The True Meaning and the Responsibilities Entailed In the Management Accounting Jobs
Management accountant job mainly entails in it the provisions as well as the use of the accounting information to the internal managers within the organization so that they can make some informed business decisions. The management accountant job is a lot different than the other important segment of accountancy known as the financial accounting. In the management accounting jobs all the financial reports as well as the other financial information is meant only for the internal management and not for the outsiders like the share holders, stock holders, investors and the other outside agencies. Another important aspect of the management accounting jobs is that it is more forward looking rather than historical. The management accounting information is prepared while using the management information systems instead of the financial accounting standards. The bottom line is that the management accounting jobs are solely oriented towards being used by the internal management of the organization.
Considering the definition of the Chartered Institute of the Management Accountants (CIMA) the management accounting job can be defined as “the process of identification, measurement, accumulation, analysis, preparation, interpretation, and communication of information used by management to plan, evaluate, and control within an entity, and to assure appropriate use of and accountability for its resources. Management accounting also comprises the preparation of financial reports for non-management groups such as shareholders, creditors, regulatory agencies and tax authorities" (CIMA Official Terminology). The main activities that a management accountant is supposed to perform are the performing variance analysis, forecasting as well as planning, reviewing and monitoring costs that are a part of the business and are accountable to the finance and the business teams.
Very often an alternate view of the management accounting is used to define it. According to this view the management accounting job is an instrument to control through surveillance. In other words it can be stated that the management accounting information is the system that is used by the internal managers to have an overview of the entire internal structure of the organization in order to facilitate the control functions within the management.
Some of the tasks that are included in the management accounting jobs are: