Management Accounting

Management Accounting mainly deals with internal reporting to the managers of a business unit. It narrates to planning, control, analysing and decision making which are helpful to the management in the discharge of its functions.

Management accounting highlights the control of decision making characteristics of accounting which is customised to suit the management needs and wants of a specific enterprise, rather than stewardship aspects of accounting.

It is ‘forward looking’ and usually includes cost accounting, financial accounting and budgeting. There is no stiff convention or accounting principles are used for preparing management accounting.