Distinctive characteristics of management accounting

Distinctive characteristics of management accounting

• Management accounting is directed to serve internal parties, as it focuses on preparing reports for internal users (management)
• The essence of management accounting is measurement and delivery, Measurement includes the values of future values in addition to the actual values and is a monetary and non-monetary measurement, As for the delivery of information, it is done to the administration within the facility.
• The goal of management accounting is to serve the administration in the exercise of its various functions of planning, decision-making, control and performance evaluation through

– Providing managers in institutions and companies with financial and accounting evaluation tools for administrative performance in total and detail.

– Carrying out a deep analysis of the accounting data available using a practical and accurate approach based on the tools and techniques of accounting and management science collectively, in addition to the use of some other sciences such as economics, statistics and operations research.

– Forming a future outlook towards the financial achievement and profit performance of the institution and issuing appropriate recommendations to make the administrative operations systems as a whole consistent with the requirements of achieving the future integrated plan of work

– Conducting comprehensive studies of the potential financial and administrative risks on the continuity and vitality of the work and proposing ways of treatment to avoid any possible financial shocks for work at the present time or in the future based on the comprehensive favoritism and administrative analysis to complete the work.

Source: Arab Accountant Magazine