What is Internal Accounting?
General Accounting is strictly for Financial and External analysis – and was never meant to be used for managerial cost accounting. During the last 15 years many articles have been written about the need to separate External from Internal Accounting. My research project has studied this necessity – and I have developed an Internal accounting structure, totally integrated yet separate from General Accounting. A new Chart of Accounts has been structured specifically for Internal Accounting use. This Internal Chart of accounts – starts with the accounts showing the Cost Elements for the period. These Cost elements should be identified as Direct and Indirect Costs. The Indirect cost will be allocated to the different Departments in our company. We recommend strongly, to no longer use the term called Overhead. This term is absolutely inadequate. With accounts prepared for all departments – we have created a clear picture of a Responsibility Accounting system. For management this Responsibil
Related Questions
- In the staff’s view, what aspects of a registrant’s loan loss allowance internal accounting control systems and processes would appropriately be addressed in its written policies and procedures?
- Is FSCU available to answer questions relative to CALSTARS reports when auditors have sensitive questions they do not want to discuss with internal accounting staff?
- If a business is interested in out sourcing its internal financial accounting functions does Bennett, Hutt & Co. provide such a service?
