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.

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