Administrative Accounting

Administrative accounting handles and reports internal factors and figures that influence decision making, operational control and managerial planning. Administrative accounting is often performed by an administrative accountant, who may help a company with internal operational accounting duties like payroll, taxes and management of company assets. Administrative accounting focuses on management planning and control to accomplish the company's administrative goals.

Administrative accounting involves a formal methodology for gathering, reporting and evaluating financial data that deals with management planning and control. The reports can help administrators and managers evaluate the day-to-day activities of the operation. Administrative accounting duties are often carried out by an administrative accountant who is an employee of the company. The administrative accountant is often in charge of things like bookkeeping, payroll, management of company assets, tax preparation and planning, inventory control and corporate budgeting.

For example, Tanya is an administrative accountant and XYZ Company. She is in charge of payroll, which means making sure the appropriate taxes, defined contribution plan contributions, and insurance costs are deducted from paychecks and the paychecks are deposited properly into employee accounts. She is also the corporate bookkeeper, keeping track of expenses and revenues. She also is on the budget committee and is in charge of designing the yearly budget for each department and making sure the departments get access to their budgeted funds.