Management Accounting
Introduction
Management accounting is concerned with using financial information to assist in the internal management of a practice. It is different from financial accounting which provides financial reports to various segments of the public and to shareholders. This checklist is intended to provide managers with an overview of the scope of the work done by management accountants and the contribution it can make to the effective management and performance improvement of a business.
What is Management Accounting?
Management accounting is a practice that provides the management of a business with the information they need to make decisions. It encompasses performance management, strategic management and risk management.
Management Accounting Checklist
Understand the scope of management accounting
Management accounting seeks to address these three business areas:
performance management strategic management risk management.
There is of course, considerable overlap between these three areas. Although management accounting as a discipline and practice is distinct from financial accounting, it may use information produced in a business's financial accounts and a certain level of integration is required.
Future Practice Owner.
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