Date:October 7, 2012
Re:Hiring a managerial accountant for internal accounting
The purpose of hiring a managerial accountant is to focus on the internal accounting system. His or her goal will be to comply with the outside demand of bankers as well as summarize the data that will be used to manage and control the business better. He or she will be responsible for paying close attention to short-term goals on day to day basis and make sure that the long-term goals of the company’s accounting department can prepare or plan for future financial projects (Jane, 2012). The internal and external need of the business is constantly changing and so is the accounting system that is being used (Shanker, n.d.).
There are specific characteristics in the internal accounting system that is required to reach different objectives and ease the workload of accounting employees.
The short and long term objectives consists of producing and writing annual financial reports using the data received or collected in an annual fiscal report.
Usability in the internal accounting system makes it easier to reach short and long term accounting objectives. This also makes the operational task easier to use which includes updating income statements and amounts, tracking the company’s purchase, and using the system to calculate discounts or taxes the company needs throughout the fiscal period (Jane, 2012). In order for the system to work it has to be easy to use in case new employees need to be trained.
The internal accountant will have access to the system and be able to control the cash-flow of the business to prevent and handle any situations of fraud, internal theft, and changes to the budget to match financial plans. He or she having access to the system is important in case managers misuse the system or make bad decisions.
The data is used to make better financial decisions for the company and prepare financial proposals for the company projects...