You are a trainee certified public accountant with the accounting firm of Hall & lane who offer specialised services to small and medium sized enterprises (SMes). recently, the firm was approached for assistance by a number of managing directors of SMes, who wish to recruit an accountant to their companies but who were unsure of the difference between a financial accountant and a management accountant. As a first step, the partner in charge at Hall & lane has decided to give a short presentation to the managing directors to provide information and clarification about financial accounting and management accounting.
You have been asked by the partner in charge to prepare a briefing note for the presentation.
Draft a briefing note for the partner in charge that:
(a) Suggests reasons why management accounting has become so important in the current business environment.
(b) Outlines the key differences between financial accounting and management accounting.
(c) Describes the role of the management accountant.