MANAGEMENT ACCOUNTING

Management accounting is a fundamental tool in any company for efficient decision making and strategic control and management.

Management accounting, also called managerial accounting, can play a very important role in improving the efficiency and results of different company processes. Even so, as it is not mandatory, it is often thought that the benefits it can bring are unimportant or of little value. There are many companies that do not yet have an established management accounting model, considering that the improvements it brings are less than the resource costs involved.

That is why it is important to point out the benefits that it adds and the improvements that it can bring in business practices:

The main benefit is that directive accounting helps the company to obtain financial and non-financial information, to classify, organize and present it, to improve decision-making, control, planning and management in general.

It is also a tool that improves cost management as it greatly speeds up the classification of expenses, but also allows you to detail the type of expenses in particular. This better cost management will also benefit us in a better control of budget compliance.

Another advance may also be that with the information analyzed and updated we can adapt the decisions, company policies and actions carried out to the real situation of the company and the needs of the workers. And in addition, management accounting also facilitates the calculation of profitability since the categorization of expenses allows a better allocation of expenses by departments, by cost centers or even by clients and projects.

Good management accounting is also important for small and medium-sized businesses, which often think that it is not necessary for them to implement this system. But without a doubt, changes in the company’s environment occur at high speed and it is important for any business to adapt and take advantage of these changes to be competitive and efficient. Information is power for the management of any company.

There are expense management tools that can provide very beneficial data for the company and save work in the realization of a management accounting plan. This is the case of Captio, which allows its users a quick, agile and automatic classification of company travel expenses according to their type. In this way, it streamlines management accounting as it facilitates real-time information. This app has also developed a guide entitled “6 questions that every accountant has ever asked about wage and salary accounting” that answers all questions about the most appropriate accounting notes or how to manage them.