In the beginning of accounting, accountant was the management accountant. All functions of accounting was done by him. After revolution of business, management accountant came into the existence. Management accountant is an important officer in the company who is responsible to analyze the accounting and financial statement which is provided by financial accountant. He is also responsible for simplifying accounting data which will be used by different departments' managers. Time to time, management accountant helps department managers for providing any accounting input data.
1. As a Reporter
Management accountant works as a reporter. He makes the reports of the performance of company's different plans. He compare company's project performance with project's standard. He calculates the deviations and includes variance in his report. He also makes the report on the financial health of company after interpretation of different raw financial data.
2. As Evaluator
Management accountant also plays a role of Evaluator. He evaluate company's assets. He evaluate company's financial position by comparing past data and other company's financial data.
3. Internal Controller
Management accountant works as internal controller. He controls the fund by making budgets. He tries to best to stop the wastage of money of company. Every expense is paid on the basis of budget.
4. Management Supporter
Management accountant is the supporter of management. He calculate the different accounting ratios. All are helpful for management's future planning and decision making. He prepares cash flow and fund flow statement. With this, management can take better decision relating to effective use of cash and fund. He also give support to management for better investment decisions.
For example :
A company's management has taken decision relating to advertising. This is the small part of decisions of management. This small part of decisions is also dependent on management accountant's support. Every time, when management will make the planning, control and performance evaluation, they get accounting information from management accountant.
5. Tax Administrator
Total tax administration is under the control of management accountant. He see whether tax is paid under different govt. laws. He also evaluates the paid tax documents.
Important for Students : {This written lecture is the part of CS Accounting Notes andManagement Accounting}
1. As a Reporter
Management accountant works as a reporter. He makes the reports of the performance of company's different plans. He compare company's project performance with project's standard. He calculates the deviations and includes variance in his report. He also makes the report on the financial health of company after interpretation of different raw financial data.
2. As Evaluator
Management accountant also plays a role of Evaluator. He evaluate company's assets. He evaluate company's financial position by comparing past data and other company's financial data.
3. Internal Controller
Management accountant works as internal controller. He controls the fund by making budgets. He tries to best to stop the wastage of money of company. Every expense is paid on the basis of budget.
4. Management Supporter
Management accountant is the supporter of management. He calculate the different accounting ratios. All are helpful for management's future planning and decision making. He prepares cash flow and fund flow statement. With this, management can take better decision relating to effective use of cash and fund. He also give support to management for better investment decisions.
For example :
A company's management has taken decision relating to advertising. This is the small part of decisions of management. This small part of decisions is also dependent on management accountant's support. Every time, when management will make the planning, control and performance evaluation, they get accounting information from management accountant.
5. Tax Administrator
Total tax administration is under the control of management accountant. He see whether tax is paid under different govt. laws. He also evaluates the paid tax documents.
Important for Students : {This written lecture is the part of CS Accounting Notes andManagement Accounting}
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