What is Management Accounting?

The Chartered Institute of Management Accountants (CIMA), defines Management Accounting as:

The process of identification, measurement, accumulation, analysis, preparation, interpretation and communication of information used by management to plan, evaluate and control within an entity and to assure appropriate use of and accountability for its resources.

Simply put it is the provision and use of accounting and other company information to managers within organisations to help them make informed business decisions and be better equipped in their management and control functions.

CIMA is the most strategic focused of the accounting qualifications.

The focus of CIMA members is to add value to the bottom line of the business.

How can a management accountant help my business?

They can teach you how to use the data you collect in your business to make better decisions and improve profitability, cash flow, customer relations and sell more.

They can assist in the design of systems and procedures for your business to lighten the administrative burden.

They can help you make the right choices about the accounting and administrative software your business requires to meet it's legal obligations.

They can design systems that collect valuable data from your existing processes to provide a better understanding of your business's operations and improve profitability and control.  

They can review and suggest improvements to your business systems to ensure they are as efficient as possible in the collection of all business data (not just financial) and as effective as possible in delivering timely reports to enable management to best control the business.

They can provided skills to compliment your current accounting processes to ensure you get the most value from the time and effort invested in your business's administration.