There are three major functional areas of accounting, the need to consider modern accounting company. Three are financial, cost and management accounting

first area, ie financial accounting, is primarily useful for verifying the results of operations on a regular basis. for example, one year. This will help to determine the future course of action for the long term. In favorable terms, financial accounting treats money as a factor of production.

cost and management accounting are tools to enable managers to make decisions on a daily basis. Cost and management accounting are not useful for their own sake. These two functions assist managers in conducting business with other major factors involved in the operations. Key elements could be demand, supply, competition, availability of raw materials, transport, etc.

Other areas, ie cost accounting, seeks to ascertain the value of direct costs and indirect costs involved in production. From this value, management can make informed decisions to improve production performance. In economic terms, cost accounting is a measure of economic performance. This information gives managers a clear indication of the performance of production resources.

Costa also helps the sales manager of pricing. But cost is a measure of economic performance, it can not be considered totally accurate basis for setting prices. This is because the sales price is an economic decision. It would not be amiss to mention here that the price basically depends on market factors. Prices depend more on demand, supply and competition and lower costs. For example, strong demand combined with a lack of competition would mean that companies could charge higher prices for their products, well above cost.

The third area, namely management accounting is closely interrelated with the cost accounting. Although it has evolved from cost accounting, management accounting has a broader role in management decisions. It measures the economic performance of business as a whole, vis-a-vis the economic environment in which it operates. This functionality accounting seeks to combine financial and cost information in a broader aspect.

Finally, management accounting is spent to assist and advise management in making important business decisions. It makes management aware of the economic consequences and the consequences of their decisions. In economic terms, it involves a close study of money as an economic resource, but at the same time treating it as a measure of economic performance. This allows management to measure it as an economic factor of production, such as return of capital.

It is thus seen that accounting has a special role in three different areas that are equally important. With the advent of computerized accounting, it has become very easy for managers to monitor the accounting information on the tips of her fingers. Financial accounting program to report and various costs and MIS statements to produce almost instantly to press the button. Now, only the laborious part of the financial statements is data entry. Financial managers must ensure that meaningful data is input into the system to produce meaningful information. Just sorting will be done and write errors avoided at all costs, to ensure to provide detailed financial information to management.