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Management Accounting

Management Accounting

Management accounting involves preparation of financial data which is presented to managers in order that they can make informed key business decisions. Management accounting is very different from traditional financial accounting because reports are created for internal stakeholders rather than external stakeholders. A management accounting report will include specific details about the company, including information on available cash, sales revenue, accounts payable and the current status of accounts receivable.

The data collected in management accounting is based on forecasts for the future. They are also highly confidential and only intended for use by managers.

Accountancy is not just about complying with regulations, it is about using the information from the past to make wise business decisions. Many businesses underestimate the value of quality management accounting, but finding the right management accountant to help you complete this function is vital.

By employing an experienced management accountant, your company can ensure your accounts are appropriately prepared and thoroughly checked.. Having the proper management information can make a real difference to business decisions.

Management accounting can be achieved through a number of different processes. The majority of accountants will use your existing in-house software such as Sage or QuickBooks and export the data. This is then converted into clear, concise and structured information.

When it comes to maximizing your profitability, management accounting is absolutely essential. We can help you find a leading accountant who can help you reach informed and strategic decisions. From reducing overheads to transforming underperforming business areas, management accounts can focus your business. Once you have up to date information on performance, cost analysis, Key Performance Indicators and margins you can develop avenues to optimise your profitability.

Management accountants typically produce reports that include;

  • Monthly profit and loss information which is usually supplied with a balance sheet
  • Gross Margin information
  • Statistical data which is easy to understand
  • Budget reporting
  • Year on year comparison figures
  • Drafts of year end accounts
  • Opening balance adjustments for year-end

The goal of the accountant should be to teach you how to use your management accounts to add value to your business. If you are not sure where to start with management accounting contact The Accountancy Network or use our website to find a specialist accountant to help.