Accountancy is a very vast field. It encompasses some of the most notable areas of financial up keeping that are essential in the present day world of business. Considering the complexities that are involved in the modern day business environment and the various technological advancements that are bolting out of the doors of technical giants, the need to keep a tack on the financial resources of the company is really very much important. Hence the importance of the accounting is very much evident. It is really important that all the organizations whether big or small have a firm grip on their financial resources and thus it is mandatory to have an efficiently functioning accountancy department.
Management accounting is one of the key branches of accounting. It is concerned with the preparation of the financial reports that are meant for the use by the internal managers as well as the decision makers in the organization to help them in taking insightful and informed decisions. Some of the basic duties that are involved in the job profile of a management accountant are the preparation of the financial reports, analyzing them as well as presenting them to the concerned authorities. The financial reports that are prepared by the management accountant are not at all based on the financial accounting standards but on the management information systems.
Since these reports are meant only for the internal management therefore they do not have to adhere to any of the global financial standards. These reports prepared by the management accountants are meant only for the internal assessment and are not for the outside agencies like the stock holders, the share holders, or the various investment agencies including banks.
The management accountants are also responsible to keep an eye on the various projects that the company has taken up. He has to make sure that the proper utilization of the resources is done and also has to decide the various modes through which the financial resources can be allocated. It is under his jurisdiction to make sure that only the profit making projects are given the best consideration. The management accountant plays an important role in deciding upon the future acquisition of processes. In nut shell, the reports as well as the analysis of the management accountants go a long way in deciding the future of the company as well as its further plans.