Importance of Managerial Accounting - Essay Example

The decisions made in management accounting are meant for internal users only. The internal users of information are the top managers, employees, and departments in a company. Many organizations use enterprise resource planning systems (ERP) to report, gather, arrange, and supply information and convert it into meaningful information for decision-making (Jackson, Sawyers & Jenkins, 2009).

Importance of managerial accounting
Managerial accounting is a career unit and helpful to students as it prepares them for their duties and responsibilities as future managers (Jackson, Sawyers & Jenkins, 2009). In management accounting, students are taught costing methods, decision-making techniques, and pricing methods which are the core functions of a manager. Also, students get conversant with ways to solve accounting problems like cost minimization and profit maximization techniques.
Students can acquire the main concepts in both financial and managerial accounting, which changes their attitude toward accounting as a discipline. Accounting as a profession is essential to everybody since it is practiced in all sectors. This forms the basis of future successful entrepreneurs in society. Therefore, managerial accounting matters to students as it is applicable in all careers, especially in decision-making.

Skills of a good manager
The role of a manager is beyond controlling and issuing commands and directives. There are many skills that a manager should have to manage the activities in an organization. Good communication is very vital in an organization, and without it, everything will be disorganized. Many companies look for competent leaders with good communication skills as a qualification.

Managers with reputable organizational skills tend to improve the performance of a business as they make things done in an organized manner. Businesses that are controlled by leaders with good managerial, communication, organizational, and timely skills tend to perform well in their activities.

Corporate social responsibility
Corporate social responsibility (CSR) is an idea that companies, firms, businesses, and other organizations choose to give back to society voluntarily. Through CSR, businesses have committed themselves to respecting and protecting the interest of stakeholders through interaction (Jackson, Sawyers & Jenkins, 2009). This has led to a clean atmosphere, developed society, and improved the quality of life for the people.

CSR is a moral, voluntary activity that is not enforced and is governed by the law. CSR is seen as a way of restoring corporate responsibility as it came at the time of the Enron scandals in the US. Also, there was an economic depression as a result of business failures at the time. This brought laws that govern the duties of managers, administrators, auditors, and legal representatives to restore public confidence in their duties and the integrity of businesses (Jackson, Sawyers & Jenkins, 2009).

CSR plays an essential role in businesses as people get to know the services and products a company deals with in the process of giving back to society. It is easy for a business to gain more customers and this will lead to increased sales. Businesses are credited for loans and grants from the financiers and the government through CSR. This has led to the growth of businesses and many organizations have become more responsive to society.