Management accounting

Management accounting , as a management instrument of a company , requires consideration of the context in which it operates. Generally, accounting must be designed according to the personnel who are working in the company, considering the culture corresponding to the entity, it must be related to the strategies planned in the area of ​​business management.


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  • 1 Management accounting requirements
  • 2 The new portfolio of the management accountant
  • 3 Accounting information in business decisions
  • 4 The public accountant in business management
  • 5 The most common frauds in accounting
  • 6 See also
  • 7 Source

Management accounting requirements

Managerial accounting must be planned and designed according to the characteristics of the company and logically based on the control structure. This implies determination in each of the fundamental aspects to be able to carry out said business control. A factor that many entrepreneurs and personal managers of different companies ignore with respect to managerial accounting is the fact that, when carrying out this accounting activity, it must present non-financial management indicators, regardless of whether they are quantitative or qualitative, so that these financial indicators can be complemented, thus allowing a much more attractive design in terms of the structure of the company’s management. To achieve this, it is necessary to define the measurement units that will be used to be able to evaluate the initial objectives of the company and all future situations of the company. The managerial accounting applied in the direction, usually develops everything previously explained, based on the identification of all the variables that may be key for the company, regarding all of its activities. Once they have been identified, they will be selected at the global level, together with the monitoring that will be carried out on financial and non-financial indicators, through a scorecard prepared by management accounting. Finally we want to highlight that according to the priority level that is presented in each of these cases,

The new portfolio of the management accountant

The great conceptual changes are generating the need for an adaptive process at the international and inter-American level in each of the countries and in their business organizations in particular. The proposal consists of concentrating to specify what to do today, if the purposes are to find ourselves better positioned tomorrow. All this in light of the new realities. Thus, a new generation of accountants is born, which are handled in the most correct way when faced with administrative decisions, who, beyond verifying and producing key information for the company, must be able to carry it out, analyze it and interpret it reliably for analytical and decision-making purposes. . There are two types of accountants, with their respective model: traditional accounting and managerial accounting. The situation of the management accountant is lacking compared to the situation picture provided; The technical resources to which the managerial accountant traditionally appeals pose anachronism and inadequacies. The most outstanding aspects of the traditional accountant denote the influence of a traditional culture. The type of participation that the traditional accountant normally assumes in the setting of “goals” and “objectives”, as valid referents of the gestation of the business, is reduced to a collection of data, their incorporation into the budgetary control system and a generation of information related to registered deviations. When the CPA is ordered as a soldier to assume this or that responsibility, which is against the ethics of the profession,

We must understand that organizations fight in a world full of subjectivity and very demanding, in which the company morale, the ethical morality of the CPA and the administrative decisions emanating from the same company, test the faith in what is right and what is right. which is better for both of us. The new attributes demanded for the management CPA are: • Staying at the forefront of business organizations through initiatives that emerge from a proactive and anticipatory style, beyond reactive approaches that position it as a new observer of historical events. • Concentrate on the analysis of variables, which is where decision-making is directed. • Definitively incorporate logic in the decision-making process. • Flexibly face new situations that are subject to analysis and interpretation.

Accounting information in business decisions

The decision-making process in the company acquires special importance, since the success and fulfillment of projects are associated with the quality of decisions made by executives. Decision making, then, constitutes one of the main points in the management of companies and information plays a relevant role. The economic-financial information system constitutes one of the main pillars of companies, its mission is to provide adequate information from all levels of it, mainly in support of business decisions.

Accounting is part of the company’s information system and plays a relevant role in its operation. The new portfolio of the management accountant that we propose is for the CPA to take an active participation within organizations and administrative decisions. The accounting information is expressed in reports referring to different aspects.

Among these are the so-called Basic States. The basic statements are generally prepared for external users of the companies. This information, in turn, is called Financial Accounting. Financial accounting is based on the registration of operations in accounting structures expressed in current regulations and the processing of information complies with International Accounting Standards. The preparation of accounting information for decision-making and administrative decisions that the organization then makes when it sees that the information is not favorable, irresponsibly ordering that the states be made up, arranged and even diverting information. When all this is discovered,

The public accountant in business management

Accounting is currently recognized as one of the most important professions that help business management. The CPA is a dedicated person with a high degree of analytical skill, makes intelligent use of accounting information, knows the accounting technique, the limitations they provide gives a correct interpretation to financial statements, has in its hands the basic tool of the business management. By possessing these virtues and qualities, they make him worthy of decision-making management positions in the company, considering that the good behavior of the organization depends, to a large extent, on the appropriate direction assigned to it in the institution.

The CPA in a management position, must draw up programs in which meetings with the company’s senior management are considered. It also requires feedback on what is being done and instructions to improve the development of the company.

The aptitude that the public accountant adopts as a professional in his managerial task, must be aimed at creating the favorable environment for collective work, so that each worker contributes to achieving the common goals of the organization.

The most common frauds in accounting

The essential differences between the accounting crimes of employers and employees consist of the following: While the latter carry out fraudulent accounting manipulations to cover up embezzlements already committed or in preparation, employers direct their artifice in accounting towards the false interpretation of the situation commercial in its entirety. The entrepreneur’s accounting crimes represent, from their origin, the motive pursued. Their objective is always to hide the truth of balance, even when, at times, they cause confusion in loose operations. Accounting crimes are divided into three groups: a) Those committed in the course of the year. b) Those that are made when formulating the inventory with repercussions on the balance sheet. c) The crimes of balance itself.

Whenever any part of the accounting information is: overvalued, altered, deviated, dislocated, etc., the accounting professional is regarded as the person responsible for it, since without the proper consent of the latter, it could not have been committed fraud against society and the state. The CPA is responsible for verifying, analyzing and correcting any anomaly that appears with the financial statements, and if the latter, knowing that something is wrong, signs the document attesting that everything is correct, he is guilty for having failed the principles of ethics and morality by which he swore to defend.


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