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Management, Control and Accountability for Financial Resources

In: Business and Management

Submitted By nayhakamran
Words 3425
Pages 14
Management, Control & Accountability for Financial Resources
INTRODUCTION
The purpose of this paper is to identify the information needs of the internal and external stakeholders in a manufacturing concern and how they can be met. All stakeholders of a firm require different types of information to help them in the decision making process. The top management which comprises of the Chief executive officer and the board of director require information pertaining to the finances of the firm, the key issues of the firm and the performance of the firm to formulate the strategic policies and strategies of the firm. The middle management consisting of the marketing manager, production manager etc will require information to effectively fulfill their job responsibilities and take actions accordingly. The external stakeholders such as the shareholders have invested their hard earned money in the business and would want to be informed about how well the firm is doing and the return that they will be getting for the money that they have invested. The shareholders are usually interested in the financial reports of the firm to see how profitable and liquid the firm is and will it be able to provide dividends to them.
Financial reporting is necessary for management, control and accountability purposes. It helps to assess whether the resources of the firm are being utilized in the most efficient manner and the firm is meeting its objective of generating the maximum profit. Information reporting is also important for audit purpose and to present to the government or other regulatory agencies to ensure that the firm is following the general accounting standards set.
Hence information plays a major role in the decision making process and should be timely, accurate and complete to ensure all issues and key performance indicators are accounted for and the right decision can be...

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