As you are aware, I am of the opinion that the firm should hire a managerial accountant who will concentrate on the internal accounting system of the entity. As you are aware, the business sector presently is extremely dynamic and operates in a competitive environment where management should be aware of where the organization is heading by regularly evaluating the performance of the entity (Hall, 2012). The internal control system comes in handy because it would substantively assist the management analyze the accounting information and subsequently monitor the real health of the organization. The objectives of the system are substantively designed to achieve the following;
To pragmatically meet the needs of the organization in statutory reporting.
Provide accounting information to the management that is reliable
Provide protection to the organization against possible risks that could occur from manipulation of the accounting data or abuse of the system.
Provide information that is substantively accurate and timely to the management and other interested users
The internal accounting system to reach the objectives articulated has specific characteristics that ease the accounting work. The characteristics include;
The accounting information systems encapsulate transactions that are financial in nature and is substantively expressed in for of money.
The accounting information system caters for consistency of the information provided. The information is subsequently used by the management and other different groups of people interested in the accounting information.
The system is straightforward and well-structured. The perspective encapsulates that the procedures that are involved in accounting data processing are pragmatically articulated by the professional bodies.
The accounting information uses primarily historical data though it may also include prospective data that are presented in the form of budgets and forecasts.
The basis of data for the system is internally generated in the organization, and thus the databases are substantively defined and integrated.
The company by hiring the management accountant whose task will involve the focus on the internal accounting system, the system will have the following importance
Since the system keeps records for the entity, the information is input to the system and subsequently, the system tracks and organizes the accounting information. The accounting information system also provides detailed information on the company together with the financial statement. For example, the accounting clerk enters all the transaction that have taken place in the program, and the transactions are automatically dispatched to the matching accounts (Soudani, 2012). This is important because anytime the information is needed, it can be retrieved in an orderly manner.
Lastly, we should exercise due care to hire a management accountant who has dedication in keeping the highest standards of business ethics in light to the sensitive nature of how we should work. Ethics is concerned with morality and the acts that justify morality. In the modern business world, ethics is exceptionally important. In maintaining a secure corporate status and goodwill in the perspective of the stakeholders, ethics is a necessity in the organization. The management accountant will thus play a substantively pivotal role in upholding the code of ethics. This will be achieved by providing information that is accurate and reliable to the stakeholders of the organization. The management accountant will have to present a true and fair view on the performance of the company subsequently helping the stakeholders to make informed decisions about the enterprise.
Am looking forward to a positive response from you. Thank you.
Hall, J. (2012). Accounting information systems. Cengage Learning.
Soudani, S. N. (2012). The usefulness of an accounting information system for effective organizational performance. International Journal of Economics and Finance, 4(5), 136.
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