Managerial Accountant ACC403 Module 4 Threaded Discussion

¶ … Managerial Accountant

ACC403 Module 4 Threaded Discussion Managerial Accounting 21st Century The purpose management accounting organization support competitive decision making collecting, processing, communicating information helps management plan, control, evaluate business processes company strategy.

The importance of management accounting within an organization:

Changes and evolution of the managerial accountant's role

The distinctive feature of managerial accountancy is that members of the profession work for one specific company on a consistent basis, versus being employed by a variety of clients. "The role of the management accountant is to perform a series of tasks to ensure their company's financial security, handling essentially all financial matters and thus helping to drive the business's overall management and strategy" (Role of the managerial accountant, 2012, Business Careers). Depending on the seniority of the accountant, these duties may include budgeting, tax advice and policy, managing assets within benefits packages and other forms of strategic planning (Role of the managerial accountant, 2012, Business Careers).

Accounting, particularly corporate accounting, has been increasingly in the national consciousness for the past decade, particularly in the wake of the Enron and WorldCom scandal. Inappropriate accounting techniques resulted in massive fraud that posed a danger to the world economy. The credit crisis of 2008 further underlined how concealed financial irregularities that were not transparent could be facilitated by unethical accounting. As a result of these scandals, "the face of accounting has changed. Its role in business, particularly big business, is much more complex... One upshot of the accounting scandals from the early part of this century is a new realization of the critical role accounting practitioners play in business decisions" (Accounting, 2012, Wet Feet).

As organizations themselves grow more complex, the 'managerial' aspect of the managerial accountant's job description has risen in importance. Particularly in the wake of the recent recession, there is a need for forecasting and strategic analysis in the face of economic uncertainty. Besides the "traditional earnings reporting and analysis that takes place in every organization" there is also "a renewed and heightened interest in cash-flow management" due to concerns about available credit (How has the role of a corporate accountant changed, 2009, ACBJ). Accountants have additional responsibility for the "proactive management of accounts receivable, inventory and accounts payable" to improve cash flow (How has the role of a corporate accountant changed, 2009, ACBJ). According to one accountant: "we've evaluated our tax-planning processes to see if there are legitimate opportunities for deferring the timing of cash outlays associated with our taxes" (How has the role of a corporate accountant changed, 2009, ACBJ). As profits decline, "Capital preservation is critical" (How has the role of a corporate accountant changed, 2009, ACBJ).