Management Accounting

The different types of accounting information are financial, managerial and tax accounting. Managerial is the most important information because it is prepared for internal use. Financial accounting is prepared mainly for stakeholders and creditors. Managerial accounting can help with establishing the goals of a company. It can also be useful as a performance metric and decision making tool.

Internal accounting information is an extremely useful tool when management is trying to make decisions. Decision-making performance can also be evaluated using internal accounting information. There are not set rules on how internal accounting is done like there are with financial accounting. It can be presented in any manner that is helpful to the people receiving it internally without consequence.  Internal accounting information is usually focused on the goals that they are looking to achieve and is future oriented. It is important that the information that internal accounting is based upon is timely.

A “management accounting information system can help businesses run better by providing timely information on internal operations” (Shanker, 2012, p.1) Technology is used to develop and communicate information by means of email, video conferencing, teleconferences, fax machines and videotapes. All of the venues are useful when implemeting information technology. Many people in a large company can be reached with minimal effort which is ideal for busy managers.

References

Shanker, S. (2012). Chron. Retrieved from How to Establish a Management Accounting Information System: http://smallbusiness.chron.com/establish-management-accounting-information-system-3953.html