Review how the role of the management accountants is likely to have an impact in supporting management in the chosen company by providing information for creating customer and/or shareholder value.
Management accounting helps to provide key and essential information to guide the management in making decision and management control. Management accounting is considered to be one of the most integral parts of the management process and accountant has been focussed as significant strategic partners in the firm management team (Gazely & Lambert, 2006). Management accounting helps to provide a step of identifying, determining, analysing, communicating and interpreting information in the accomplishment of organizational aims and objectives. The report helps to provide a clear and precise idea about the role and impact of management accountant and their impact on the Fairfax media Australia. Fairfax is a multi platform media company in Australia which consist of several key or importance audiences (Fairfaxmedia.com.au, 2015).
Role of management accountant in creating customer and shareholder value
Financial statement help to produce a clear and precise idea about eh company financial position in the market. Accountant are considered to be one of the most irreplaceable part of organization as they are used to play multiple role which are scorekeeping, attention directing and issue solving roles (Wilmshurst & Frost, 2001). Financial statement include three basic element which are balance sheet, income statement and cash flow statement which help to provide a brief picture of the company key business activities relate to the operation. Two major role that played by the management accountant of the Fairfax Media company are role of bookkeeper and the decision maker which eventually help to provide merit to the shareholder and customer. The management accountant provides a clear and precise idea about the financial statement of the company which eventually help the shareholder to determine the loopholes and issue related with the company. Identification of the loopholes and issue in the management of the company with the help of the analysis fop the financial statement help to take and make effective decision which help to overcome and take leading advantage over their arch rival. Financial statement analysis help the customer to determine the value of the company whether the company is making profit or not and the product and their service which eventually help to determine the growth of the company (Gazely & Lambert, 2006). The book keeping management accountant helps to assure that the financial data of the firm like Fairfax Media is fair and the overall internal control is practised with key policy and procedure (Fairfaxmedia.com.au, 2015). With the help of the proper bookkeeping management help to ensure that the information regarding the financial information of the company and the financial reporting of the company is accurate and reliable.
Management accountant of the company play a vital role in making effective strategic decision regarding the company. The analysis of the company Fairfax media provides a clear and precise idea about the key role of the management accountant (Fairfaxmedia.com.au, 2015). The report helps to provide an in depth analysis of the decision making and role of the management accountant of the company Fairfax media which helps to provide the information for creating customer and shareholder value.
Fairfaxmedia.com.au,. (2015). Corporate Profile - Fairfax Media Limited. Retrieved 18 January 2015, from https://www.fairfaxmedia.com.au/Company/Corporate-Profile/corporate-profile
Gazely, A., & Lambert, M. (2006). Management accounting. London: SAGE Publications.
Parker, L. (2003). The New Management Accountant. Critical Perspectives On Accounting, 14(8), 812. doi:10.1016/s1045-2354(02)00183-1
Wilmshurst, T., & Frost, G. (2001). The role of accounting and the accountant in the environmental management system. Bus. Strat. Env., 10(3), 135-147. doi:10.1002/bse.283