Whiz consulting is a well-known firm that offers outsourced accounting and bookkeeping services to UK-based businesses. Their experts are well equipped with the latest accounting and bookkeeping software to tackle any accounting or bookkeeping issue. In addition to this, they have clients worldwide, including countries like the USA, Australia, etc. In a recent interview, the senior officials of Whiz Consulting stated the importance of management accounting. “Management accounting is an insight to highlight the strengths, weakness, opportunities, and threats of an organisation,” says the experts at Whiz Consulting. 

Management accounting is all about identifying, analysing, evaluating, and communicating important financial information to the managers for decision making. It enables the managers to make the best strategic decisions for the business. The purpose of management accounting is different from financial accounting. Financial accounting generates financial statements, whereas management accounting helps managers make well-informed decisions. The former is external, while the latter is internal. 

Management accounting includes several aspects of accounting, and cost accounting is a large subset of management accounting. “The management accounting process is entirely focused on internal reporting to facilitate decision making,” says the senior executive of Whiz Consulting. The senior executive further adds that a managerial accountant works to analyse various events and translate them into useful information so that the company’s management can use it for decision-making. Meanwhile, management accounting can be of various types, such as: 
https://www.whizconsulting.net/uk/management-accounting-service/

Product costing and valuation 
Cash flow analysis 
Inventory turnover analysis 
Constraint analysis 
Financial leverage metrics 
Accounts receivable management 
Budgeting, Trend analysis, and Forecasting 

The main agenda of management accounting is to assist the management team in improving the quality of their decisions. As mentioned above, it facilitates the process of internal analysis. The expert team at Whiz Consulting shared some more advantages of management accounting which include: 

Forecasting- It helps in forecasting future trends in business. The questions like, should a company invest in any other company? Should it diversify its product line? Should it introduce more inventory into the business? etc., can be answered with management accounting. 
Cash flow forecasting- It enables the creation of trend charts and budgets, which helps the managers decide where to allocate the money and what resources to choose. In totality, it tells the business the costs to be incurred in the future and revenue coming into the business. 
Identifying problems- It helps in detecting any business problem before any other department. If a department is running into losses or not performing well, management accounting can help identify the problem and its cause. 
Strategic management- Strategic management provides insights into the business to the managers, which allows them to make more well-informed decisions. Businesses can formulate strategies based on their information and enhance their business performance. 

“Management accounting should not be mistaken for financial accounting,” said the senior executive at Whiz Consulting. The points of differences between the two include: 

Financial accounting is for external reporting, whereas management accounting is for the internal purpose of the business. 
The main objective of management accounting is to help internal management make decisions, while financial accounting helps creditors and investors make investment-related decisions. 
Management accounting is not governed by any law, rules, or regulations, but financial accounting must comply with specified laws, rules, and regulations. 
The information provided under management accounting can be both financial and non-financial, whereas financial accounting only deals with financial information. 
Financial accounting needs to be audited as per the specified norms, while management accounting is not subjected to any investigation or audit. 

Management accounting is the strength of internal analysis for a business and strives to achieve its purpose, helping the management make important business decisions. 

ABOUT WHIZ 

Whiz Consulting is a known name in outsourced accounting and bookkeeping services. Their experts are updated with the latest accounting and bookkeeping software to help businesses. They have marked their presence globally and continue to deliver top-notch services in the UK.