Six Areas of Specialization For Managerial Accountants

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Unlike a financial accountant, an accountant working with management has different areas of expertise. These areas go above and beyond what a financial accountant would typically find performing. Some of the duties and responsibilities that may be performed by a financial account are as follows: Records, sorts, and files accounting information. Maintaining one’s specialty in performing services covering cash management, payroll, accounts receivable, accounts payable, inventory or purchase transactions. Finally, the financial accountant may also be involved in a small portion of the total accounting responsibility for a firm, as opposed to an accountant working with management, who has a broader view of operations and more responsibilities. .

The following are six areas of expertise that a management accountant would be expected to be able to perform in an effective and efficient manner in compliance with generally accepted accounting principles (GAAP):

Accounting Information System. Management accountant in this field designs and implements manual and computerized accounting systems to collect managerial information for better management practices.
financial Accounting. Based on the accounting data prepared by the financial accountant, the management accountant prepares various reports and financial statements, and helps in making analysis, operating, investment and financial decisions for management effectiveness and efficiency.
cost accounting. The cost of producing or providing services must be measured. Further analysis is also performed by an accountant working with management to determine whether products and services are being produced in the most cost-effective manner.
Budgeting In the budgeting process, a managerial accountant helps management develop a financial plan that will positively impact profitability and improve cash flow.
tax accounting. Instead of hiring a public accountant, a company may use its own managerial accountant. For example, one may focus on tax planning, preparing tax returns, and dealing with the Internal Revenue Service and other government agencies.
Internal Audit. Internal auditors review the operational and accounting control procedures adopted by management to ensure that controls are adequate and are being followed. The managerial accountant may also monitor the accuracy and timeliness of reports provided to management and external parties for accuracy and compliance with rules and regulations in accordance with GAAP.

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