Role of Management Accounting for Company’s Growth
Accounting often referred to as the “language of business” because of his role which has effect almost on every aspect of the company. Accounting has an important role in presenting the information required to evaluate the financial companies to business owners, managers and investors.
In fact the purpose of accounting is to assist them in making a better business decisions by providing them with financial information of the company. Because after all, a benchmark of success of the company in the value of the financial statements that are owned.
We also ought to know that it is impossible to run a business or make a business decision in the absence of accurate financial statements. And this is where the role of the accounting for the business.
Provide financial statements effective for the company
But that accounting can be run well, they should be able to get financial report that is easy to understand. In making the accounting reports, collecting numbers and data may be an easy thing, but changing the numbers and data into an easy to understand information that is a challenge.
But now it is not impossible thanks to the help of business software such as ERP software, SAP Business One, and so forth. But that does not mean that the problem can stop there, after successfully provide a report that is easy to understand, the next issue is how we can analyze, interpret and communicate these reports into a solution that can promote the company. All this proves that the accounting is indeed a very important role in the company.
Field of Accounting
Basically, the accounting has two main fields of management accounting and financial accounting.
- Management accounting
Accounting management hold the key to helping the company’s managers carry out their responsibilities. Later, reports generated by the accounting management will be tailored to the individual needs of each manager. The goal is not lah is to assist managers in making business decisions.
- Financial Accounting
Financial accounting role complements the information to individuals or groups either inside or outside the company to help them assess the financial performance of the company