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Accounting management oversees the monetary aspects of a company, from planning to implementation. It is typically found in large organizations, where the department monitors expenses and manages money flow through the organization.
Accounting management is an applied field that deals with money entering and leaving a system. In many ways, it is the applied form of economics, although the vast majority of accounting management applies to a single firm or system rather than an entire economy. This form of management has two main functions: it oversees the planning of the project from an economic point of view and takes care of the banking and accounting aspects of the company.
The most likely place where accounting management is needed is within a large organization such as a business or government. In these larger organizations, the accounts are usually managed by an entire department that does nothing but work through the monetary information. Smaller facilities typically have an accounting system, but do not require the overarching systems commonly found in accounting management. These smaller accounting systems typically have a small staff or may even outsource their accounting to a local business.
The first major task of accounting management is the supervision of the money used by the organization. As a result, the accounting department is typically involved in nearly all aspects of the organization’s relationships. Accountants assist in every phase of a project from planning to implementation. The accounting system will often determine the monetary viability of a project before it is even started, essentially deciding whether the organization can afford the money it will have to spend.
This department’s work is often more behind the scenes than others. The planning and analysis phases of a new project are often performed by accounting before being handed over to the rest of the company. If the accountants determine that the project isn’t worth the expense, it is often shut down before the rest of them know about it.
In approved projects, accounting management is used to track expenses. This means that the department constantly monitors the actions of other departments in order to keep costs down. This, plus the initial approval stages, gives this department great power in a standard organization. As a result, most large-scale accounting departments conduct rigorous internal audits to keep the department on track.
The second duty of an accounting management department is to manage the money as it flows through the organization. Handles business bank accounts, payroll, billing and receiving. For the most part, if the process involves the movement of money, within or outside the company, accountants are usually part of it.
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