Management accountant is that responsible person who provides accounting information for managerial decisions. He is also known as controller, accounts controller, head accountant or financial advisor. If he provides correct accounting information to management, then he can not be responsible for wrong decisions of management.
Functions of Management Accountant
1. Budget Making
For controlling managerial plan, he makes revenue and capital budget.
2. Reporting
Management accountant also calculates the variance between actual accounting and budgeted figures and its report is provided to management.
3. Evaluation of Information
Information which is provided by financial accountant is not useful for management. Management accountant evaluates all these information with management accounting tools. After this, information becomes more useful for managers.
4. Administration of Corporate Tax
Management accountant is also responsible to pay all corporate tax to govt. For this, he collect the information of corporate earning, salary, property and sale and pays VAT, payroll tax, TDS, property tax and income tax.
5. Appraisal of Fiscal Policies effect
Fiscal policies can affect business externally because fiscal policies are made by govt. but it is the duty of management accountant to analyze these fiscal policies and manages business finance according to this. Suppose, govt. has increased the tax, then management accountant has to pay according to this and show the effect of future earning.
6. Protection of Assets
These days, you are reading the news of wikileaks on the different newspaper. This is the single media factor which may be useful or harmful for the security of your assets. Suppose, if wikileaks next target is banks, then as management accountant, you have to see how to protect the asset of your banking company after leakage of sensitive information of your bank.
Functions of Management Accountant
1. Budget Making
For controlling managerial plan, he makes revenue and capital budget.
2. Reporting
Management accountant also calculates the variance between actual accounting and budgeted figures and its report is provided to management.
3. Evaluation of Information
Information which is provided by financial accountant is not useful for management. Management accountant evaluates all these information with management accounting tools. After this, information becomes more useful for managers.
4. Administration of Corporate Tax
Management accountant is also responsible to pay all corporate tax to govt. For this, he collect the information of corporate earning, salary, property and sale and pays VAT, payroll tax, TDS, property tax and income tax.
5. Appraisal of Fiscal Policies effect
Fiscal policies can affect business externally because fiscal policies are made by govt. but it is the duty of management accountant to analyze these fiscal policies and manages business finance according to this. Suppose, govt. has increased the tax, then management accountant has to pay according to this and show the effect of future earning.
6. Protection of Assets
These days, you are reading the news of wikileaks on the different newspaper. This is the single media factor which may be useful or harmful for the security of your assets. Suppose, if wikileaks next target is banks, then as management accountant, you have to see how to protect the asset of your banking company after leakage of sensitive information of your bank.
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