Job Responsibilities of a Management Accountant
Management accounting is extremely useful from the perspective of present as well as future growth of an organization. Therefore, a contemporary organization cannot function without utilizing the services of a management accountant.Let us examine the role of a management accountant in present business world.
Management accountant plays a dual role for an organization. Thus the person has a double reporting relationship. Not only does he/she acts as a provider of operational and crucial financial information, but also plays the role of a strategic partner for the organization. The management accountant reports to the financial department of an organization while simultaneously managing a team of employees.
Such individuals are also responsible for breaking down the cost into processes and functions to improve cost control at every level within the business environment. Moreover, they are also responsible for suggesting alternative techniques to enhance productivity and efficiency of a business. This leads to maximization of profits.
The management accountants also need to develop certain standards for all the areas of operation. Besides this, they are responsible for evaluation of the actual performance standards in a business segment. Such activities facilitate optimal utilization of available resources. Moreover, this also helps in identification of areas associated with inefficiencies, leakages, invisible losses and wastages that the business has experienced during the last few years.
A management accountant also needs to utilize efficient software tools for maintaining an organized management information system. This is also helpful in keeping an organization updated with latest developments of the industry. Such an information system also promotes Total Quality Management and decision-making process at every level of management in any specific organization.
Apart from these, the management accountant also performs several tasks to improve the financial security of an organization. This incorporates the management of all the financial matters which drives the strategy skills and overall management of a business.
The role of a management accountant takes a variety of forms. It depends on the nature of business of an organization, the experience of the individual, industry-type and time of the year. He/she is usually involved with a variety of financial activities such as budgeting, management of assets and taxes, improvement of strategic planning and other activities.
The role of a management accountant within an organization is comparable to that of oxygen within our bodies. Like our bodies cannot survive without oxygen, an organization also cannot survive without a management accountant.