Management accounting is often considered the backbone for every organization. It is the provision of financial information and advice to an organization for the ongoing development of the business. It aids management by giving key information at the right time for making a rational decision in order to eliminate business problems. Management accounting “gives accounting information to managers within organizations, to provide them with the basis to make informed business decisions that will allow them to be better equipped in their management and control functions.” Management accounting plays a vital role within any organization. Financial expert Evan Vitale has the proper knowledge about management accounting as well as financial accounting. He makes use of financial information to help an organization make more informed decisions, which in turn help an organization’s overall performance. Thus, Evan Vitale explains management accounting & its impact upon business.
Characteristics of Management Accounting
Helpful in decision making:
Management accounting is helpful to all the managers of the organization in making sound decisions to mitigate any business problems. It provides the relevant information from various sources (like financial and cost accounting) in order to make these various decisions.
Use of special techniques:
For composing the information of management accounting, it is determined by various tools and techniques like budgetary controls, cost accounting, marginal accounting, standard costing etc. So, the data is relevant and more accurate.
Increase in efficiency:
For long-term survival of a business, it is important for an organization to increase efficiency by finding potential inaccuracies and removing them timely. Management accounting enables an organization to take a better look at the flaws in their operations. Evan Vitale, certified public accountant assists you in achieving an efficient organization by preparing proper information and presenting to management in way that is easy to comprehend.
Assists in achieving objectives:
Management accounting assists every manager to achieve the objective of the organization because the report details the strengths and weaknesses of an organization. A SWOT analysis is also performed in order to identify strengths, weaknesses, opportunities and threats to an organization. By performing this analysis, Evan Vitale helps organization achieve both general and specific goals.
Management accountants are more concerned with forward looking items and making decisions that will impact the future of an organization versus historical information. Typically historical information is looked at in order to prepare projections.
Management accountants help takes initiative to achieve long-term success for your business. If you want to manage your business and achieve your overall business objectives, it is helpful to have someone on your side with the relevant experience and expertise. Evan Vitale can help you achieve your business objectives and help to grow your business for long-term success.