Responsibility in accounting

Accounting profession blends excellent academic qualifications, working experience and exceptional moral responsibility. It is therefore imperative that managerial accounting information like budgeting is undertaken with precision, honesty, and utmost good faith. The concept of responsible stewardship is relevant in managerial accounting as it emphasizes honesty and focus on the interest of all stakeholders (Catlin-Legutko  & Klingler,2012). Accountants deal with the property of other people and therefore sit on a very sensitive assignment. Dealing with money holds prospects of success or risk of failure and either outcome is dependent on the accountant’s sincerity with decision making. Stewardship has to do with efficient allocation of financial resources to yield desirable results that serve the goal of the customers, companies and other stakeholders.

Consider people who are in life insurance, pension scheme, education policy, and others. These different persons trust the decision of managerial accountants to make the best out of their investment. Responsible stewardship therefore require that the financial managers divulge important information on potential risk, declare expected gains from assets, and reveal any information that has bearing on the clients’ finances (Tarantino, 2013). Drawing budgets must take into account the concept of allocative efficiency and disregard subjective opinions that compromise the financial expectation of the investors and all stakeholders.

The value of integrity is fundamental for a managerial accountant. All investment decisions must be done within the laws and ethics. The role of transparency is to build trust which is critical in business relationships tied on finances (Catlin-Legutko  & Klingler,2012). The planning and budgeting require astute minds that capture short term and long term goals to secure the interest of clients. Bankers and other financial managers must take up the invest responsibility with zeal as if it were their own. The power of stewardship and integrity is invaluable in consistent, reliable and sustainable financial management.

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