Management accounting or managerial accounting, is a branch of accounting concerned with translating financial data into useful information for key decision-makers.
It assists an organisation in achieving its objectives by defining, calculating, evaluating, interpreting, and communicating information to managers.
The only difference between management accounting and financial accounting is that the organisation’s internal team only uses management accounting.
What is a Management Accounting System (MAS)?
MAS are used to provide management with essential information for operational, tactical and strategic business decision-making.
These systems could be used by a manufacturing business to aid in the costing and management of their operation or a hospital to help with insurance billing.
These systems differ according to the industries.
Management accounting vs Financial accounting
|Used for internal reporting.
|Used for external reporting.
|Concerned with both financial and non-financial information.
|It mainly includes financial information.
|Usually not subject to external audits or investigation.
|Subject to external audits or investigation.
|It is not regulated
|It is regulated by laws, standards, and regulations.