Duty of the management accountant

It is the duty of the management accountant to keep all levels of management informed of their real position. He has, therefore, varied functions to perform. His important functions can be summarized as follows:

Planning: He has to establish, coordinate and administer as an integral part of management, an adequate plan for the control of the operations. Such a plan would include profit planning, programmes of capital investment and financing, sales forecasts, expenses budgets and cost standards.

Controlling: He has to compare actual performance with operating plans and standards and to report and interpret the results of operations to all levels of management and the owners of the business. This id done through the compilation of appropriate accounting and statistical records and reports.

Coordinating: He consults all segments of management responsible for policy or action. Such consultation might concern any phase of the operation of the business having to do with attainment of objectives and the effectiveness of the organizational structures and policies.

Other functions: He administers tax policies and procedures. He supervises and coordinated the preparation of reports to governmental agencies. He ensures fiscal protection for the assets of the business through adequate internal control and proper insurance coverage. He carries out continuous appraisal economic and social forces and the government influences, and interprets their effect on the business. It should be noted that the functions of a Management Accountant are more of those of a 'staff official'. He, in addition to processing historical  data, supplies a good deal of information concerning the future operations in line with the management's needs. Besides serving top management with information concerning the company as a whole, he supplies detailed information to the line officers regarding alternative plans and their profitability, which help them in decision-making. As a matter of fact the Management Accountant should not bother himself regarding the decision taken by the line officials after tendering advice

unless he has reasonable grounds to believe that such a decision is going to affect the interests of corporation adversely. In such an event also he should report it to the concerned level of management with tact, firmness combined with politeness.