Focusing on Internal Accounting
Debby L. Lenahan
ACCT310-1302A-04: Managerial Accounting
interoffice memorandum to: | CEO | from: | debby lenahan | subject: | hiring new managerial accountant | date: | May 5, 2013 | cc: | prof. kristina unutoa | | |
It is imperative that we hire another managerial accountant to focus on our internal accounting. Our internal accounting is very important because this is what sets our standards and policies. In order to maintain good internal accounting, it is important to hire someone with the expertise and experience to analyze, implement, and make necessary adjustments to our current system and policies so that we may have better control within our company.
A new managerial accountant specific to our company will help us make better choices according to our industry. The type of decisions include, choosing the best vendors or suppliers, better managing our expenses, budgeting, making our operations more efficient and making our staff more efficient and cost effective. The new accountant will be able to create reports that analyze our expenses versus our sales, and provide various options to increase our profitability.
One of the most important roles of a managerial accountant is to make sure that all staff within the company is upholding to business ethic principles. Ethics is what determines what is right and what is wrong. Without a managerial accountant, it would be more likely that certain business policies may be broken without our knowledge or even worse, than we may be subject to fraud or theft from one of our own.
By analyzing and keeping track of our petty cash, vendor accounts, and employee credit card use among others, the risk of going against the business code of ethics is minimized. The code of ethics can be easily accessed from the Institute of Management Accountants (IMA) by the managerial accountant. This code will guide the accountant on various