Managerial Accounting

Managerial Accounting

The internal accounting systems are basically mainly used for organizing a company as to help it achieve the mission that it set out to achieve. This includes the vision, goals and objectives of the company as a whole (Wild & Shaw, 2010).

Since the internal accounting system is known for the suitability of its system it can best be used to evaluate past and present performances as well as trends. The internal accounting system has a effective and efficiency method that makes it a very essential part of any accounting task.

The internal accounting systems objectives are to ensure that management is responsible for conveying, controlling, maintaining, each department is correctly adhering to the accounting policy within the company. This system also ensures that employees are following the code of ethics and complying responsibly with the internal accounting system.

Any accounting information collected by a company is important since this information is used to make credit and investment decisions. The information that is collected using an internal accounting system is even more beneficial to a company since the information is used to allocate the resources of the company to the various departments.

The information is vital to a company and should be communicated in a timely and accurate manner to the decision makers (Williams et al, 2002).

The world operates on an ethic type basis that each individual should follow and a company is no different. Integrity within a financial report is extremely significant since the business relies on this information to make decisions that can affect the company as a whole.

The accounting code of ethics is a mixture of information and guidelines that are made up of accounting values, internal compositions, and assessments, as well as professional organizations like, IMA, AICPA, and AAA. Since an accountant controls the financial make up of a company then accountants should maintain individual...