Before selecting any suitable candidate for the position of accountant, we have to set some basic criteria for selection based on the job responsibilities and the business requirements and then we will do the comparative analysis of three available candidates. For this job, a candidate is needed who is well versed with report writing skills, fiscal ratios which are needed to measure the profitability and productivity of client applications, and handsome experience of managerial accounting. The reason is that S.I.S constantly needs to provide high-quality financial data to financial institutions like banks, investment houses, and the government. For managerial decision-making, financial information should be presented in a tabular and graphic format so that senior management can see the big picture and understand the position of the business readily. For investors, the reports should carry information about growth in sales, Profitability (profit margins), Investments (assets owned), and Business value (tutor2u). Lenders Banks need information that helps them determined whether loans and interest will be paid when due, mainly focused on Cash flows. Credit Suppliers require information about the short-term liquidity of a business. The government agencies are interested in accounting information to levy and collect Corporation Tax. Various regulatory agencies (e.g. the Competition Commission and the Environment Agency) need the information to support decisions about takeovers and grants (tutor2u). The company has to hire an accountant, who possesses comprehensive knowledge of making such different types of reports that satisfy all these stakeholders’ requirements. Another important point is that mere knowledge of all such types of reports is not enough but the hands-on experience is mandatory because any mistake on the part of an accountant can have serious implications for the business and may result in the form of loss of a big business opportunity. So the selection of the right candidate is very crucial to the company. For making this decision, let us analyze the data available about each candidate and try to make a comparison among them.
About Jethro
This person is the youngest and the most educated of all the potential candidates but he has no pertinent experience at all. This post demands a person who is a well-experienced accountant, which he is currently not. Though he has the devotion to staying with a company for a long period company needs a person who fulfills the immediate post for an experienced accountant. Obviously, he will learn over time but at the moment, he is not suitable for this post.
About Fil
Fil is the most experienced person among all, but the problem is that firstly he has limited knowledge and experience of managerial accounting, which is necessary for this position. He is basically adept in financial accounting, which is different from managerial accounting. The basic difference is that the financial accounting reports are mainly prepared for the use of external parties such as shareholders and creditors, whereas managerial accounting reports are prepared for managers inside the organization (Accounting for management). Another problem is that Fil worked in a manufacturing company, but S.I.S deals in services industries, which has different accounting practices. His degree is also 25 years old, which is disadvantage. A lot of things have changed over time. If we look form the point of age, he is the oldest and obviously has least energy to work and lesser flexibility to learn new things.
About Mica
She has the most relevant skills and experience for this post. She knows the managerial accounting practices very well. She is expert in the analysis of financial reports. She worked in small business organizations, most probably services side. Though she is less educated than Jethro, but she still has the potential to learn and may improve her education further. If we compare her with Fil, although she is less experienced yet her experience is more relevant to this post than him.
Mica’s strengths
- She has almost 15 year of relevant experience, especially in small business
- She is well versed with managerial accounting practices particularly ratio analysis
- She is younger than Fil and has the capacity and willingness to learn more.
Mica’s weaknesses
- Her degree is about 15 years old, so she has to learn about new accounting systems, particularly new accounting information system
- She is less educated and older than Jethor, so she needs to improve her education and skill level in order to fulfill her job responsibilities in a better way.
By analyzing the data about all these potential candidates, we found Mica the best one, because she has the skills which are the essential and pre-requirement for this post. She has extensive accounting experience with small business and she is expert in managerial accounting practices including ratio analysis, which is necessary for making decisions at the managerial level. Though she has some outdated degree and less educated, yet she has the strong desire to learn and improve his level of competence. She can easily overcome her deficiencies through her strengths and will be become the best possible choice.
Work Cited
Accounting for management. 2008. Financial Accounting Vs Managerial Accounting or Difference between financial and Managerial Accounting. Web.
tutor2u. april 2009. Users of Account. Web.