Essay on the importance of accounting

administrative, planning, control, and decision making

decisions.
The administrative role is fundamental and of great importance.
importance; however, in terms of planning and control, the one that is
It requires management accounting, as it is what is going to
help to project into the future and make decisions in the present.
Administrative accounting is defined as "a system of
information for the service of the internal needs of the administration,
oriented towards facilitating the administrative functions of planning and control
as well as decision making.” Among the most common applications
the preparation of budgets, the determination of costs
of production and the evaluation of the efficiency of different areas
organizational operations.
Administrative accounting is done by areas or segments. In addition
managerial accounting is organized in order to produce
information for internal users of the organization, focuses on the
future and generates budgets and cost standards. On the other hand,
Financial accounting produces information for users
externals are based on past information or on events that have already occurred
for the organization, in addition to allowing a global view of the
company results.
Among the main features of accounting
administrative we find that it has the intention to provide
information for carrying out cost activities for products and services.
Regarding management, try to motivate the administrators to
that achieve the company's objectives, as well as generate reports with
relevant information that helps facilitate the planning process,
administrative control and decision making.
The above is undoubtedly fundamental for the development of any
SME. The first years of the company are the most important for
to generate a planning, that is, to know where you want to go
short and long term, learn to control what happens in the company
with what happens in the market to make the decision based on it
appropriate.
Properly carrying out these three fundamental actions
we ensure the life of our company in the early years, while
we promote it for its growth. For entrepreneurs often
they do not consider this topic as they solve things as they go
they present, without understanding that this way of working limits a lot
the growth of it.
Planning is a fundamental activity today, as it
The world we live in is very uncertain, so we must have
any action plan to prevent changes. Every company,
including SMEs and large companies, are developed in a
variable environment where natural disasters, reforms can exist
to tax laws, the changing economy, accelerated growth
of companies, globalization in the face of technological development, etc., so
so that if planning is used as a way to prevent risks and
anticipating changes will make it easier to adapt to any
company, that allows it to continue developing and functioning
adequately without being affected. Planning is an element
fundamental in the administrative area of a company, since, between
other aspects, allows:

•Set objectives, strategies, goals, and policies (philosophy of the

organization).
Widen the focus of attention towards environmental changes.
•Develop actions with flexibility. Planning activities
they indicate what is desired to be achieved in the company and how it is proposed
reach it. There are two types of planning: operational and
strategic. Management accounting supports planning
operational, as it considers the design of actions to achieve the
objectives that are desired in a given period.
Managerial Accounting:
administrative control In all companies it is necessary to have a
adequate internal control, as this helps to avoid risks, it
they protect and care for the assets and interests of organizations,
while the efficiency of it is evaluated concerning the organization
that maintains.
A large part of SMEs do not have adequate internal control.
because in most cases they lack formality,
procedures and policies manuals. Administrative control is
the process by which management ensures that the
resources are obtained and used efficiently and effectively, based on
of the objectives planned by the organization.
 The information provided by management accounting can be
useful in the control process as a means to communicate information
regarding what management wants to be done; as a means to
motivate the company to act in the most appropriate way to achieve
the established objectives, and as a means to evaluate the results; is
to say, to judge how good they are and in this way evaluate the
performance of the managers in each area.
Administrative control is carried out through the reports it generates.
each of the areas, which allows for the detection of any variation for
that, in turn, corrective actions can be taken to achieve
effectiveness and efficiency in the use of resources. Accounting
administrative: decision making
Finally, management accounting, as I mentioned before
previously, it helps to facilitate decision-making. To make a
a good decision requires using the scientific model which, in summary,
is the following:
a) Analysis (to recognize that there is a problem, to define it, to obtain and
analyze data)
Decision (propose different alternatives and select the best one).
c) Implementation (putting into practice the selected alternative and
carry out the necessary monitoring to control the chosen plan.
Managerial accounting helps ensure that the decision is the best.
Every company makes decisions daily, some may be
routine tasks such as hiring employees, but others do not, such as
decision to introduce or eliminate a product line. The quality of the
decisions depend on the type of information available; that is, the better
quality of information, better decision.
Although the information generated by accounting is used by the
management in decision-making, it is important to highlight that not
provides automatic responses to administrative issues; it is
the manager of each company is the one who chooses the best alternative, based on
professional experience and their knowledge, along with the information
generated by management accounting.
Based on the above, we can say that decision-making is
fundamental for our company, especially for SMEs that do not
they have a lot of experience in the market and depending on this
election will affect your performance and even your lifespan.
Therefore, it is essential that decisions are made based on
all the useful information that the tools already provide us
we mentioned, to obtain, in the end, satisfactory results for the
organization.
Conclusion As analyzed, management accounting provides us
provides the necessary tools that, applied in a manner
adequate, they help our SME not only survive the
the first two years that are so difficult, but keep growing,
achieving goals, generating more profits and turning into a company
stable and successful.

It is very important that we fulfill the 3 basic stages of a

managerial accounting: planning, control, and decision making, already
what good planning will do if we do not establish
appropriate controls and if we do not make correct decisions. It is also
very useful that we use all the tools that were pointed out in the
essay for proper planning.
In the budgeting stage, it is very important that
let's project the desired goals, objectives, and utilities in a way
realistic and clear. If we have good planning, it is very likely
that the results obtained in the administrative control are favorable
and let's maintain a good resource management that allows us to have
with reliable and truthful information that will be very useful to us in
moment to make important decisions.
If we take advantage of the benefits that accounting provides us
administrative is to say, yes we interpret the information
Adequately, it is certain that our company will function.
correctly, will be able to grow and develop successfully.
Decision making helps in making good decisions like before
mention, it requires using a scientific model:
Analysis (recognize where the problem exists, defines, obtains, and analyzes)
datos).
b) decision (proposes different alternatives and selects the best one)
c) Implements (the selected alternative and carries out monitoring.
necessary to control the chosen plan.
Decision-making is fundamental for every company, especially
for SMEs that do not have much experience in the market, the
quality depends a lot on the available information.