (1250 words) Essay

Introduction to Accounting and Finance

According to thehairthread.... om, there was a survey conducted not long ago that came up with the findings that approximately 68% of the population is the only group that is able to give a brief explanation on the… Worst still, some of the people interviewed admitted to be applying oily hair products to their hair which was already oily type....
4 Pages (1000 words) Essay

Accounting and Finance Position

accounting and finance position that will allow me to gain valuable related professional experience and be an instrumental contributor to organizational growth.... I successfully completed the Bachelor of Business Administration in Finance from the California State University and have had expansive employment opportunities in the field of accounts management, as well as accounting and finance functions.... Education Bachelor of Business Administration in finance, December 2010 California State University, Los Angeles AA Degree in Business Administration East Los Angeles College, June 2008 Work Experiences Organization Responsibilities Date KCAL Insurance Agency Claim Specialist Aug....
2 Pages (500 words) Resume/CV

Ethical Dilemma in Accounting and Finance

Ethical Dilemma in accounting and finance Ethics remains an important aspect for all professionals.... In the early period of my career, I worked in one of the accounting firms.... “Ethical Issues in accounting.... In this essay, the writer will address a personal experience describing an ethical dilemma that he faced, and how he resolved it....
2 Pages (500 words) Essay

Information Systems in Accounting and Finance

As the systems accounting officer heading the information security system for an online retail organization selling household electrical appliances, such institution would require protection against the interference of information, unauthorized disclosure, and unauthorized… Some of the resources that would need protection are the resources (channels of communication, hardware, software, operating environment, people, and the documentation) and the data (that includes the message in transit, databases and files)....
10 Pages (2500 words) Essay

Accounting and Finance in CSR Plc

The author of this case study "accounting and finance in CSR Plc" describes features of CSR company and its comparison to Bond International Software Plc.... This paper outlines profitability, efficiency, liquidity, gearing, and investor's rations.... nbsp;… CSR is maintaining very high liquidity ratios....
6 Pages (1500 words) Case Study

Personal Development in Accounting and Finance

The author of the "Personal Development in accounting and finance" essay sattest that there are various dimensions to his/her personality and it would be complex to put forward it into a narrow context.... During my study of diploma in accounting and finance, I realized that I gained more of analytical and reasoning skills.... I achieved a lot in academic perspective which helped me immensely during my career as a finance assistant and banking professional....
6 Pages (1500 words) Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us