Unlike a financial accountant, an accountant working with the management has several areas of specializations. These areas are above and beyond which one would normally find a financial auditor performing. Some of the tasks and responsibilities can perform a financial statement are as follows: records, files types and accounting information. The preservation of their own specialty in performing services related to cash management, payroll, accounts receivable, accounts payable, inventory, or buying transactions. Finally, the financial auditor may also be involved to work at a small part of the overall administrative responsibility for an undertaking in relation to an auditor with management that has a broader view of the operation and increased responsibilities.
The following are six areas of specialization would expect an accountant management in order to achieve an effective and efficient manner in accordance with Generally Accepted Accounting Principles (GAAP):
- Accounting Information System. Management accountant in this area design and implement manual and automated systems to collect management information for better management practices.
- Financial Accounting. On the basis of the accounting data compiled by the financial accountant, management accountant prepares various reports and financial statements, and helps in analyzing, operating, investing and financial decision-making for effectiveness and efficiency.
- Cost Accounting. The cost of production or the provision of services should be measured. Further analysis is also done by an accountant working with management to determine whether the goods and services produced in the most cost-effective way.
- Budgeting. In the budget process, a senior accountant helps management develop a financial plan that positively impact profitability and improve cash flow.
- Tax Accounting. Instead of hiring a public accountant, a company can use its own administrative accountant. Thus, one can focus on tax planning, preparation of tax returns and dealing with the Internal Revenue Service and other government agencies.
- Internal Auditing. Internal auditors review the adopted by management to ensure adequate controls and procedures are followed and operational audit. Managerial accountants can verify the accuracy and timeliness of the reports to management and external parties for accuracy and compliance with laws and regulations in accordance with GAAP.
© Joseph S. Spence, Sr., 09/07/09
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Submitted by “Epulaeryu Master.”