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CEO Of Company X While It Is Essay

¶ … CEO of Company X While it is understandable that our company does not wish to incur the additional expense of yet another salary onto the payroll, sometimes it is necessary to spend money to save money. Adding a managerial accountant to the accounting department is essential to ensure that Company X remains competitive in the future. In the information age, knowledge is power, and a managerial accountant is able to provide all-important knowledge to the key decision-makers at our company, enabling Company X to remain nimble and efficient when constructing long and short-term strategies.

The objectives and characteristics of an internal accounting system

The types of accounting information that are required for an external audit are different from those used internally. Managerial accounting can provide managers with useful information for planning and control decisions. They can also provide valuable data to other actors with whom the company deals with: "For example,...

The producer shares this information with its supplier companies so that they can help the producer meet its objectives. Thus, although the creator and distributor of the accounting information is an internal decision maker, the recipient of the information is, in this case, an external decision maker" (Williams et al. 2008). Managerial accountants always tailor the presentation of the data to the intended recipient.
Internal accounting ensures that accurate and recent data is available for the company's "long-range plans, research and development results, and capital budget details" as well as for making short-range decisions using general data about payroll and expenses (William et al. 2008). It can also be used to motivate individual employees and departments at the company. "When the accounting system compares the plan or budget to the actual outcomes…

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References

Williams, Jan R. Williams, Susan F. Haka, Mark S. Bettner, Joseph V. Carcello. (2008).

Financial and managerial accounting. McGraw Hill.

Retrieved July 16, 2011 at http://highered.mcgraw-hill.com/sites/0072996501/student_view0/ebook/chapter1/chbody3/management_accounting_information.html
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