Management accounting is a part of the financial accounting system. Today, due to the strong development of the market economy, financial information provided by accounting activities is increasingly important to the development of enterprises. So specifically The role of management accounting what? Together Johnson's Blog Find out through the article below.
Management accounting concepts
Managerial accounting is a new aspect of the accounting industry, which was born in the last few decades but is quickly accepted and becomes a new trend of modern accounting today.
To put it in the easiest way, these are the specialized areas of the accounting industry that help businesses, especially managers, understand the financial status of the business. Through that, the head can make optimal and most effective operating decisions.
The information that management accounting provides will play an important role in operating the business and serving the control and evaluation of that business.
In which the role of management accounting is to provide two main types of information including financial information and non-financial information. This information is collectively referred to as management information. The information provided is not merely financial information.
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The role of management accountants in business
The management accounting information It is estimated in nature, often focusing on forecast information and capable of being provided to business entities through internal reports or management documents.
In general, for enterprises, management accounting has 4 main tasks: planning; implementation organization; control, evaluation and decision making. Specifically, that role is expressed as follows:
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Build a plan
Building a plan is the strategy in the long-term future of the business or it can also be the economic and revenue targets set by the business and includes methods to achieve those goals.
In order to build a highly feasible short, medium and long-term plan, business managers need to link them with economic indicators drawn from financial accounting reports, thereby evaluating them. evaluate possible future impacts and develop the best plan.
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Organizing activities
Another use of management accounting is to support the implementation of activities in the business. This role is reflected in the ability to communicate the goals of the plan set out to other parts of the business.
To perform this role well, the manager needs to be an intermediary, able to link departments in the organization. At the same time, it is necessary to rationally use the available labor resources in the enterprise, to maximize the strengths to apply to the production and business processes, in order to achieve the set goals.
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Test and review
This is also an indispensable use, based on the figures and targets that the financial accounting report gives, managers will base and compare with the targets set by the enterprise's plan. outlined earlier. From there, take the basis to analyze and evaluate the effectiveness of implementation as well as draw limitations to continue to adjust the next business process.
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Decision-making role
This is also Basic functions of management accounting. Managers will rely on the information obtained and conduct analysis, selection, research and assessment of the situation of the business and the market to make the most accurate decisions about the business development plan. Future. So that capital efficiency is optimized, costs are saved and revenue achieved is the highest.
The role of the management accountant in the organization
Contributing significantly to the management accounting process in an enterprise are the management accountants. In which, they are the ones who directly collect and provide information to managers so that managers can have a basis to perform the tasks of operating and controlling the activities of the organization.
Therefore, a requirement for accountants is to understand the decision-making situations of managers to provide appropriate relevant information.
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Epilogue
Here are some details about The role of management accounting in the business Johnson's Blog would like to introduce to you. Don't forget to update more useful knowledge about corporate governance effectively through the following articles on our homepage.
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