What is management accounting company? Why is it necessary? Who uses it? Who is reporting? What information should appear in the reports? Such questions are increasingly being asked by managers of small and medium business. From accounting and tax reporting are more or less clear, at least, the information on these kinds of statements are widely represented on the Internet, publishes many magazines, written enough articles and books. Plus all you can get information on courses visit the accountant or thematic workshops. By and large, the accountant makes these reports especially for supervisors. And what about the management statements? This article will try to help you with this.
So what is management accounting? Management reporting – this is one of the most important sources of information on the performance of the enterprise, based set of financial, sales, marketing, production and other indicators. Who uses the management reporting? This information should primarily be of interest to be actively used leaders, founders and owners of the business for which it is needed? The data obtained are essential for the analysis of all activity. And this in turn helps the time to identify the causes of possible deviations from parameters that are defined strategy, as well as to show reserves (financial, material, labor, information, etc.), which until then were not used now. Who is reporting? Since management reporting – a set of different indicators, which are calculated at different levels of information flow in an organization, we can say that the reports are nearly all employees. If you are trying something control, you should be able to measure it In order to effectively manage a business, company, etc., should receive high quality management reporting in real time. There are certain obstacles to obtaining high-quality management reports. Hurdle number 1. Most managers are free to determine what information they want to receive from the staff.