Hiring of Another Managerial Accountant to Focus on Internal Accounting

ACCT310-1203A-11: Managerial Accounting

Unit 1- Individual Project

American Intercontinental University

Abstract

This paper will give and explanation of managerial accounting and focusing on internal accounting from a managers point of view. This will be in memo form to a CEO of a company explaining objectives and characteristics of an internal accounting system, including an explanation of the importance of this information to the company. In addition, it will include and explanation of ethics in business and the managerial accountant's role in upholding the code of ethics.

To: CEO

From: Accounting Department Manager

Date: 6/10/2012

Re: Hiring of another managerial accountant to focus on internal accounting.

The basic and one of the most important purposes of managerial accounting is to give useful information to decision makers. By collecting, managing, and reporting information that the decision makers are in need of (Shaw, Wild, 2012).

With the addition of a managerial accountant the managers, employees, and decision makers internal to the organization will have more information readily available to aid them in their decision-making efforts. This will aid managers in planning and making control decisions that could be extremely beneficial to the company.

This information would be available quickly given the fact that we would not have to wait on an audit to be completed, and use this information in making projections and estimations along with historical information.

Another reason to hire another managerial accountant is to keep everything honest and have a second pair of eyes to check information that you could feel better about knowing that two accountants instead of just one looked at the information and "Ok'd" it as being accurate. This would also aid in reducing the chances of fraud.

References

Shaw, K., Wild, J. (2012). Managerial Accounting (3rd ed.). New York: McGraw-Hill/Irwin.