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Treasurership vs. Controllership Explained

Management accounting provides relevant information to managers for decision making. It involves identifying, measuring, analyzing, and communicating financial information. The objectives of management accounting information include profit measurement, planning, controlling, and decision making. It has attributes like completeness, accuracy, clarity, and timeliness. Treasurership deals with managing an organization's wealth and finances. It includes sourcing funds and prudently using money. The treasurer's role includes capital provision, investor relations, banking, and insurance. Controllership encompasses all accounting and finance functions like planning, controlling, reporting, and protecting assets. Internal controls comprise an organization's structure, policies, and procedures to safeguard assets, ensure accurate reporting, promote efficiency,

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114 views2 pages

Treasurership vs. Controllership Explained

Management accounting provides relevant information to managers for decision making. It involves identifying, measuring, analyzing, and communicating financial information. The objectives of management accounting information include profit measurement, planning, controlling, and decision making. It has attributes like completeness, accuracy, clarity, and timeliness. Treasurership deals with managing an organization's wealth and finances. It includes sourcing funds and prudently using money. The treasurer's role includes capital provision, investor relations, banking, and insurance. Controllership encompasses all accounting and finance functions like planning, controlling, reporting, and protecting assets. Internal controls comprise an organization's structure, policies, and procedures to safeguard assets, ensure accurate reporting, promote efficiency,

Uploaded by

Nica Jane Macapinig
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

Management accounting environment Treasurership

- Managers need relevant and timely  A function that deals with the management of
information to make reasonable economic wealth of organizations. It includes mastering the
decisions sources of money and exercise of prudence in using
- Information – management accounting - the money of the company
decision Controllership VS Treasurership (Function)
Management Accounting Controllership (P-R-E-G-P-E-T)
the process of identification, measurement, Planning & Controlling
accumulation, analysis, preparation, interpretation Reporting
and communication of information used by Evaluation
management to plan, evaluate and control within an Government relations & reporting
organization and to assure of and accountability for Protection of Assets
its resources Economic Appraisal
Tax Administration
Management accountant
- Vp for finance Treasurership(P-I-S-I-B-I-C)
- CFO Provision of Capital
- Accounting manager Investor relations
- Budget Director Short-term borrowings
- CIO Investments
- Financial system admin Banking & Custodianship
- Controller Insurance
- Comptroller Credit & Collection
Objective of Management Accounting Information
- Profit Measurement Internal Controls
- Guide for Planning  Comprise the plan of an organization and all its
- Standards for controlling coordinate methods and measures in order to
- Basis for decision making protect the assets, check the accuracy and
reliability of accounting data, promote operational
Attributes of Management Accounting Information efficiency and encourage adherence to prescribed
- Completeness policies.
- Accuracy Classification of internal controls
- Clarity - Administrative  Include the design of
- Confidence organization, strategies, corporate values,
- Communication work ethics, policies on human resources,
- Volume and all other policies that are not directly
- Timing related to accounting systems.
- Channel of Communication - Accounting  Include those forms, records,
- Cost systems and reports that relate to the
- May be quantitative or qualitative processing of transactions and are basically
- Free from bias concerned with the safeguarding of assets
- Forward looking
and maintaining a system that produces a
- Inherent attributes of an accounting
reliable and accurate accounting
process
information.
Management Process
- Set mission and vision
- Develop strategy Internal Controls
- Design organizational structure
- Gather reports Components Purpose
- Formulate and execute systems
- Set standards
- Performance evaluation and reward Structure Protection of Asset;
- Learning points (Plan of Accuracy & reliability of
Organization) accounting data
Controllership VS Treasurership
Controllership Policies Operational efficiency
 A function that has a responsibility for all (Methods and Adherence to policies
accounting and finance related activities within a Measures)
company. It deals with records, systems,
processed and internal controls.
Internal Controls

Components Purpose Classification

Structure Protection Accounting


(Plan of of Asset; Controls
Organization)
Accuracy &
reliability of
accounting
data

Policies Operational Administrative


(Methods and efficiency Controls
Measures)
Adherence
to policies

11 Cardinal Principles Internal Controls


General Organization Controls
1. Responsibilities must be fixed
2. Functional responsibilities must be
segregated
3. No one person should be in complete
charge of business transaction
4. Use all available proof of accuracy, if
possible
Personnel Controls
5. Employees should be carefully selected &
trained

6. Employees should be rotated

7. Employees should be bonded, especially


those in a position of trust

Management Controls

8. Operating instruction should be in writing

9. Controlling accounts should be used

10. The advantages of double-entry accounting


should not be overemphasized

11. Use of mechanical and/or electronic


equipment, if feasible

“Time management is life management”


THANK YOU!

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