In case of significant differences between budgeted and actual results, a manager will usually investigate to determine what is going wrong and possibly, which subordinates or units might need help. Similarly management accountant can provide sales report, production report to the respective manager for taking suitable action about the sales and production position. (ii) Specifying the objective or goal to be achieved (e.g. This is done through preparation and distribution of accounting reports, which include besides the usual income statement and the balance sheet, additional information in the form of accounting ratios, graphs, diagrams, funds flow statements etc. A budget is the financial planning showing how resources are to be acquired and used over a specified time interval. So preparation of income statement is treated as one of the important functions of Accounting. Management accounting is closely interwoven in planning both because it provides information for decision-making and because the entire budgeting process is developed around accounting-related reports. Functions of accounting are related to those statements which provide information of economic entity mainly measurable regarding money that will be used in deciding for the plan of action from various alternatives. Therefore, from this view and general activities of Accounting; It is clear that the functions of Accounting are, Carter in his Advanced Accounts has also divided the functions of Accounting into two parts –. Preparation of balance sheet is one of the functions of the special importance of Accounting. This can be ascertained through ratio- analysis. The four main ones are bookkeeping, summarizing accounts, reconciling bank statements and giving financial status of an organization. Functions of accounting are related to those statements which provide information of economic entity mainly measurable regarding money that will be used in deciding for the plan of action from various alternatives. Yorston, Smyth, and Brown have divided functions of Accounting in two groups; The management is to make various decisions for the smooth running of the business. Interested parties related to the business organization such as owners, employees, suppliers, investors, researchers, government, etc. Accounting provides reports of past financial activities that are made suitable for decision-making through analysis. The type of organizational structure differs from one business enterprise to another. The primary function of Accounting is to record the transactions in the journal as soon as they occur. Comparative analysis for decision making. Management accounting plays a vital role in these managerial functions performed by managers. To reflect the claims against and the interests in those entities. For this, Accounting provides the necessary information. (2) Organising (3) Controlling, and (4) Decision-making. Control is the process of monitoring, measuring, evaluating and correcting actual results to ensure that a business enterprise’s goals and plans are achieved. Planning is formulating short term and long-term plans and actions to achieve a particular end. Control is accom­plished with the use of feedback. If the transactions are journalized, it becomes easier to transfer them in ledger accounts. The management accountant develops data that help managers identify the more profitable products. A manager cannot plan without making decisions and has to choose among competing objectives and methods to carry out the chosen objectives. According to this study, the function of accounting is: The function and purposes of accounting are accomplished at two levels. For discharging his responsibilities, he keeps accurate accounts of all financial transactions of his business, and these are regarded as stewardship functions of accounting. Content Guidelines 2. Decision-making is a process of choosing among competing alterna­tives. This role asks, of the several alternatives available, which is the best? The use of performance and control reports follows the principle of management by exception. One of the primary functions of Accounting is to provide them with information regularly through various reports. These are listed below; Control of financial policy and formation of planning. The management process implies the four basic functions of: (1) Planning. The main function of Accounting is not only to record the transactions in books of accounts but also to determine the net results of a business for a particular period at the end of that period.