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What is Managerial Accounting?
Managerial accounting combines financial accounting, finance and management with the top notch methods required in propelling businesses to success. It is concerned with giving information to the managers for timely and efficient decision making. Management accounting is a key subject these days. Virtually no organisation can survive without management accounting. It is therefore a key subject in universities and colleges.
Most accounting educations train students for private practice, functioning as external audit and tax issues. Management accounting prepares students to work across an organisation, not only in finance.Apart from strong accounting background, Management accounting imparts strategic business management skills:
Analysis – Reading the numbers. Understanding the language of numbers and employing it in business decision making
Strategy – Interpretation of analysis to build a business strategy that can add value to the business and therefore improving shareholders wealth.
Risk – Application of analytical skills to decipher business processes to recognize, classify and manage inherent risk.
Planning– Employing the accounting methods to prepare good budgets. Budgets are used as the planning tools that indicate the goals to be achieved.
Communication – This is to know the vital information that the operation managers need and the mode of delivering it to them in an understandable manner.
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