Report On Imda Tech Corp - Management Of Finance & Accounting

Added on -2020-02-12

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MANAGEMENTACCOUNTING
Table of Contents
INTRODUCTIONIn every business organisation, finance is very important part and in the absence ofsufficient quantity of finance no business firm can carried out its business activities andfunctions. In order to manage the finance in an appropriate manner, firm requires to effectivemanagement accounting system. With help of this system, business unit can able to prepare thecost report and financial statement which aids in manage the financial record and analyse thefinancial performance of the organisation. In a simple word it can be said that it is a process ofanalysis, interpretation, examination of accounting information which can measured byformulating of financial accounting, report and statements (Ax and Greve, 2016). Theseaccounting report and statements assist to business unit in taking the decision related toallocation of fund, developing policies and practices, maintain the daily operational plans andother purpose of the organisation. The following project report provides a depth knowledge andunderstanding about the management of finance and accounting and how it is used in the takingbusiness decisions with respect of Imda Tech corporation. It is famous manufacturing1
organisation in the UK which produce special charger for mobile telephones and other carry ongadgets for retail outlet in the UK. The importance of management accounting information as adecision making tool in the cited venture has been also discussed in this report. In addition tothis, various types of management accounting system and its implication has been also addressedin this report.TASK 1a) (i) Explanation about the management accounting and to distinguish management accountingfrom financial accountingManagement accounting is a systematic process of preparing management reports, accounts,financial statements which assists in analysing, interpreting and examining of financialinformation of the organisation. With assistance of these report and statements of account,company can easily take the relevant decision about the allocation of fund, managing the risk,daily operation related decision etc. In a simple word it can be said that management accountingis the provisions of accounting information which used in the business for taking variousbusiness related information. As per the view of (Brown and et.al., 2016) managementaccounting is a profession that involves partnering in management decision making, devisingplanning and performance management system, and providing expertise in financial reportingand control to aid management in the formulation and implementation of the business strategy.Financial accounting is quite different from the management accounting as financialaccounting considers on the financial statements which are allocated among stockholders,lenders, financial analysts and other outsides of the organisation. On the other hand managementaccounting considers on rendering information within the organisation so that its managementcan operate the company more effectively and appropriately (Daskalakis, Devanur andWeinberg, 2015). In a simple word it can be said that financial accounting is an accountingsystem which considers on the formulation of financial statements of corporation in order torender the financial information to the interested parties. On the other hand managementaccounting provides relevant information to the manager to make policies, plans and strategiesfor running the business effectively.Following are some major differences between the management accounting and financialaccounting2

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