IMPORTANCE OF MANAGEMENT ACCOUNTANT IN MANAGEMENT PROCESS

MANAGEMENT ACCOUNTANT.

This is a process of providing financial information and resources to managers in decision making. The
objective of management accounting is to use this statistical data and take a better and accurate
decision, controlling the enterprise, business activities and development.

MANAGEMENT PROCESS.

This is a series fundamental step to manage any activity, business or project. In order to produce
optimum results as per the defined strategy and vision. It’s a setoff system a manager uses to organize
and control the processes of on organization.

1. Planning

This are goals set to be accomplished and they can be long-term or short-term. The long-term
centralizes the future management expectations and later converted to immediate needs and detailed
plan.

Management accountant helps to establish budget procedures and prepares schedules and coordinates
short-term plans harmonize with one another. It also centralizes the various plans into one general plan
for the whole business.

2. Controlling

This is the comparison between achieved and planned performance so that deviations from the planned
can be identified and corrected.

Management accountant has to measure the actual performance and compare with standard based on
this comparison, he has to find the difference and interpret the results of operation and submit the
same to all levels of management. This is done through appropriate accounting reports for controlling.

3. Organizing

This requires a clear definition of managerial responsibilities and lines of authority and also it establishes
the internal framework in which the required activities must be carried out and designated who will
perform them.

Management accounting system allows the preparation of an internal reporting system for this
structure and suggest a more appropriate organization structure.
 4. Communication

Department are linked in a hierarchy of formal communication structure (vertically) and a staff
relationship (horizontally)

Management accountant prepares reports about performance and communicates important

information to managers that shows how well he manages his activities and highlights those issues that
require a more thorough investigation.

5. Motivation

These influencing human behaviors so that participants can identify themselves with the goals of the
organization and make decision that align to them.

Management accountant prepares performance reports that plan to motivate managers to achieve
organizational objectives and also helps in staff motivation by providing valuable assistance in
identifying the area with potential management problems and highlighting those issues for a detailed
investigation.

Conclusion

Management accounting is a complex process mainly used in the decision making by managers in order
to achieve organizational objectives and also its an important role in the management process mainly in
providing information to internal users (people in the organization) in order to make right decisions,