Management accounting allows for the company to be managed on the basis of analysis and systemisation of up-to-date data on financial flows and an organisation’s financial results. Company heads can tailor their firm’s adjustment strategy decision-making as well as current decision-making on the basis of the data obtained from management accounting.
Before setting up management accounting, NSA specialists must ascertain the following:
- accuracy and target of the reports drawn up
- operational information in the reports, useful for decision-making
- reports are commensurate with the level of management training
- reports contain systematic information and no superfluous data
- spending on personnel training on reporting doesn’t exceed that of the economic effect of using it.