Duties of a Managerial Accountant

Abstract

The duties of a Managerial Accountant vary from simple to complex. The responsibilities include gathering, dispensing, dissecting and disseminating data designed to help management make informed business decisions based on facts. The collected data may be of financial value or very well could have no financial significance at all. These accountants must be thorough, concise, ethical and must follow the rules established by the Institute of Management Accountant (IMA) at all times. The integrity of accountants can make or break a business.

MEMORANDUM

DATE: July 22, 2011

FROM: Accounting Department

TO: Chief, Executive Officer

SUBJECT: New Managerial Accountant

Mr. Smith,

This office is very aware of budget constraints within the company, but believes that the hiring of an additional accountant would be beneficial to this department as well as the entire company.

Beginning 1st Qtr FY11 through 3rd Qtr FY 11, the average employee has worked more than 20 hours of overtime per pay period, which translates to approximately $140,000 a year more than the salary of an additional accountant. The additional overtime hours were acquired due to the construction and future implementation of the proposed new warehouse. The extra duties that are currently assigned to employees in this department can be transferred to the new employee, thus decreasing this department's overtime budget by at least $140,000 a year.

The new employee will oversee the building, staffing and overall operations of the new warehouse. This accountant will be responsible for the planning, executing, reviewing, and reporting of gathered information related to the cost of construction for the new building, such as cost of material, manpower, and length of time needed for each phase of the construction. (Wild & Shaw, 2010)

The new warehouse is expected to be completed in about 24 months and will require consistent managerial accounting assistance to make major decisions to obtain a continuous improvement status. Several areas will need to be addressed, these areas include the Just In Time (JIT) Operating Philosophy, acquiring only what is required for operation, (i.e., staff, products, resources) and ensuring that all departments of the company work together to stock top of the line merchandise for distribution from the warehouse. (AIU Online, 2011)

The credibility of this company has always been above reproach. This company will not only rely on the expertise, capabilities and professional