Managerial accounting and company finances in administrative decision making
The new portfolio of the management accountant.
The great conceptual changes are generating the need for an adaptive process at the international and inter-American level in each of the countries and in their business organizations in particular. The proposal consists of concentrating to specify what to do today, if the purposes are to find ourselves better positioned tomorrow. All this in light of the new realities.
Thus, a new generation of accountants is born, which are handled in the most correct way when faced with administrative decisions, who, beyond verifying and producing key information for the company, must be empowered to perform, analyze and interpret them reliably for analytical and decision-making purposes..
We have two types of accountants, with their respective model: traditional accounting and managerial accounting.
The situation of the management accountant is lacking compared to the situation picture provided; the technical resources to which the managerial accountant traditionally appeals pose anachronism and inadequacies.
The most outstanding aspects of the traditional accountant denote the influence of a traditional culture. The type of participation that the traditional accountant normally assumes in the setting of "goals" and "objectives", as valid referents of the gestation of the business, is reduced to a collection of data, their incorporation into the budgetary control system and a generation of information related to registered deviations.
When the CPA is ordered as a soldier to assume this or that responsibility, which is against the ethics of the profession, it highlights his role within the organization and his position.
We must understand that organizations fight in a world full of subjectivity and very demanding, in which the company morale, the morality of the CPA and the administrative decisions emanating from the same company, test the faith in what is right and what it is better for both of us.
The new attributes demanded for the management CPA are:
- Staying at the forefront of business organizations through initiatives that emerge from a proactive and anticipatory style, beyond reactive approaches that position it as a new observer of historical events. Concentrate on the analysis of variables, which is where It directs decision-making. Incorporate logic definitively in the decision-making process. Flexibly face new situations that are subject to analysis and interpretation.
Accounting information in business decisions
The decision-making process in the company acquires special importance, since the success and fulfillment of projects are associated with the quality of decisions made by executives.
Decision making, then, constitutes one of the main points in the management of companies and information plays a relevant role.
The economic-financial information system constitutes one of the main pillars of companies, its mission is to provide adequate information from all levels of it, mainly in support of business decisions.
Accounting is part of the company's information system and plays a relevant role in its operation. The new portfolio of the management accountant that we propose is for the CPA to take an active participation within organizations and administrative decisions.
The accounting information is expressed in reports referring to different aspects.
Among these are the so-called Basic States. The basic statements are generally prepared for external users of companies. This information, in turn, is called Financial Accounting.
Financial accounting is based on the registration of operations in accounting structures expressed in current regulations and the processing of information complies with International Accounting Standards.
The preparation of accounting information for decision-making and administrative decisions that the organization then makes when it sees that the information is not favorable, irresponsibly ordering that the states be made up, arranged and even diverting information.
When all this is discovered, the CPA is wrapped in a web of accusations and counter-accusations, tell me and address with the administrators of the company and the commissions that investigate the facts, staining their ethics and morals.
E l public accountant in business management
Accounting is currently recognized as one of the most important professions that help business management.
The CPA is a dedicated person with a high degree of analytical skill, makes intelligent use of accounting information, knows the accounting technique, the limitations they provide gives a correct interpretation to financial statements, has in its hands the basic tool of the business management.
By possessing these virtues and qualities, they make him deserving of decision-making managerial positions in the company, considering that the good behavior of the organization depends, to a large extent, on the appropriate direction assigned to it in the institution.
The CPA in a management position, must draw up programs in which meetings with the company's senior management are considered. It also requires feedback on what is being done and instructions to improve the development of the company.
The aptitude that the public accountant adopts as a professional in his managerial task must be aimed at creating the favorable environment for collective work, so that each worker contributes to achieving the common goals of the organization.
The most common accounting frauds
The essential differences between the accounting crimes of employers and employees consist of the following: While the latter carry out fraudulent accounting manipulations to cover up embezzlements already committed or in preparation, employers direct their artifice in accounting towards the false interpretation of the situation commercial in its entirety.
The entrepreneur's accounting crimes represent, from their origin, the motive pursued. Their objective is always to hide the truth of balance, even when, at times, they cause confusion in loose operations.
Accounting crimes are divided into three groups:
a) Those that are committed in the course of the exercise.
b) Those made when formulating the inventory with repercussions on the balance sheet.
c) The crimes of balance itself.
All these crimes are committed on the express orders of those who manage the company, and often in conjunction with accounting professionals.
For this reason, the selection of this topic, THE ACCOUNTANT AGAINST MORAL DUTY AND ADMINISTRATIVE DECISIONS, where we have analyzed the performance of the accountant from a professional and ethical point of view; what it does within organizations and its role within the managerial and / or administrative context.
Whenever any part of the accounting information is: overvalued, altered, deviant, dislocated, etc., the accounting professional is regarded as the person responsible for it, since without the proper consent of the latter, it could not have been committed fraud against society and the state.
The CPA is responsible for verifying, analyzing and correcting any anomaly that may arise with the financial statements, and if the latter, knowing that something is wrong, signs the document attesting that all is well, he is guilty for having failed the principles of ethics and morality by which he swore to defend.
In our annexes, we make references to the Enron case, due to the enormous relationship between it and our work, since here the role of the CPA within organizations has been questioned, as well as its morale in the face of the influence of administrative decisions., where the CPA seems to have lost its independence from the administration.
Conclusions
The accountant facing moral duty and administrative decisions has been approached in a more than anything instructive way. Our final objective with the development of this topic was to show some of the weaknesses that our career currently faces, in the ethical, moral and professional order. The most obvious case of the above was that of the Enron.
We briefly develop the foundations of the administration, we define who is the accountant, the laws that regulate their professional behavior, as well as the social morality that they must show in their environment and theirs in relation to professions from other areas or related to theirs.
At the end of the topic we could see that in reality we still have a long way to go to achieve the perfection of the professional of the race, we also note how fragile our career is, due to the commitments that the professional must face, how he still lets himself be managed by the simple fact of not lose your job.
We must try harder every day so that our Career reduces its dependence on administration; We discuss how important the accountant is and how his work, both outside and inside the company, is important, and above all his contributions are vital.
We understand that if it is possible, it is time for the accountant to break his umbilical cord with the administration, and to imply that he is a professional and not an assistant to any other profession. We are at the height, and probably above, many professionals in the financial field.
Our interest is not in any way to confront our Career with other disciplines, but to highlight that due to the extensive professional training achieved in university classrooms and the general management of the entity for which we work, we end up acquiring comprehensive knowledge that allows us to venture with ownership in each and every one of the managerial areas of an institution or company, with greater ownership than professionals in other areas.
recommendations
The recommendations listed below refer to the need for CPA training to successfully carry out business and moral tasks:
- An extension of the Code of Professional Ethics, which investigates the real causes and circumstances in which the accountant is involved and judges the moral of the same. Guide the CPA on the moral dangers of their actions in organizations, and the consequences that this causes.To further strengthen the ties of all accounting committees, unions and groups worldwide.Reflect on the contributions made by accounting workers, to bring them to the level they are at and that we must maintain with our Moral and ethical examples. The accountant must expand his knowledge at the Post-Graduate and Master's level, at the managerial level, so that he becomes a living entity of administrative executives.
Bibliography
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