User:Silcharassam

1.       Financial Reporting

o   Management accountants work at the beginning of the accounting cycle, recording the financial transactions of a company as they occur. This business role ensures that companies have a good understanding of their financial health, giving executive management the ability to make informed decisions. Financial reporting also allows external stakeholders to review the company based on financial information and deciding whether to invest money into the company. Financial reporting leads to other business roles for management accountants, including budgeting, forecasting and internal controls.

Budgets

o   Companies use budgets to ensure that they do not spend more money on business operations than is necessary to generate profits. Management accountants will prepare budgets for each department and then add them together to create one companywide budget. The accounting department is responsible for managing the budget and tracking expenses that are higher than the budgeted expense. Most budgets are created on an annual basis; capital improvements are also included in the budgeting process so businesses can plan on improving current facilities.