Usually, there is a lot of data for management accounting and manual processing takes a huge amount of time. In this case, software comes to the rescue.

First of all, software makes company’s life easier. It makes all its operations more transparent and understandable. Automated processes enable to set-up company’s processes as a clear single mechanism that brings profit.

It should be noted that management accounting is not about accounting fraud, as many might think. It is about the transparency of accounting processes occurring in company.

This software allows you to be more knowledgeable in all processes, including accounting processes. This process includes several options for activities, including - one of the basic concepts called inventory control. In fact, no company can exist without it.

Term in details

Management accounting is  an "internal” accounting of  an enterprise, including all the business intelligence necessary for management to make decisions and formulate a development strategy. It is also a provider of information for effective management. It plays one of the key roles in management, as it provides the most complete information about the activities and financial condition of the company.

Management accounting data is one of the main sources of economic and non-economic information characterizing the actual state of affairs at the enterprise and covers all business processes of the company (sales, production, logistics, marketing, finance, personnel, etc.).

Properly set-up management accounting allows obtaining information - a basis for planning, resource rationing, analysis and control of enterprise activities. Information obtained from management accounting data is the main tool enables company’s managers effectively manage and coordinate business processes. Thus, management accounting allows not only to carry control over financial processes, but also to build an effective system of personnel motivation to achieve the goals of the company.

Management accounting is the basis of financial planning

The more accurate and relevant the management accounting data is, the more probability of correct decision for the development of the company is done. After all, it is impossible to conduct a qualitative analysis of activities by areas or groups of goods, relying only on the data of standard financial reports.

Management accounting is the basis for competent financial planning of activities, structuring the company's financing funds (loan capital or property asset), search of activities "bottlenecks", search for the optimal level of assets and their turnover.

As a rule, management accounting in one way or another exists at every enterprise. Somewhere, it is a whole system of figures, reports, at the program level or a combination of accounting / trading programs and Excel tables or Excel tables only.

The main idea system is that it can promptly provide accurate, undistorted and complete information sufficient for decisions making. The structure of management reports depends primarily on the enterprise itself, the sphere of activity and management. Reports generated automatically by means of software are much more effective compared to reports generated manually decades ago. Level of the enterprise's operation depends on management accounting level.

Ways to understand the management accounting is incorrect:

• poor presentation of the report, data is difficult to perceive (including the indicators required by the manager are disorganized, it makes comparison inconvenient);
• the report may be too large and detailed, manager finds difficult to find the data required;
• incomplete reports - the reports don’t contain all the necessary information;
• data out-of-dateness - the report is prepared for a long period of time;
• bias of the report data - personnel responsible for the report is interest in false data or individual indicators for it;
• methodological distortions - the data in the management report incorrectly reflect the actual state of affairs of the company, since the accounting system itself is based on false data;
• inefficiency - the costs of reporting should not exceed the effect of its use.

The most important aspect of management accounting in an enterprise is the analytics that managers receive. You can quickly in the online process get an analysis of expenses and income, the profitability of each outlet, an analysis of balances by type of product, shelf life and time of sale, and so on, depending on the field of activity.

Customize and improve your management accounting, it will help you make the right decisions.