Management accounting determines the success or failure of an organization. Moreover, it is very essential in the appropriate decision making. The main aim of a management accounting report is to provide logical information about the business and the functioning of it in all the levels of an organization. “The process of identifying, measuring, analyzing, interpreting, and communicating information for the pursuit of an organization's goals.” (Managerial accounting. 2007).Due to the changes that have been taking place in the accounting field, it is necessary to take appropriate measures to improve the managerial accounting techniques and procedures. Obtaining adequate information required for the organization is the main driving force for change. In order to gain the organizational goals, it is necessary to implement the relevant managerial accounting policies effectively. Increased competition requires adequate changes in the management techniques. Earlier, management accounting was mainly concerned with the determination of cost, control of finance, and the like. It was also used in order to minimize the wastage of resources. In addition to this, the management accountant is also responsible for the preparation of accounting statements effectively....
"Financial accounting is something performed to agreed standards and principles (GAAP) designed to fairly and accurately report the true worth of a business to its owners and its true profits to the tax collector. Management accounting, on the other hand, is a mechanism for using a financial metric (dollars) as a normalizing mechanism for making decision about (often vastly) different choices and alternatives." (Anderson 2005).
In order to mitigate the existing difficulties associated with the concept of managerial accounting and its principles and policies, it is necessary to undertake effective implementation strategy and the reinvention of management accountants. The organizational customs and its environmental factors are also effecting this reinvention to certain extend. Management accounting principles and its applications are fundamental for the preparation of financial statements and report to the entity so as to take appropriate future decisions. Management accounting highly concentrates on taking the most relevant decision required within the organization, and it is necessary to obtain the proper information about the entity to facilitate decision making, and such information should be more accurate in nature.
As Professor Lee D Parker suggests, reinventing the management accountant is a fundamental concept to improve the efficiency of the subject of management accounting. For this, more talented and eligible personalities are required for the organization for controlling the area of accounts and finance. As a result of this, it is very clear from the fact that the management accountant, their role, duties, and responsibilities are widely increasing day by day, due to the technological innovations made by the