It is a common myth that management accounting is used purely by the big end of town. Almost all small to medium sized businesses can benefit from the use of management accounting at some point to make important decisions on the direction they take, and when they take them. But was is management accounting? When is it needed? And, what is involved?
What is management accounting?
Management Accounting differs from regular accounting. The easiest way to compare management accounting to regular accounting is that regular accounting and bookkeeping looks backwards and reports on what has happened in the past. Whereas management accounting looks forwards using reliable data to forecast what will happen with your business into the future.
When is management accounting needed?
Management accounting can help with any future planning a business may require. This generally revolves around a few main areas:
Management accountants are by nature proactive. This means they will look for opportunities and bring things to the business owner’s attention that need addressing. Regular accountants may of course do this too, however properly trained management accountants have the skills to provide thorough statistical analysis of reliable financial data.
Getting a management accountant to assist in analysing your business is a good idea if you have an upcoming decision to make on the future of your business. Even if you don’t, having a management accountant regularly look over your books can help pinpoint decisions that need to be made for ongoing business success.
Management Accounting on the Central Coast
Saige Accounting offers management accounting services on the Central Coast in addition to its regular accounting and bookkeeping services. Our management accountants are skilled to provide you with the insights you need to make well-informed decisions about the future of your business. Talk to us about how our management accountant can assist you.