The term management accounting is the modern concept of accounting as a tool of management .

It is a broad term and is concerned with all such accounting information that is useful to management.

MANAGEMENT ACCOUNTANT
He analyses and interprets accounting information and meets the informational needs of management at different levels. In an organization, a management accountant generally performs a staff function, i.e. advisory role. But if he is permitted to participate in planning and decision making, he is a part of management .

1. Financial accounting. 2. Cost accounting. 3. Budgeting and forecasting. 4. Tax planning. 5. Reporting to management. 6. cost control procedures. 7. Statically tools. 8. Financial analysis and interpretation.

PLANNING COORDINATING CONTROLLING COMMUNICATION FINANCIAL ANALYSIS AND INTERPRETATION QUALITATIVE INFORMATION TAX POLICIES DECISION-MAKING

Financial and management accounting

FINANCIAL ACCOUNTING = Financial accounting is mainly intended for external users like investor, shareholders, creditors, Govt. authorities, etc. MANAGEMENT ACCOUNTING= Management accounting information is mainly meant for internal users, i.e., management.
FINANCIAL ACCOUNTING= It is based on double entry system for recording business transaction. MANAGEMENT ACCOUNTING= It is based on double entry system.

Cost and management accounting

COST ACCOUNTING= Maintenance of cost records has been made compulsory in selected industries as notified by the Govt. from time to time.
MANAGEMENT ACCOUNTING= Management accounting is purely voluntary and its use depends upon its utility to management. COST ACCOUNTING= It is based on data derived from financial accounts. MANAGEMENT ACCOUNTING= It is based on data derived from cost accounting , financial accounting and other sources.

Limitations of management accounting

1. BASED ON HISTORICAL DATA. 2. LACK OF WIDE KNOWELDGE. 3. COMPLICATED APPROACH. 4. NOT A SUBSTITUTE OF MANAGEMENT. 5. COSTLY SYSTEM. 6. DEVELOPING STAGE. 7. LACK OF OBJECTIVITY. 8. RESISTANCE FROM STAFF.

FINANCIAL ACCOUNTING

MANAGEMENT ACCOUNTING

Mainly intended for external users like investors, shareholders, creditors etc. Based on double entry system for recording business transactions. Concerned with recording transactions which have already taken place

Mainly meant for internal users i.e. management. Is not based on double entry system. It is future oriented and concentrates on what is likely to happen in future.

 Profit and loss account and balance sheet are prepared usually on a year to year basis. Companies are required to prepare financial accounts according to Accounting Standards issued by the Institute of Chartered Accountants of India. Financial accounting provides information in terms of money only.

These may be monthly, weekly or even daily, depending on the management.

Management accounting is not bound by accounting standards. May apply monetary or to non monetary units of management.

Thank you..!!!!
MEGHA GUPTA BBA III SEM