Task4 accounting manager Essay Example | Topics and Well Written Essays - 1250 words

Task4 accounting manager - Essay Example This report may help the management to look into the real reasons for such variances and control them. These are all the accounting functions which every organization has to undertake for future accountability. In addition to these, continuous improvement of service has to be embarked upon. The firm has never given any thought towards such performance improvement. Of these functions, only some direction has been derived towards strategic decisions that too because of the expected economic downturn. That means the firm is falling short of decision making in financial management terms. The company has thought upon implementing the strategy of cost leadership. However, on checking through the cost incurrence, there is a variance of 10%. The budgeted costs amounted to 70% of revenue whereas the actual expenses expanded up to 80%. This means that the strategy was not taken up seriously. Once the service terms get standardized, there will be less possibility of variances in the costs. At the same time, the cost leadership strategy can be achieved on a long term basis without any compromise on the service standards. A look into the financial report and the cash flow statement clearly states that the firm has surplus cash in hand. That means it is not making ultimate use of its available funds. If it goes for some financial management planning by acquiring new machinery, the funds would be well utilized for future low cost benefits. To implement any plan in any organization, it needs to be well communicated to all its stakeholders. They need to be explained about the shortfalls in the current management. Slowly, along with accounting management, even financial management processes have to be taken up. Once effective communication has been taken up, quick actions to implement those plans are to be initiated. The stakeholders should not find a fault that the