| Unlike a financial accountant, an accountant | | | | operating, investing, and financial decision making |
| working with management has various areas of | | | | for management effectiveness and efficiency. |
| specializations. These areas are above and beyond | | | | 3. Cost Accounting. The cost of producing or |
| those one would normally find a financial | | | | providing services must be measured. Further |
| accountant performing. Some of the duties and | | | | analysis is also done by an accountant working |
| responsibilities a financial account may perform are | | | | with management to determine whether the |
| as follows: records, sorts, and files accounting | | | | products and services are being produced in the |
| information. The maintaining of one's specialty in | | | | most cost-effective manner. |
| performing services covering cash management, | | | | 4. Budgeting. In the budgeting process, a |
| payroll, accounts receivable, accounts payable, | | | | managerial accountant helps management |
| inventory, or purchasing transactions. Finally, the | | | | develops a financial plan which positively impacts |
| financial accountant may also be involved in a | | | | profitability and improves cash flow. |
| small portion of the total accounting responsibility | | | | 5. Tax Accounting. Instead of hiring a public |
| for a firm as in relation to an accountant working | | | | accountant, a company may use its own |
| with management who has a broader view of the | | | | managerial accountant. For example, one may |
| operation and greater responsibilities. | | | | focus on tax planning, preparation of tax returns, |
| The following are six areas of specializations one | | | | and dealing with the Internal Revenue Service and |
| would expect a management accountant to be | | | | other governmental agencies. |
| able to perform in an effective and efficient | | | | 6. Internal Auditing. Internal auditors review the |
| manner in compliance with Generally Accepted | | | | operating and accounting control procedures |
| Accounting Principles (GAAP): | | | | adopted by management to make sure controls |
| | | | are adequate and are being followed. Managerial |
| 1. Accounting Information System. Management | | | | accountant may also monitor the accuracy and |
| accountant in this area designs and implements | | | | timeliness of the reports provided to |
| manual and computerized accounting systems to | | | | management and to external parties for accuracy |
| gather managerial information for better | | | | and compliance with rules and regulations in |
| management practices. | | | | accordance with GAAP. |
| 2. Financial Accounting. Based on the accounting | | | | © Joseph S. Spence, Sr., 9/7/09 |
| data prepared by the financial accountant, | | | | © All Rights Reserved |
| management accountant prepares various reports | | | | Submitted by "Epulaeryu Master. |
| and financial statements, and helps in analyzing, | | | | |