StudentShare solutions
Triangle menu

Financial and Management Accounting: The Contribution to Effective Business and Management - Essay Example

Not dowloaded yet

Extract of sample
Financial and Management Accounting: The Contribution to Effective Business and Management

According to the research accounting is the process of representing financial information of any business entity in the form of various financial statements which can be used by the stakeholders to help in various decision making process. Accounting can be of two forms, viz. management accounting, used for internal purposes and financial accounting, used for external purposes. Both of these accounting forms play a very critical role in any form of business. All the accounting records serve as an evidence of the occurrence of a particular monetary transaction. A reliable and relevant accounting record helps any government institutions manage its various resources and also the accountability of any business management while taking any decisions is held responsible through correct and proper financial information. Earlier, accounting procedures followed by any business entity followed a traditional approach which gave way to measuring the business performance quantitatively. But now days, any modern business is more concentrated using non-financial measures to measure the business performance and it is the daily routine task of either a public or private financial institution to prepare the business performance report accordingly. Any financial institution has its own financial limitation and thus has to work within that limitation to work for the betterment of the organisation and justify the investor’s investment in the organisation. Thus, the function of Financial and Management accounting system in business organizations lies in effectively managing its financial assets, resources and regulations. 2. Financial Accounting Financial accounting is that part of accounting which is used for external purpose of a business entity and it sets out procedures to represent the accounting records of any business in a summarised form in the form of different financial statements. These financial statements are for the purpose of use by the stakeholders of an organisation for their own decision making purposes. 2.1 Role of Financial Accounting in Business Financial accounting is used by any business as a service function. Financial accounting serves for the purpose of representing the daily transaction records of a business after recording them, analyzing them, interpreting them and then reporting them in the form of financial statements. The statements of finance are documented based on a set standard used by every country that conforms to Generally Accepted Accounting Principles (GAAP) of that particular country and this is again must be accepted by the Financial or International Accounting Standard Board. In a nutshell, GAAP is the overall governing or regulatory body of accounting practices to be followed. Any business organisation is obliged to comply with these set out principles or guidelines and is a part of the legal responsibility of the organisation. The financial statements prepared by a business organisation serve as a purpose of representing the true and fair view of the business affairs that is to be used by its stakeholders for their decision making purposes. Any business concern has mainly two different disciplines of accounting. One is general accounting and the other, accounts payable. General accounting is what discussed earlier, involves analysing and ...Show more

Summary

The purpose of this paper is to evaluate and present financial and management accounting; their role in business; importance of financial and management accounting; benefits to business operations and limitations of financial and management accounting…
Author : hailie13
Financial and Management Accounting: The Contribution to Effective Business and Management essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Financial and Management Accounting: The Contribution to Effective Business and Management"
with a personal 20% discount.
Grab the best paper

Related Essays

Financial and Management Accounting: The Contribution to Effective Business and Management
This research is governed by the following research questions, which will aid in attaining objectives and aim of the research: Is there a difference between management accounting and financial accounting and does it benefit a business to incorporate both strategies in business? To understand this concept, it is of relevance to distinguish management accounting from financial accounting.
12 pages (3000 words) Essay
Financial and Management Accounting: The Contribution to Effective Business and Management
It can be derived from the report that the objective of financial accounting is to produce the financial reports like profit and loss account and balance sheet which is mainly used by the external stakeholders of the company, when the objective of management accounting is to suggest the future paths to the company management after analyzing the financial statements produced by the financial accountants and the cash flow statement.
12 pages (3000 words) Essay
Management accounting
Accountability 12 Conclusion 13 Reference 15 Abstract This study represents one of the most important areas of management accounting i.e. desirability and effectiveness of accounting for management control. Accounting is the most effective device used by managers and management for organizational control.
12 pages (3000 words) Essay
Essay on Management Accounting
This information also equips the managers and the management staff with management skills and control functions. Management accounting information has a forward outlook, as opposed to the historical outlook of financial management. Management accounting models have degrees of notion for supporting the decision making process, instead of the case based model of financial accountancy.
3 pages (750 words) Essay
Management accounting and financial accounting
The expert accounting conception and scientific accounting dexterity regarding measurement of performance, analysis, auditing and final reporting are as well pertinent to the supervision of healthy and sustainable ecological performance. With the increased international community's recognition of the ecological concerns, so has there been a simultaneously increased demand on accountants to provide comprehensive ecological costs and information on performance.
12 pages (3000 words) Essay
Financial and Management Accounting information
Management accounting is the process of identifying, recording, classifying, analysing and reporting of all cost aspects of information for management decisions, planning and control, performance evaluation, and even strategic purpose (Berry & Jarvis, 1997; Dyson, 2003; Glynn & Murphy, 1998; Wood & Sangster, 2002).
6 pages (1500 words) Essay
Financial & Management Accounting
This aspect of accounting concerns itself with learning about the effect an organisation has on society and about its relationships with an entire range of stakeholders to whom it is accountable. These would include all those groups who affect and/or are affected by the organisation and its activities.
19 pages (4750 words) Essay
Current Issues in Management and Financial Accounting
The current dilemma in the business world is that financial accounting becoming more harmonized whereas the management accounting varies with firms and regions. This assignment doesn't aim to show that how this harmonized financial accounting occurs or what are the differences between the two.
12 pages (3000 words) Essay
Management Accounting
The absorption costing method concentrates on both the fixed as well as the variable costs. Hence this method is not very beneficial in the decision making and budgeting processes (Garrison, Noreen and
6 pages (1500 words) Essay
Financial and Management Accounting
The profits before tax have been reported to increase to £2 million. The key performances metrics are as reported by the company are occupancy rate, average daily rate (ADR) and profits per room
12 pages (3000 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation