You are the manager of an accounting department and would like to hire another
managerial accountant to focus on internal accounting. The chief executive officer (CEO)
is not convinced that a managing accountant position is needed. Prepare a 2-page memo
for the CEO on the following:
Explain the objectives and characteristics of an internal accounting system. Include an
explanation of the importance of this information to the company. Include an explanation
of ethics in business and the managerial accountant's role in upholding the code of
ethics.
MEMO
To: CEO
From: Accounting Manager
Date:
Re: Need for internal managerial accountant
Dear Chief Executive Officer,
This is a memo that will state the reasons why and benefits of hiring another
managerial accountant. As we all know, the significance of a trustworthy
accounting department is essential in any business. Accounting is specifically
the most important department of a business for the simple fact that it deals with
the company’s money statuses. This includes where a business can and can’t go
financially and what it has and has not accomplished in terms of financial
objectives. It is essential that a business have a strong internal accounting
system because it can mean monetary success or failure. An internal accounting
system includes the maintenance of the company’s finances in terms of short as
well as long-term goals, strategy formulation for revenue, operational direction
and control of the company’s finances, and the organization of resources and
assets aligned with the desired budget within the company. All of these duties
will be separated and given specifically to the new internal accounting manager.
It is desired that a position be made specifically for these duties because of the
importance in the company’s finances. One can not get too overwhelmed with
other aspects and/or factors within the company to make mistakes or over or
under budget the company. There should be a main focus so there are no
unanalyzed risks involved. (Wild and Shaw, 2012).
Hiring another managerial accountant specifically for internal accounting will
help to improve internal business as well as external focus. The importance of
this position rests upon the fact that it will be more accurate in cost planning,
managerial accountant to focus on internal accounting. The chief executive officer (CEO)
is not convinced that a managing accountant position is needed. Prepare a 2-page memo
for the CEO on the following:
Explain the objectives and characteristics of an internal accounting system. Include an
explanation of the importance of this information to the company. Include an explanation
of ethics in business and the managerial accountant's role in upholding the code of
ethics.
MEMO
To: CEO
From: Accounting Manager
Date:
Re: Need for internal managerial accountant
Dear Chief Executive Officer,
This is a memo that will state the reasons why and benefits of hiring another
managerial accountant. As we all know, the significance of a trustworthy
accounting department is essential in any business. Accounting is specifically
the most important department of a business for the simple fact that it deals with
the company’s money statuses. This includes where a business can and can’t go
financially and what it has and has not accomplished in terms of financial
objectives. It is essential that a business have a strong internal accounting
system because it can mean monetary success or failure. An internal accounting
system includes the maintenance of the company’s finances in terms of short as
well as long-term goals, strategy formulation for revenue, operational direction
and control of the company’s finances, and the organization of resources and
assets aligned with the desired budget within the company. All of these duties
will be separated and given specifically to the new internal accounting manager.
It is desired that a position be made specifically for these duties because of the
importance in the company’s finances. One can not get too overwhelmed with
other aspects and/or factors within the company to make mistakes or over or
under budget the company. There should be a main focus so there are no
unanalyzed risks involved. (Wild and Shaw, 2012).
Hiring another managerial accountant specifically for internal accounting will
help to improve internal business as well as external focus. The importance of
this position rests upon the fact that it will be more accurate in cost planning,
