ROLE OF MANAGEMENT ACCOUNTING ON A SMALL BUSINESS ORGANIZATION

INTRODUCTION
Within the last thirty years, there have been quite some revolutionary changes in the application of accounting techniques to assist all grades of management in achieving efficiency by the presentation of suitable financial information. This revolution in the application of accounting technique has been a difficult task in Nigeria both in public and private sectors of the economy. For example in government sector, to convince administrators of the advantages to be derived from introducing modern techniques of accounting as an acid to decision making. Whereas the need for increased productivity and the emphasis on cost reduction in this sector have necessitated a radical approach to management strategy. 

However, accounting in broad sense, is the language of business. It serves the same purpose for all undertakings both private and public. The difference between development in the public sector and private sector is a mater of scope rather than concept. This is because both are faced with the problem of rational choices among various competing factors of investment of strategies. Essentially, the accounting tool and techniques used are similar. With the above in mind, it is very important to consider the definition promulgated or announced by the chartered institute of management accountants (CIMAS) thus:-“management accounting is the process of identification, measurement, accumulation analysis, preparation, interpretation and accumulation of information used by management to plan, evaluate, and control within an entity to assure appropriate use of and accountability for its resources”. Furthermore, management   accounting comprises the preparation of financial reports for non-management groups like shareholders, creditors and tax-authorized etc. the above definition has two main aspects of the information providing function. 

REVIEW OF LITERATURE
The watchword here is that national industrial planning and strategy is the full recognition of private enterprises and initiative as the responsibility of the government for the welfare of the citizenry. 
However, enumerating the role of management accounting in small business organization, problems facing entrepreneur as well as government role for effective performance have also been  examined. 

I. M Pandey (1990) in his book (titled management accounting: A planning and controlling approach) defined management accounting as that management activity which is concerned with   the planning and controlling of the firm’s financial resource. 
Management accounting is of immense interest to both academicians and practicing managers, would find the crucial decision of the firm are these, which relate to finance. Therefore an understanding of management accounting provides them with skillful decision making. This is because in any organization or industry, be it private of public one, irrespective of whether it is a profit oriented or charitable, there is always the need to keep records of cash receipts and payment comparative analysis of past present performances, record of stock movement and inventory controls, debtors / creditors, bank and so on.
Above, this study is prepared to give a brand perspective of management accounting roles of small – scale organizations, the role of the enhance corporate existence and growth of these set of organization which have been discussed under these head – subheads

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APA

Kings, S. (2018). ROLE OF MANAGEMENT ACCOUNTING ON A SMALL BUSINESS ORGANIZATION. Afribary. Retrieved from https://afribary.com/works/role-of-management-accounting-on-a-small-business-organization-6954

MLA 8th

Kings, Solomon "ROLE OF MANAGEMENT ACCOUNTING ON A SMALL BUSINESS ORGANIZATION" Afribary. Afribary, 29 Jan. 2018, https://afribary.com/works/role-of-management-accounting-on-a-small-business-organization-6954. Accessed 25 Nov. 2024.

MLA7

Kings, Solomon . "ROLE OF MANAGEMENT ACCOUNTING ON A SMALL BUSINESS ORGANIZATION". Afribary, Afribary, 29 Jan. 2018. Web. 25 Nov. 2024. < https://afribary.com/works/role-of-management-accounting-on-a-small-business-organization-6954 >.

Chicago

Kings, Solomon . "ROLE OF MANAGEMENT ACCOUNTING ON A SMALL BUSINESS ORGANIZATION" Afribary (2018). Accessed November 25, 2024. https://afribary.com/works/role-of-management-accounting-on-a-small-business-organization-6954