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Accounting-Forward Looking

Forward Looking

Managerial accounting focuses on measuring performance

to help make decisions for the future

Management Reports

Management accounting data is formed into reports that read less like a financial statement and more like a readable report. These reports summarize the information and draw several real-world examples. Because most managers do not have accounting backgrounds, the data must be presented in a format for the non-accountant. These reports are different from reports prepared for an accounting staff.

Forward-Looking

Managerial accounting is a forward-looking science. The purpose of the process of managerial accounting is to predict certain occurrences and outcomes. This is done by creating pro forma analysis models and statements. This data is analyzed and used to make decisions for the forward movement and planning of the organization.

Cost Controls

Cost management, or cost accounting, is one of the primary functions of managerial, or management, accounting. The cost-management process uses cost accounting to help control the costs associated with operations. These cost-control efforts help a company streamline its processes and methods. This allows a company to eliminate waste and improve production. This, it is hoped, will lead to a better bottom line or increased profits. Variance analysis work is performed to determine whether any variations are present in the budgeted level of man-hours, raw material consumption, time variances or other input costs associated with production.

Budgeting

Budgeting is one of the key focuses of management, or managerial, accounting. Strategic, forward-looking analysis is used for long-term planning. This is all part of the budgeting process. The accounting is used in this situation to budget for future production, expansion or potential slowdowns in the production process. Budgets are created by analyzing past sales and revenue levels as well as growth trends.

Decision Making

Managerial accounting is the process of using all of the accounting data available to make better business decisions--solid decisions based on trends, facts and projects. These decisions are critical to the future of any company. Effective managerial accounting takes much of the risk out of decision making and bases it more on fact. However, there is always financial risk in doing business. Analyzing past trends can create a clear picture of the future. Let us help you with better decision making.

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