financial planning
Table of Contents
Title Page 1
Table of Contents 2
Financial versus Managerial Accounting 3
Problems in Implementing an Accounting Information System 3
Developing an Accounting Information System 4
Conclusion 5
Bibliography 7
FINANCIAL VERSUS MANAGERIAL ACCOUNTING
Financial accounting is focused on historical data. It involves the process of recording, summarizing and reporting financial information from a specified period of time in order to determine the financial position and performance of an organization. Financial accounting information is used by investors, creditors, and shareholders. In contrast, management accounting is forward looking. Management accounting reports assist management in the decision-making process by providing information used to plan, evaluate and control company resources. The case study of the care of soldiers in the British Army during the Crimean war is an example of the importance of managerial accounting and the possible implications of mismanagement.
FINANCIAL ACCOUNTING
MANAGEMENT ACCOUNTING
Assists with investment decisions
Assists management to make decisions
Is governed by GAAP principles (USA)
No specific format
Used externally by investors, customers, creditors
Used internally by management
Based on historical data
Based on the present and is forward looking
Well defined reporting period
Reported as needed
PROBLEMS IN IMPLEMENTING AN ACCOUNTING INFORMATION SYSTEM
Managing a health care system is no small feat. However, when the organization is littered with systemic problems, the job becomes increasing difficult. This was the case of the British Army health care system. The system, “was calamity unparalleled in the history of calamity” according to Miss Nightingale who served as a British nurse during the Crimean War. To begin, three separate departments were responsible for looking after the health of the British Army and the
Title Page 1
Table of Contents 2
Financial versus Managerial Accounting 3
Problems in Implementing an Accounting Information System 3
Developing an Accounting Information System 4
Conclusion 5
Bibliography 7
FINANCIAL VERSUS MANAGERIAL ACCOUNTING
Financial accounting is focused on historical data. It involves the process of recording, summarizing and reporting financial information from a specified period of time in order to determine the financial position and performance of an organization. Financial accounting information is used by investors, creditors, and shareholders. In contrast, management accounting is forward looking. Management accounting reports assist management in the decision-making process by providing information used to plan, evaluate and control company resources. The case study of the care of soldiers in the British Army during the Crimean war is an example of the importance of managerial accounting and the possible implications of mismanagement.
FINANCIAL ACCOUNTING
MANAGEMENT ACCOUNTING
Assists with investment decisions
Assists management to make decisions
Is governed by GAAP principles (USA)
No specific format
Used externally by investors, customers, creditors
Used internally by management
Based on historical data
Based on the present and is forward looking
Well defined reporting period
Reported as needed
PROBLEMS IN IMPLEMENTING AN ACCOUNTING INFORMATION SYSTEM
Managing a health care system is no small feat. However, when the organization is littered with systemic problems, the job becomes increasing difficult. This was the case of the British Army health care system. The system, “was calamity unparalleled in the history of calamity” according to Miss Nightingale who served as a British nurse during the Crimean War. To begin, three separate departments were responsible for looking after the health of the British Army and the
Bibliography: Anthony, R., Govindarajan, V. Management Control Systems. 12th Edition. McGraw Hill. Boston (2007). Bradford, E. (1995). “Internal Control and Cash Management Manual and Questionnaires”. [online]. Available from: http://www.health.gov.ua/zpr/101-200/0152/0152e.pdf. [Accessed: 2013DEC08]. Fontinelle, A. (2011). Introduction to Accounting Information Systems. [online]. Available from: http://www.investopedia.com/articles/professionaleducation/11/accounting-information-systems.asp. [Accessed: 2013DEC07]. Gadh V.M., Krishnan, R., and Peters, J. M (1993), “Modeling Internal Controls and Their Evaluation”, Auditing: A Journal of Practice and Theory, Vol 12 Supplement. (p.113-129). Houghton C. W. (1993), “Discussion of Modeling Internal Controls and Their Evaluation”, Auditing: A Journal of Practice and Theory. Vol 12. (p. 135-136). Kornkaew, A. (2012). Management Information System Implementation Challenges, Success Key Issues, Effects and Consequences. [online]. Available from: http://www.diva-portal.org/smash/get/diva2:545644/FULLTEXT01.pdf. [Accessed: 2013DEC03]. O 'Leary, C., Iselin, E., & Sharma, D. (2006), “The Relative Effects of Elements of Internal Control on Auditors ' Evaluations of Internal Control”, Pacific Accounting Review, Palmerston North: Dec 2006. Vol. 18, Iss. 2; pg. 69, 28 pgs. Otley, D., Berry,A. (1980). “Control, Organization and Accounting”, Accounting, Organizations and Society. 5 (2), (p.231-244).