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 that they play gives them a higher ground in ensuring that the company becomes successful or that it fails.
The role of the management accountant in budgeting
The accountant prepares all the financial books. This means that they should be giving up to date information concerning the financial status of the company. With this in mind, the accountant becomes the best people to handle all the budgets of the company, including paying off debts amongst other budgeting roles. A budget is a tentative document that gives detailed explanation of how money will be spent.
Budgeting can also be referred to as planning. During planning, the accountant has got to look at the cash at hand and cash in bank as well as the assets of the company. The detailed financial status of the company therefore will help the accountant to determine the projects that are viable and those that can be achieved. Budgeting prevents over expenditure and going into projects that cannot be accomplished. This document is normally prepared with the assets available in mind and the kind of profits that this venture will bring to the company. It is the final goal or achievement of a project budgeted for that will determine whether the project is good or bad (Drury, 2006).
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...