My assignment submission is entirely my own work and I understand the consequences of plagiarism

The purpose of this task 1 is to demonstrate the ability to understand the management accounting system as well as to compare how the business can use their accounting accounts to overcome financial problems to report to the General Assembly shareholders in interest in financial governance, expanding business operations and improving efficiency. Management Accounting and Management Accountant Management accounting is understood as the process of preparing to provide financial resources and information, including timely and accurate financial planning and forecasts for managers in decision making. The management accountant will be in the duty of

1
ASSIGNMENT 1 FRONT SHEET
Qualification BTEC Level 4 HND Diploma in Business
Unit number and title
Submission date Date Received 1st submission
Re-submission Date Date Received 2nd submission
Student Name Pham Xuan Student ID GBD1836
Class 489-GBD0703B Assessor name Pham Uye
Student declaration
I certify that the assignment submission is entirely my own work and I fully understand the consequences of pla
making a false declaration is a form of malpractice.
Student’s signature
Grading grid
P1 P2 M1

2
 Summative Feedbacks:  Resubmission Feedbacks:
Grade: Assessor Signature: Date:
Internal Verifier’s Comments:
Signature & Date:

3
Contents
I. Introduction ...........................................................................................................................................................................4
II. Internal Accounting Activities ...............................................................................................................................4
1. Definition of Accounting ..........................................................................................................................................4
1.1. What is Accounting ................................................................................................................................................4
1.2. Management Accounting .....................................................................................................................................4
2. Main objectives in general ........................................................................................................................................5
1.1. Financial Accounting and Financial Accountant………………………………………………………………...5
1.2 Financial Accounting ..............................................................................................................................................8
3. Responsibilities of management accountant in the organization ...........................................................9
III. Financial Governance ............................................................................................................................................ 12
1. Definition of financial governance .................................................................................................................... 12
2. Importance of ethical and duties financial governance to business........................................................ 13
1.2. The responsibilities of financial governance ............................................................................................ 13
IV. Personal traits and skills of the management accountant ........................................................................... 14
1. Characteristics .......................................................................................................................................................... 14
2. Skills ............................................................................................................................................................................. 16
V. Conclusion .................................................................................................................................................................. 16

4
I. Introduction
The purpose of this task 1 is to demonstrate the ability to understand the management
accounting system as well as to compare how the business can use their management
accounts to overcome financial problems to report to the General Assembly shareholders
in interest in financial governance, expanding business operations and improving efficiency.
II. Internal Accounting Activities
1. Definition of Accounting
1.1. What is Accounting
Accounting means the process of recording the business of financial
transactions that involve organizing, storing, retrieving, summarizing,
presenting the results of the report, and various analyzes to provide
regulatory agencies, supervisory agencies, and tax authorities. The
information contained in the financial statements will be provided from
accounting. It includes management accounting and financial accounting.
(Investopedia, 2019)
1.2. Management Accounting and Management Accountant
Management accounting is understood as the process of preparing to
provide financial resources and information, including timely and
accurate financial planning and forecasts for managers in decision
making. Management accounting is allowed to be used only within the
company and never disclosed anything outside the company. The
management accountant will be in the duty of creating monthly, quarterly,
or annual reports, which are used to research and evaluate to make
decisions for how business's operation is by a management group of
companies. (Investopedia, 2019)
Management Accountant is an accountant who assists managers to
determine how to earn a profit or save money by looking at the cost of
maintaining a company and how much profit the various business parts
generate. A management accountant is likely, in a smaller firm, to oversee
lower-level accountants who are responsible for the basic accounting

5
functions of an enterprise, such as the recording of income, expenses, tax
monitoring and the use of such information to produce income reports,
cash flow reports, and balances. An accountant in management would also
review these basic data to prepare estimates, budgets, performance
measures and strategies for senior management, which will then help in
the decision-making process. They could also build and maintain a
financial system for a company and supervise its accountants and
processors (Investopedia, 2019).
1.3. Definition of Financial Accounting and Financial Accountant
Financial accounting is a special accounting division that involves a registration,
description and reporting process over a period of time, for the various financial
transactions. Such transactions are combined to document the economic
performance of the company for a given period in the preparation of financial reports
including a balance sheet, sales statement and cash flow statement. (Investopedia,
2019)
A financial Accountant is a person who will keep ensuring their financial soundness
and compliance with legal requirements and legislation, professional accountants
offer consulting services to commercial and non-commercial organizations that their
company has adequate finance, and also their company always obeys the law. They
prepare and participate in major financial choices, including mergers and
acquisitions, advantage planning and long-term financial projections, on the basis of
general ledgers. (gradireland, n.d.)
2. Main objectives in general
1.1. Management Accounting
Accounting for management is one of the four primary accounting areas.
Managerial accounting allows the sharing of specific private information not
subject to strict financial accounting compliance. The management accounting
methods include formulas and reports that generate numerical information to

6
improve the profitability of your company. A decision-making process is the
primary objective of management accounting. Chefs, advertisers, analysts, and
decision-makers can plan, control, and make informed choices in the sector
(Gartenstein, 2019).
Cash Flow: Management accounting functions also to help the company control
its resources and cash flow. Your CAF ( cash flow) report outlines your company's
revenue and production and enables you to prevent shortfalls and take full
advantage of this data efficiently.You can proactively look for funds to cover your
payroll and pay your bills if your cash-flow statement shows you are probably
not gaining enough to cover your bills during the coming month. This
management accounting report is a helpful tool to determine when you will need
an injection of capital to improve the performance in a specific season.
(Gartenstein, 2019).
Costs: Business success is vital to revenue. The costs associated with running a
business are, therefore, essential to monitor and report. The assets and liabilities
statement is the clearest example of an accounting report that shows how much
money you earn or lose at the end of the day. Custom accounts can also be
instrumental in determining the efficiency of your business. You can use this data
to identify cost patterns and potential problems if you can track effectiveness for
hours worked or for the quality of each one of your salespeople. The management
will make adjustments to reduce costs and increase the productivity of your
business through the interpretation of data in these personalized reporting
documents. (Gartenstein, 2019).
Taxes: Also, the management accounting system provides useful data on
expenditures and provides you with the data which you need to make financial
decisions in a reliable and timely way. Management accounting will help you
strategize on reducing tax responsibility, including investing in enhanced assets
during years when the company is particularly profitable and tax-deductible. Tax
liabilities are often reduced through projects. Information on management
accounting can help to identify areas in which projects can be initiated that will

7
increase profitability and maximize tax benefits in the future. (Gartenstein,
2019).
Help for future policy planning and development: Management accounting
helps the company to realize its operations. One of the best choices is to invest in
proper preparation. The plan is all about determining future actions. These
actions include determining when and by whom, what needs to be done. It also
involves choosing how to do things.
Planning involves a more practical and useful focus on future activities and their
implementation. The aid also includes budgetary control to ensure the correct
execution of the organization's business objectives. (Bhasin, 2019)
Coordination efficiency: Management accounting involves the planning and
setting of budgets for the organization's operating divisions to enable them to
meet the goals accordingly. Only if all departments strive to meet the objectives
can their organizational objectives be achieved.
Only by coordinating multiple departments can this be achieved. Accounting for
management involves preparing the periodic performance of the departments
concerned. The communication between the various departments is much
needed. (Bhasin, 2019).
Resolution of critical business issues: A business is always looking forward to
improving itself. Growth is what the life of a company entails. Management
Accounting works to help to accomplish this aim. Whether you want to enter a
new company or to diversify into a different one, in these cases, management
accounting can be quite useful.
A company that offers you multiple alternatives produces several conditions. The
documents it provides can be used for these cases. Management Account It helps
you overcome these strategic business challenges and lets you decide correctly.
(Bhasin, 2019).
Control of performance: This goal is considered to be quite a handy goal and
tool to enhance the prominence of management control. Each organization will
have different functions and responsibilities to handle. Management accounting

8
will help you get each obligation center working. It also controls the quality of
each of those areas of responsibility and takes care of corrections for those
centers. (Bhasin, 2019).
Assess the effectiveness of policy: Administrative accounting tends to highlight
the leadership audit. Mainly, the leadership review involves the evaluation of the
success of the strategies adopted. This can help to update management practices
on an ongoing basis and therefore take some remedial steps if the actual results
vary from what was foreseen or planned for growth. (Bhasin, 2019).
1.2 Financial Accounting
This table below will show the Coordination efficient objectives of Financial
Accounting:
Balance sheet: The balance sheet gives an insight into how much the company
owns and owes at a certain point in time. It lists properties like cash, stock, and
real estate, such as immovables. It also divides debts into classes of long-term
loans, credit card debt, and dealer accounts. Aside from showing how much
your corporation is owned and owed, the balance sheet also shows the
allocation of these amounts and the adequacy of its assets to fund business
activities. (Gartenstein, 2019)
Profit and loss statement: The balance sheet shall be divided into three parts:
(1) capital, (2) liabilities, and (3) equity at given date equity. This financial
report tracks the income and expenses of the company over a certain period,
such as one month or one year. This indicates the sales price or the amount they
spend on direct costs such as product and manufacturing jobs. It also calculates
your gross profit or the sum left off from the gross profit and profit after the
direct damages have been removed or the amount left after general
infrastructure expenditure like rental and utilities has also been subtracted.
(Gartenstein, 2019)
Cash flow statement: This report shows how the funds flow in and out of the
company and whether the current financial commitments are met with cash. It
is not needed for tax reporting, but creditors and investors who need to

9
determine whether they can achieve their loan payments and whether they
have the resources they need to handle and grow. It is imperative. (Gartenstein,
2019)
3. Responsibilities of management accountant in the organization
The roles of management accounting are divided based on the following four
functions (Your Article Library, 2019):
- Firstly, set off the planning: Planning includes short-term preparation and
long-term planning to achieve a specific final goal. To create a good plan,
administrators need to make predictions, based on available evidence that
science to prove economic indicators will be present in the present or future.
In the planning process, administrators need to link the existing company
budget and external commercial information to see possible causes and
results in the future.
- Secondly, organizing: organizing means the setting up of organizational
frameworks and conveying the goals of the plan established by the sales
department, as well as assigning tasks to its members to operate and achieve
their goals in business. In the process of organizing activities for businesses,
it requires the manager to know how to link the departments of the
department. Besides, managers must also know how to use and manage labor
resources appropriately for the production process to make the most of the
factors to achieve the intended business goals. The organization will provide
managers with the necessary reports and information to adjust activities
promptly if the actions have unexpected changes.
- Thirdly, controlling: Control is the testing, assessment, analysis, and
correction mechanism to ensure the goals and objectives of a business
enterprise are achieved. With the use of feedback, control is executed.
Feedback is the information used for evaluating or correcting measures to
implement the plan. Feedback allows managers to decide whether to
continue the business and activity as it stands, to take corrective action to

10
reconcile specific conflicts with the original scheme and objectives or to
rearrange and replan in the middle of the day. Management accounting means
helping in the control role by providing performance evaluations and control
reports that show variances between expected and actual results. These
documents serve as a framework for the corrective measures required for
controlling operations. The use of quality and monitoring statements is
remarkably compatible with the management theory. In the case of apparent
differences between both the budgeted and actual performance, the director
will usually evaluate what is going wrong and, if necessary, that subordinates
or divisions may need assistance.
- Finally, decision-making: The decision-making of accounting management
is considered to be the most basic of these four functions. Business
performance will be affected by the decision of the manager — each of the
above three management roles – namely, scheduling, organization, and
control is responsible for decision-making. A manager can not prepare
without making decisions and must choose between conflicting goals and
methods for the achievement of selected targets. Decision making is often
based on various sources of information, but information from the accounting
department is still the most preferred because of its accuracy and reliability.
➔ + The role of accounting management in the business is to perform tasks
in a series to ensure the best financial security of the company. Accounting
managers are also responsible for dealing with all financial matters.
Therefore, it will help promote the strategic development and overall
management of the company (All Business Schools, n.d.).
+ The another role by FreshBooks (FreshBooks, n.d.)
- Accounting management has the roles to help managers to make
decisions within an organization.
- The process for the identification, analysis, interpretation, and
communication of documentation to managers is also understood as cost
accounting to help them achieve business goals.

11
- The data collected covers all accounting fields which inform the business
administration of the cost of the services and products that the company
acquires. Accountants use budgets to determine the business plan.
- Performance reports will also be used to observe the differences
between the actual results and the estimates.
➔ The duties and responsibilities of management accounting: The
Management Accountant's main task is to enable management to make
correct policy choices and improve organizational effectiveness.
The duties of Management Accountant as follows:
+ Continuous audit of all company accounts and records everywhere.
+ Prepare or authorize the regulations or general practices required to
comply with regulatory orders issued by appropriately appointed
government agencies.
+ Preparation and analysis of the company's financial statements and
documents.
+ The creation and interpretation of all corporate accounting documents.
+ Examine all assurances for the withdrawal of securities from the
company's vaults and decide that these withdrawals are made in
compliance with the regulations defined by the board of directors from
time to time.
+ Compiling distribution costs.
+ Summary of production costs
+ Preparing and filing tax returns and control of all tax matters.
+ Preparing and interpreting all corporate statistics and reports.
+ The collection and expenditure of all physical stocks
+ The establishment of the appropriate execution and documentation of
financial transactions covered by the Board or Executive Committee
minutes.
+ Preparing an annual budget for all operations of the company to be sent
to the Board of Directors before the beginning of this fiscal year as Budget

12
Director in coordination with other officers and department heads. The
Board of Directors shall establish the Controller from time to time with
respect for the veto on commitments on expenditure not permitted by the
Budget.
+ Establishment, preparation, and issue of standard practices for all
accounting, techniques, and system coordination across the corporation,
including methods, records, reports, and procedures for administrative
and office offices.
+ Maintaining sufficient information on all contracts and rentals.
+ The authorization to pay (or countersign all) checks, promissory notes,
and other negotiable corporate instruments agreed to sign by the
treasurer or by any other officer authorized by the corporate bylaws or by
the time designated by the board of director.
+ Currently established that the company's properties are appropriately
and adequately insured.
+ Maintenance of appropriate records of approved appropriations and
determination of the proper accounting of all sums expended therein.
III. Financial Governance
1. Definition of financial governance:
Financial governance is also known as Financial Management. In any organization,
financial management is a vital activity. It is the mechanism by which financial
resources are prepared, handled, regulated, and monitored to meet the organization's
objectives. It is the best method of managing an organization's commercial activities
such as fundraising cash use, transparency, transactions, risk evaluation, and
everything else that is connected to income. (FundsforNGOs, 2019).
The application of general management principles to the financial possessions of an
enterprise is financial management. Proper management of the finances of an
organization, to ensure efficient running, provides quality fuel and regular service. If
a financial organization is not managed correctly, it faces obstacles that can have
severe consequences for its growth and development. (FundsforNGOs, 2019).

13
Management of corporate finance is one of a company manager's important tasks as
proper financial management will not only help companies maximize their profits but
also help companies grow beyond their own. (FundsforNGOs, 2019).
2. Importance of ethical and duties financial governance to business
1.1 The importance of the ethical management of finance
Financial management is crucial because it ensures accurate financial data. Assists
in reorganizing funds and planning. Helping organizations with financial planning.
Assisting organizations to improve their profits. Increase the overall value of the
business. Provide stability for the organization. Supporting businesses in making
important financial decisions. Help businesses manage risk in the best way.
Financial governance is also a crucial part of the reporting and compliance
regulations. Financial management is also the result of sound financial management,
planning, budgeting, modeling, and more accurate predictability.
1.2. The responsibilities of financial governance
Finance is considered to be a significant part of any business running the business.
Financial management plays a vital role in the industry, and the information below
will clearly outline the role of financial management in the business. (Talentedge,
2019):
Financial Planning: Financial managers are willing to take responsibility for the
organization's planning of financial transactions and resources. To evaluate the
needs, the goals of the organization and the economic situation, the information
available is used, and proposals and budgets are planned.
Financial decisions and controls: Financial administration and financial managers
play a critical role in the organization's financial decision-making and financial
supervision. They employ methods such as ratio analysis, financial prediction, profit,
and loss analysis.

14
Capital Management: Financial management is responsible for assessing the
organization's capital demands from time to time and determining the structure and
structure of the capital, and selecting the source of capital financing.
Cash Flow Management: The organizations need enough working capital and cash
flow to meet their operating costs, and emergencies are of extreme importance.
Allocation and Utilization of financial resources: Financial management requires
efficient and effective use and distribution of all financial resources of the
organizations to ensure the organization's long term benefit, profitability, and
sustainability.
Disposal of Surplus: The financial managers make decisions of the companies as to
how surpluses or losses are used. They decide whether dividends are to be
distributed and how much and how much profits the business is to retain and
replenish.
Risk Management: Sound financial planning helps the company to predict threats,
execute contingency strategies, and effectively address unforeseen risks and
emergencies.
Financial Reporting: The maintains all reporting necessary for the organization's
finances and uses this as the prediction and planning database.
IV. Personal traits and skills of the management accountant
1. Characteristics
This below will be the characteristics of the Management Accountant.
Future-oriented: Management accountant is forward-looking because it helps to plan
and decide the way forward. (Business Jargons, 2019)
Excellent organization: All figures, data, and paperwork in their daily work must be
maintained by the accountants. They want to need a system to find information quickly.
Accountants should be able to organize their work in order to maximize productivity
and allow time for uninterrupted analysis and research. (AccountingWEB, 2015)

15
Beware of details: These features are clearly central to the daily reality of accountants
who need to ensure that numbers are accurate and functional. An eye for detailed
information and due care should not be sort of reminds of something they must be part
of their modus operandi. (AccountingWEB, 2015)
Creativity: Smart accountants also have creative thoughts. They practice out-of-the-
box thinking to find new solutions – some customer problems do not involve case
studies, they require extra attention and creativity. (AccountingWEB, 2015)
Skillful control of time:Today, accountants play an ever more vital role in the decision-
making process, so their timetables are full. They have to look after many tasks outside
of financial administration and can prioritize their efforts to make the most of their
working time. (AccountingWEB, 2015)
Concentrate on the customer. To be an accountant means dealing not only with
figures but also with customers. It is why accountants should be well focused on meeting
customer needs–they must understand in depth the market, sector, and client. This
alone helps them determine which tax laws or economic measures might be suitable for
the company. An accountant's advice is always of interest and the best way of making a
sector more efficient and successful. (AccountingWEB, 2015)
Full of trust: The type of information accountant is very confidential in nature every
day. One of the main features of large accountants is that they work and never share
knowledge with third parties. They are skilled. This is the best way to manage an
accounting firm and a reputation for integrity can only help to create great jobs.
(AccountingWEB, 2015)
Flexibility: Accountants capable of taking on challenges and responding effectively to
changes in office environments make up a valuable group of all organizations. Offices
are changing at an accelerated pace in the digital age, and accountants must be able to
adapt and profit from those changes. In response to regulatory changes in the industry,
a high degree of flexibility is also required–only then can quality service be delivered.
(AccountingWEB, 2015)
Good ability to communicate. It goes without saying that accountants have to be able
to communicate and work with employees from various departments. They should also

16
be able to provide nonfinancial staff with key insights–accountants can use a variety of
data visualizations to assist in communication and ensure that they understand their
insights correctly. Communication is also essential to effective customer relationships.
(AccountingWEB, 2015)
Collaboration: Accountants work together as a team and support various
departments–so that they are able to communicate their experience effectively to
consumers and decision-makers. They should experience what other people need to
know and support the team's goals, working with various professional and personality
traits. (AccountingWEB, 2015)
2. Skills
Management accounting skills refer to the skill and ability of an individual to provide all
the information needed to improve decision-making processes in the form of documents
and reports. Controlling skills allow managers to estimate the progress by assessing a
company's success or failure to achieve its objectives. Accounting management skills are
only needed for internal use and focus on business processes improvement. (Cleverism,
2019). Some skills in management accounting (TARGETjobs, 2019).
+ Good communication skills both oral and written.
+ The ability to work in a team.
+ Outstanding analytical and numerical skills.
+ Clear knowledge of the business.
+ Precision and a detailed eye.
+ Analytical thinking.
+ Financial and non-financial data analysis and explanation
+Ability to think strategies
V. Conclusion
Through this research, it helped me gain more knowledge about management accounting.
The importance of management accounting in the planning and original reporting based on
specific numbers found on the operational situation of the company. Through accounting

17
management company will set out operational goals, strategies to suit the status of the
company.

18
Biography
Investopedia. (2019). Accounting Definition. [online] Available at:
https://www.investopedia.com/terms/a/accounting.asp [Accessed 24 Nov. 2019].
All Business Schools. (n.d.). What is the Role of the Management Accountant? | All Business Schools.
[online] Available at: https://www.allbusinessschools.com/accounting/common-questions/role-of-the-
management-accountant/ [Accessed 24 Nov. 2019].
Gartenstein, D. (2019). [online] Bizfluent.com. Available at: https://bizfluent.com/about-6714179-role-
accounting-business.html [Accessed 26 Nov. 2019].
FundsforNGOs. (2019). 2. What is Financial Management?. [online] Available at:
https://www3.fundsforngos.org/financial-management/2-what-is-financial-management/ [Accessed 27
Nov. 2019].
Talentedge. (2019). The Role of Financial Management in an Organization - Talentedge Learning Series.
[online] Available at: https://talentedge.com/articles/role-financial-management-organization/ [Accessed
27 Nov. 2019].
Cleverism. (2019). Management of Accounting Skills | Definition, Importance for Career, Ways to
Improve. [online] Available at: https://www.cleverism.com/skills-and-tools/management-accounting-
skills/ [Accessed 27 Nov. 2019].
Business Jargons. (2019). What is Management Accounting? Definition, characteristics, and techniques
- Business Jargons. [online] Available at: https://businessjargons.com/management-accounting.html
[Accessed 27 Nov. 2019].
Bhasin, H. (2019). 9 Objectives of Management Accounting including Secondary Objectives. [online]
Marketing91. Available at: https://www.marketing91.com/objectives-of-management-accounting/
[Accessed 1 Dec. 2019].
TARGETjobs. (2019). Management accountant: job description. [online] Available at:
https://targetjobs.co.uk/careers-advice/job-descriptions/280595-management-accountant-job-
description [Accessed 1 Dec. 2019].
FreshBooks. (n.d.). What Is Management Accounting? | FreshBooks. [online] Available at:
https://www.freshbooks.com/hub/accounting/management-accounting [Accessed 13 Jan. 2020].
Investopedia. (2019). What Management Accountants Do. [online] Available at:
https://www.investopedia.com/articles/professionals/041713/what-management-accountants-do.asp
[Accessed 13 Jan. 2020].
gradireland. (n.d.). Financial accountant. [online] Available at: https://gradireland.com/careers-
advice/job-descriptions/financial-accountant [Accessed 13 Jan. 2020].
AccountingWEB. (2015). 10 Traits Every Great Accountant Has. [online] Available at:
https://www.accountingweb.com/community-voice/blogs/torri-myler/10-traits-every-great-accountant-
has [Accessed 14 Jan. 2020].

19
Investopedia. (2019). Financial Accounting. [online] Available at:
https://www.investopedia.com/terms/f/financialaccounting.asp [Accessed 14 Jan. 2020].