Briefing Document:

Management accounting and financial accounting positions

INTRODUCTION:
What is the purpose for seeking to create the position for management accounting and financial
accounting positions?
As the financial controller (Chief Accounting Officer) for the manufacturing organization responsible for
both financial and management accounting, I am seeking to create two new separate positions for the
financial and the management accounting system. The financial accounting system will be dealing with
internal audits and the management accounting will forecast its objectives on implementing growth and
profit for the organization.
POSITION:
How is management accounting different from financial accounting?
To relief the task at hand, the position of management accounting and financial accounting are two
separate accounting systems that need attention. Financial accounting focuses on reporting to external
parties such as investors, government agencies, banks, and suppliers. It measures and records business
transactions and provides financial statements that are based on generally accepted accounting principles
(GAAP). Management accounting measures, analyzes, and reports financial and nonfinancial information
that helps managers make decisions to fulfill the goals of an organization. Managers use management
accounting information to develop, communicate, and implement strategy (Horngren, Datar, & Rajan,
2012).

JOB DESCRIPTION:
What is the management accountant and financial accountant responsible for?
Management accountants look after a company’s accounts. They advise managers about the financial
implications of business decisions to aid growth and profit.
The management accountant is responsible for:

 preparing reports, budgets, commentaries and financial statements

 undertaking financial administration and internal audits
 liaising with managerial staff and other colleagues
 supervising a team of accounting technicians
 developing and managing financial systems/policies
 negotiating and obtaining finance for major projects
 controlling and forecasting income and expenditure
 creating business strategies to generate shareholder value.
On the contrast, financial Accountant responsibilities include budgeting, managing tax payments and
performing internal audits.
The financial accountant is responsible for:

 Gather and monitor financial data (e.g. sales revenues and liabilities)
  Prepare monthly, quarterly and annual statements (balance sheets and income statements)
 Forecast costs and revenues
 Manage tax payments
 Organize internal audits
 Prepare budgets (for the entire company and by department)
 Monitor and report on accounting discrepancies
 Conduct detailed risk analyses to assess potential investments
 Analyze financial trends
 Perform month-end and year-end close processes.
COMPETENCY:
What are the key competencies for having a management accountant and a financial accountant?
The accountants will have the following requirements;
 A Strategic Ability that displays the ability to think and act strategically. Thinks long term. Can
translate organizational mission and vision into clear specific and achievable objectives.
Demonstrates innovation and creativity to secure successful strategic outcomes.
 Political Awareness, where the accountant must have a clear understanding of the political
reality and context of the organization.
 Networking and Representing of information. Able to develops and maintain positive and
mutually beneficial relationships. Builds networks of technical and professional contacts.
Promotes and sustains an appropriate, positive, and cohesive image for the organization it
represents.
 Bringing about Change to the organizations perspective on the changing economic
environment. Effectively introduces change, fosters a culture of creativity in employees and
overcomes resistance to change. Demonstrates flexibility and an openness to change.
 Problem Solving and Decision Making. Can pinpoint critical information and address issues
logically. Understands the context and impact of decisions made. Can act decisively with
complex information and multiple stakeholders.
 Operational Planning of the organization. Plans projects to determine rationale, objectives and
deliverables, resource requirements, timelines and milestones, reporting requirements, and
evaluation methods. Establishes high quality service and customer care standards.
 Delivering Quality Outcomes promotes the achievement in delivering services. Organizes the
delivery of services to meet or exceed the required standard through collaborating with,
instructing and motivating employees and by managing resources effectively.
 Leading and Motivating others individually and in teams to deliver high quality work and
customer focused outcomes. Develops effective and productive workplace relationships. Leads by
example in terms of commitment, flexibility and a strong customer service ethos.
 Managing Performance effectively. Empowers people to achieve or exceed organizational goals
by delegating sufficient authority, responsibility and accountability.
 Communicating Effectively. Has highly effective verbal and written communication skills.
Presents ideas effectively to individuals and groups.
 Relevant Knowledge by keeping up to date with current developments, trends and best practice
in their area of responsibility. Demonstrates the required specialist knowledge, understanding and
training for the role. Has strong knowledge and understanding in relation to statutory obligations
of Health and Safety legislation and its application in the workplace.
  Resilience and Personal Well Being esteem. Demonstrates appropriate and positive self-
confidence. Remains calm under pressure and operates effectively in an environment with
significant complexity and pace.
 Integrity for which behaves in an honest, trustworthy and respectful manner and is transparent,
fair and consistent in dealing with others.
 Personal Motivation, Initiative and Achievement. Is enthusiastic about the role and sets
challenging goals to achieve high quality outcomes. Is self-motivated and persistent when faced
with difficulties. Engages in regular critical reflection in order to identify how own performance
can be improved.
DECISION MAKING:
How does the management accounting and finance accounting support mangers in making wise
economical decisions?
In order for an organization to achieve its organizational goals and ensure the future benefit of the
organization there must be proper accounting systems in place. Economic events and transactions, such as
sales and materials purchases, and process the data into information helpful to managers, sales
representatives, production supervisors, and others. Processing any economic transaction means
collecting, categorizing, summarizing, and analyzing. For example, costs are collected by category, such
as materials, labor, and shipping. These costs are then summarized to determine total costs by month,
quarter, or year. The results are analyzed to evaluate, say, how costs have changed relative to revenues
from one period to the next. Accounting systems provide the information found in the income statement,
the balance sheet, the statement of cash flow, and in performance reports, such as the cost of serving
customers or running an advertising campaign. Managers use accounting information to administer the
activities, businesses, or functional areas they oversee and to coordinate those activities, businesses, or
functions within the framework of the organization. Understanding this information is essential for
managers to do their jobs (Horngren et al., 2012).
To forecast, management accounting and financial accounting are both essential positions that are to be
created separately. They play an important role in sustaining the organization by providing economic
strategized information to both internal and external parties. With implementation of this two positions,
financial performance and the running of the organization will be successful.
References
Horngren, C. T., Sundem, G. L., & Horngren, W. O. (1926-2011). Introduction to management
accounting.

Target jobs. (n.d.). Retrieved August 2, 2019, from Target jobs wesite: https://targetjobs.co.uk/careers-
advice/job-descriptions/280595-management-accountant-job-description

Workable. (n.d.). Retrieved August 1, 2019, from Resources Workable:

https://resources.workable.com/financial-accountant-job-description

Name: Malcolm Tumana

ID#: 180148
Class: BS2-B