What exactly does the function of management accounting include?

Management accounting is a profession that deeply participates in management decision-making, formulates plans and performance management systems, provides professional knowledge in financial reporting and control, and helps managers to formulate and implement organizational strategies. Accounting exchange thinks it is different from traditional financial accounting. Management accounting serves managers at all levels within the enterprise and faces the future development of the enterprise. Through the analysis and interpretation of financial data, it provides feasible solutions for enterprise management decision-making from the financial point of view.

The concept of management accounting:

Management accounting, also known as "internal reporting accounting", refers to an economic management activity that takes the current and future capital movements of enterprises as the object and aims at improving economic benefits, and provides scientific basis for management decisions for internal managers of enterprises.

Characteristics of management accounting:

1, management accounting is a branch of modern accounting and an information system serving the internal management of enterprises.

2. The subjects of management accounting are multi-level, which should not only reflect the overall business activities of the enterprise, but also reflect the business activities of various responsible subjects within the enterprise.

3. Management accounting is mainly a tool to provide information services for management departments.

4. The function of management accounting focuses on the prediction, decision-making and planning of the future, and the control, assessment and evaluation of the present.

The role of management accounting in value chain

Management accountants create value, not just measure it.

Functions of management accounting:

Function is an intrinsic, inherent and objective function or attribute of things, which is not transferred by human subjective will. The functions of management accounting are prediction, decision-making, organization, planning, control and evaluation.

The function of modern management accounting has expanded from the simple accounting of financial accounting to the organic combination of analyzing the past, controlling the present and planning the future.

Analyze the past

Management accounting mainly analyzes the past by further processing, reorganizing and expanding the information provided by financial accounting to better meet the needs of planning the future and controlling the present.

Take control of the present

The role of management accounting in control is to correct the deviation in the implementation process in time through a series of index systems, so that the economic activities of enterprises can be carried out effectively in strict accordance with the predetermined track of decision-making.

planning the future

Prediction and decision-making are the main forms of planning the future. The role of modern management accounting in this respect lies in: making full use of abundant information, making rigorous quantitative analysis, helping management departments to grasp the situation objectively, thus improving the scientificity of forecasting and decision-making.

The functions of modern management accounting, such as analyzing the past, controlling the present and planning the future, are closely combined to play a comprehensive role and form a comprehensive function.