Managerial accounting Essay Example | Topics and Well Written Essays - 2250 words

Managerial accounting - Essay Example The essay will also look at the role played by management accountants today and assess whether this is relevant to modern day business requirements. Management accounting is concerned with identification, measurement, analysis and communication of information necessary to help an organization achieve its objectives. Management accountants are usually senior managers in a company and have the responsibility of supervising junior accounting staff who deal with basic accounting for the firm. Unlike financial accountants, managerial accountants prepare and analyze data for purposes of deacon making within the organization (De Loo, Verstegen, and Swagerman, 2011). Financial accountants on the other hand prepare data and financial statement for third parties such as shareholders. Changes in the traditional role of management accountants has been necessitated by developments within the business environment such as changes in consumer preferences, technological changes, socio-economic changes and volatile political environment. In this scenario, businesses and organizations have had to reorganize themselves in order to responds to changes in the external environment (Scapens and Jazayeri, 2003). This reorganization involves examining the significance of various departments and employees in relation to modern day business requirements. Management accounts have faced strong challenges over the years over whether they deserve to be part of contemporary business structures. Such pressures were significant in driving changes within the managerial accountants’ role that have made the position relevant today. This paper will start by examining the traditional roles that management accountants play in organizations. The essay will further look at the changes that have taken place in modern day organization and the difficulties that traditional accountants encounter in executing their traditional roles. The