Management Accounting 2018

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In Management accounting or managerial accounting, managers use the provisions of accounting information in order to better inform themselves before they decide matters within their organizations, which aids their management and performance of control functions.

According to the Institute of Management Accountants (IMA): "Management accounting is a profession that involves partnering in management decision making, devising planning and performance management systems,and providing expertise in financial reporting and control to assist management in the formulation and implementation of an organization's strategy".

The American Institute of Certified Public Accountants (AICPA) states that management accounting as practice extends to the following three areas:

Strategic management—advancing the role of the management accountant as a strategic partner in the organization.

Performance management—developing the practice of business decision-making and managing the performance of the organization.

Risk management—contributing to frameworks and practices for identifying, measuring, managing and reporting risks to the achievement of the objectives of the organization.

The Institute of Certified Management Accountants (CMA) .states "A management accountant applies his or her professional knowledge and skill in the preparation and presentation of financial and other decision oriented information in such a way as to assist management in the formulation of policies and in the planning and control of the operation of the undertaking". Management accountants therefore are seen as the "value-creators" amongst the accountants.

Management accounting knowledge and experience can therefore be obtained from varied fields and functions within an organization.

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