Management Accountant


A management accountant is a very important key person in the organization. His main job in the organization is planning and control. Planning is of two types. One is a short-term plan known as a budget. A budget is a quantitative expression of management’s short-term intentions. The budget serves also as a tool for coordinating the various activities and to the extent, the actuals compared to budget works as a tool of control. The other type of planning is called long-term plan or corporate plan or strategic plan. This type of plan is usually prepared for three to five years. Long-term plans indicate the management’s intent where the organization should reach in that period. By a series of budgets, long-term plans are reached. It is the responsibility of the management accountant to prepare both the type of plans and watch their actual performance. For this purpose, he has to re-classify the accounting data and assemble them to suit the user department’s need. He also has to scan the environment for external information. He has to be particularly careful of the performance of his competitors and try and obtain information about their long-term strategy. The management accountant should arrange for various reviews of the budget and corporate plan to take action on deviations. If the deviation or variances are seasonal he may not take steps to correct the plans; otherwise, he should modify the plan in consultation with the top management. The management accountant will undertake several special studies for capital expenditure; make or buy decisions, lease or buy decisions. It will be the responsibility of the management accountant to establish a good system for the use of management, devise all paperwork and prescribe the periodicity of reports and manner of submission. The management accountant is a part of the management when it comes to assuring that the organization operates as a unified whole in its long-run, intermediate and short-run best interests. The management accountant’s role is that of purveyor, processor and presenter of information and also a planner for the achievement of corporate goals both short and long-run.