Management Accountant Role in an Organization

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Management
accounting

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Answer 1. Management accounting and management accountant role in an organization
Management accounting is the process which includes planning, decision making and
performance management systems and provide financial reporting and controlling to assist the
management to formulate and implement the strategies. In an organization, management
accountant plays a crucial role which includes collecting, record and reporting financial
information in the different business functions by observing and analyzing the budgets and helps
the organization in funds and allocating effectively. Management accountant requires
coordination with all the departments for making the analysis of the capital and availability of
funds (Taft, et al., 2013).
In budgeting, management accountant plays a vital role as a budget helps in ensuring to provide
coordination between the employees and management. It helps in forecasting future business and
making future plans. The system of management accounting helps in providing useful economic
and financial information. Management accountants played a significant role in installing,
developing and functioning the effective as well as an efficient management information system
(Azudin and Mansor, 2018).
Management accounting includes the procedure to prepare reports as well as accounts that help
in making effective decisions. It includes the scope of identifying the key performance for the
different business functions and collect the data for analyzing the current performance of the
organization. It helps in comparing the current performance with the expected performance.
The role played by management accountant includes the to Compare and report performance
against operational plans and standards and explain the results of operations to all management
and the owner of the business. This feature includes formulas and compilation of accounting
policy management and statistics records and special reposts as required. The management
accountant is responsible for administrating tax policies and procedures. They prepare and
supervise as well as coordinate for preparing the reports for government agencies (Azudin and
Mansor, 2018).
The management accountant main role is to help managers correct policy decisions and improve
operational efficiency. He performs staff functions and has direct authority over accounting.

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Answer 2. Scope of management accounting
The management accounting scope is to present information about accounting in an effective
way. The scopes of management accounting are financial accounting, cost accounting,
revaluation accounting, budgetary control, inventory control, taxation, and internal audit. In
financial accounting, it is required to rearranging the information which is provided by financial
accounting. Management is required to obtain full control and coordinating the operations by
designing the financial system. The functions of management accounting include planning,
organizing, controlling and making a decision. In each function of the business, management
accounting plays a crucial role in evaluating the accounting which ensures to maintain real-time
and profits. For the development of internal audits, the develoingt of a suitable internal system of
auditing is required for internal control (Taft, et al., 2013).
Financial accounting includes management accounting which helps in providing the information
which helps in planning and forecasting. Cost accounting help in providing the various
techniques for determining the manufacturing cost of products for providing services. In the case
of financial management, the planning and controlling of financial resources are included for
raising the funds and effectively utilizing (Kaplan and Atkinson, 2015).
Planning in business includes short term and long term plans, which requires the management
accounting for providing the information for making a decision. It helps the managers in
planning by analyzing the reports and estimating the effects of achieving the desired goals.
Management accounting helps in organizing with the provided reports and information for
regulating and adjusting the operations.
In the controlling function, management accounting helps in producing the reports of
performance and controls by highlighting the expected and actual performances. Management
accounting helps in making the effective decisions for the organization structure and actions to
be taken for the day to day operations (Lakmal, 2014). Management accounting helps in
assisting the management for structuring the problems of decisions. Qualitative information is
used by the management accountant for making the decisions.
Answer 3. Difference between management accountant and financial accountant

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Management accountant is responsible for all the reports which include the profits, product line,
customers and geographic region and financial accountant are responsible for the reports of the
entire business. In the case of efficiency, financial accountants reports included for the
profitability and management accountant reports included the causes of problems and fixing the
issues. Financial accountant focuses to prepare the financial statement for the organization for
providing financial information (Lambert and Sponem, 2013). The management accountant
provides the information for the managers for making the policies, plans, and strategies. The
objectives of a financial accountant are to design the supply of information by preparing a P&L
account, balance sheet for the external stakeholders. The management accountant is responsible
for designing the information of accounting for internal use. Financial accounting is considered
more objective whereas management accounting is subjective. Management accountant focuses
on the present for forecasting the future. Financial accountant focuses on the history and reports
of the past year.
Management and financial accounting are similar in identifying and measuring costs, allocating
them for different accounting period as well as allocating cost of different departments and
departments. The concepts and principles are used to cost accumulation and cost allocation in the
field of financial accounting may also apply to management accounting (Weetman, 2019). The
reports which are prepared in management accounting and financial accounting includes the
same data which are generated from the requirement of accounting and reporting of the financial
accounting.
Answer 4. Different types of cost reports
In management accounting, different types of cost reports are involved which are necessary for
planning, regulating, decision making and measure performance. According to the requirement,
the reports are generated with the help of accounting and bookkeeping.
Budget reports are produced in the management accounting which are vital to measure the
performance of the company. The budget list of the company will include the earning and
expenditure sources. The company must stay within the budget amount for achieving the goals
and mission (Langfield-Smith, et al., 2017).