Managerial accounting provides managers with Information to help control operations inside the company. Managerial accounting is sometimes called cost accounting, which is basically an expanded phase of general or financial accounting which provides management with the production cost, selling cost, or the cost of services that the company may provide. Managerial accountants prepare a variety of reports that help the managers focus on how well they are doing as well as how well he company is doing by comparing their production and other things to the plans that were set in advance.
Some reports also provide updates on important Indications of how many orders were received, how many orders have been back logged, how much the company has utilized the buildings capacity and last but not least their sales. Other reports are prepared during investigations into problems that have occurred, for example, a decline in profitability in a line of products.
The dfference between financial accounting and managerial accounting Is that with inancial accounting, It Is geared mostly towards producing a limited set of annual and quarterly financial statements that follow the guidelines of the Generally Accepted Accounting Principles (GAAP for short); these reports are sent to the stock holders of the company. While with Managerial accounting the reports are given to the people whom are actually managing the company every day and have knowledge of how a business environment works.
Management accounting information comes with reports of financial ratios, budget forecasts, variance analysis and cost accounting. Without management accounting Information, making these decisions would be more Iike gambling and less of a science. Which in effect could cause a company to go belly up, so to speak. Some of the different Jobs someone with a managerial accounting education are cost accountants, budget analysts and accounting managers.
These positions have responslbllltles that can be described as reviewing and allocating costs for manufactured goods, creating annual operating budgets, and supervising other accountants whilst providing support information for making decisions. To be able to et these Jobs you need prior experience but a college degree is most appreciatively helpful In helping you get the Job. The IMA Statement of Ethical Practice describes what and how an accounting professional should do.
They describe how the professional should behave with honesty, fairness, objectivity and the responsibility to maintain and finish their Job The standards on competence state that each member has a responsibility to maintain professional expertise and to continue developing their knowledge as well as their skills, to perform their duties according to the laws, regulations and technical tandards, to provide support information as well as recommendations that are accurate, clear, concise as well as given in a timely fashion, lastly to recognize and communicate their professional limitations or other constraints that would hinder a responsible Judgment as well as hinder the success in the performance of an specific activity. There are also explicit rules for confidentiality that are basically self- explanatory.
There are also some rules on integrity that are about mitigating actual conflicts of interest, to refrain from activities that would make you prejudiced towards arrying out your duties, and to not do anything that would discredit the profession. The last standard to follow is credibility which means be truthful, communicate information clearly and fairly in an objective manor, to share information that may influence information, and to always disclose delays in information. If there is ever an ethical conflict that cannot be reasonably resolved via face to face with the other party then take the issue to your immediate supervisor and if it appears that they might be involved then take it to the person higher up in the accounting food chain.
If this still seems to have no effect on the guilty party then take it to the internal audit committee or to the IMA Ethics Counselor. They should be able to help you to understand as well as possibly resolve an unethical issue that might occur. This impacts the behavior of accountants, because if they do not follow the IMA standards they may lose their professional certification, be removed from accounting positions, as well as face legal recourse; all of this depends on how inappropriate their actions were. Managerial accounts whom don’t share inappropriate accounting perations in their companies can also face these consequences. Maintaining the general public’s trust in companies is the main / primary responsibility for all managerial accountants.