Discuss the Role of the Financial Accounting and Managerial Accounting Functions in Organizations

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"Financial accounting produces information for external parties such as stockholders, suppliers, banks, and government regulatory agencies" (Horngren, Sundem, & Stratton, 2005, p. 5). "Financial accountants prepare financial statements based on general ledgers and participate in important financial decisions involving mergers & acquisitions, benefits/ERISA planning and long-term financial projections"(Accounting: Job Options, 2000). These reports are used by owners of a business, or by people who have loaned company money. Stockholders and banks also benefit from financial reports. A FTSE 100 international insurer is seeking to recruit a Senior Financial Accountant into their Global Head office. "This person will work with investor relations and financial planning & Analysis teams to produce high quality reports to senior management, shareholders and analysts. You must have IFRS and UK GAAP to expect to become a key member of the group financial reporting team. You need to be a qualified accountant, ACA, ACCA, CIMA…" (Senior Financial Accountant, 2007). "Management accounting produces information for managers within and organization. It is the process of identifying, measuring, accumulating, analyzing, preparing, interpreting, and communicating information that helps managers fulfill organization objectives" (Horngren, Sundem, & Stratton, 2005, p. 5). Accountants prepare budgets to achieve goals in financial terms by identifying, measuring, accumulating, analyzing, interpreting, and communicating information (Horngren, Sundem, & Stratton, 2005, p.5). "Management accountants work in companies and participate in decisions about capital budgeting and line of business analysis. Major functions include cost analysis of new contracts and participation in efforts to control expenses efficiently" (Accounting: Job Options, 2000). Hudson Shribman is currently recruiting a Senior Management Accountant for a leading UK retail bank. The manager accountant's...
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