Accounting and finance Essay Example | Topics and Well Written Essays - 500 words - 1

Accounting and finance - Essay Example f the organization which will help them in making better and informed decisions; increase their job effectiveness and improve organizational performance (Needles et al., 2010). Management accountants play a role in all stages of a decision making process which involves planning, performing, evaluating and communicating. Their expertise in financial reporting will allow them assist in decision making process. Any business decision has to be based on sound financial knowledge and this is where management accountants are vital. The various areas of business that management accountants play a role are: designing of business strategy, resource usage, internal control, corporate governance, safeguard tangible/intangible assets, decision making, planning and controlling activities, value enhancement, performance improvement, etc (Collier et al., 2006). The role of the management accountants is limited to only serve the internal decision makes of an organization. The focus of management accountants is forward thinking. Management accountants use the financial information and design models that predict the future financial projections. Financial accountants also play an equally important role in effective business management. The role of financial accountants is to assist all stakeholders of an organization by preparing financial statements which summarises and indicates the financial health of the organization. Financial accountants are required to prepare financial statements that assist not only internal but also external decision makers such as shareholders, owners, lenders, banks, suppliers, etc (Loughran, 2011). Unlike management accountants, financial accountants are not seen as business consultants or advisors. The role of the financial accountants is to make the financial information of an organization available in a user friendly way to the stakeholders. Financial accountants are required to look analyse the past performance of an organization and prepare