The accountant of the company or the organization has got many functions in regards to many or other aspects of the organization. They play a large role especially in determining the success of the company. The advisory role that they play gives them a higher ground in ensuring that the company becomes successful or that it fails.
Role of the Accountant
Roles of the management accountant
The accountant of the company or the organization has got many functions in regards to many or other aspects of the organization. They play a large role especially in determining the success of the company. The advisory role ...view middle of the document...
For example, when a company wants to do something or start up a project, the accountant will look at the financial books and the amount of money they have then draw up a budget that will cater for all the expenditures required. If the expenditure is so high than the business or the organization can sustain, they can do away with it. the accountant can and should be able to advice the companyâ€™s management on why they think that the project cannot work and should be dropped or why they think that the company can actually afford the planned project.
Another example is that, when a company for instance plans to hire or there is overstaffing in the company, the corporate accountant should be in a position to pass this information to the management and either advice for retrenchment when they think that they are overstaffed and requires to relieve the company of this extra burden or if they are understaffed and they need to hire more people for them to realize success. The budgets helps the company makes very good decisions especially when it comes to running the company very effectively.
The role of the management accountant in cost management technique
The company, as far as it is concerned, always look forward in managing cost. They normally aspire to use little money but get the best out of it. Therefore, the accountant is charged with the responsibility of coming up with solutions that will see the company spend little money and benefit tremendously from it. Costing is an important aspect of accounting. Everything that they do is governed with cost. If the project is too expensive and will plunge the company into debts the company should avoid it. This means that the company can only engage in what it can efficiently handle and leave that which is too expensive for them to handle. The accountant can do this through going through the budgeting cost and advice appropriately.
This means that the accountant should know the various techniques that can be used to cut costs and avoid over expenditure. The accountant will look at all ways that are available for the company to take in any project they are taking. They should be able to tell the company which way would lead to having satisfactory results while spending the least money.
Secondly, the accountant should also advice the company on what projects to do away with because they are not beneficial to the company and will not give much results as expected that would raise the companyâ€™s income. This means that it is the duty of the accountant to give the final say of how good the projects will be to the company.
The accountant should also be the first person to raise an alarm should they realize that the company is overspending. The accountant should know how to cut costs and save the companyâ€™s money. For instance, if the company has got no money to...