Management reports monthly or on request if needing a specific report in a certain area of your business, manage your business monthly with the aid of a P&L, Balance sheet or Debtors report..
The nature and purpose of management accounting is to assist management with planning, controlling business operations and making decisions. Management decisions are likely to be better when they are provided with better quality information. Good information can be broken down and contain the following aspects, accuracy, complete, cost-effective, understandable, relevant, accessible, timely and easy to use.
In order to give management information, we need to start by obtaining data.
Data means facts. Data consists of numbers, letters, raw facts, events and transactions which have not yet been processed into a form suitable for use.
Information is data which has been processed in such a way that is meaningful to the person who receives it (for making decisions).
Managers usually want to know about the costs and profits of individual products and services. In order to obtain this information, details are needed for each cost, revenue, profit and investment centre. Such information is provided by cost accounting and management accounting systems.
Cost accounting is a system for recording data and producing information about costs for the products produced by an organisation and/or the services it provides. It is also used to establish costs for particular activities or responsibility centres.
Cost accounting involves a careful evaluation of the resources used within the enterprise. The techniques employed in cost accounting are designed to provide financial information about the performance of the enterprise and possibly the direction that future operations should take. The term ‘cost accounting’ and ‘management accounting’ are often used to mean the same thing.
Management accounting has cost accounting at its essential foundation.
We prepare annual statutory accounts, budgets and forecasts, product profitability reports and returns to government departments e.g. Sales Tax returns to name a few.