Management accounting

For a business to be successful, it is essential to have access to relevant information at the right time. Nowhere is this more apparent than when looking at your finances. An essential component of growth is the ability to monitor and understand your business as it changes. You might not feel the need to dive deep into the numbers apart from when it’s time for your annual report to be filed. But a forensic and more regular examination of your finances through management accounting can be an essential exercise that will keep your business financially healthy and competitive within a fast changing global market.

Our management accounting services

At Kreston Global, we know that strategic management accounting and reporting isn’t always at the top of your list of your priorities. It’s understandable that you’d want to focus your efforts in areas that’ll have the biggest and most immediate impact. Here, though, is where our specialist team of advisers can help. As part of our extensive accounting advisory services, we offer specialist accounting and business management expertise – and we can deliver it as an extension of your team.

We appreciate the various reasons why companies don’t always see management accounts as their top priority. If nothing else, it can be a real drain on time and resources. But it’s also important not to dismiss the benefits of management accounting systems and solutions.

The perfect solution for efficiency without compromising on excellence is entrusting your needs to a specialist provider of management accounting services – like Kreston Global. We will empower you with the regular insights, analysis and details that you need, resulting in improved decision-making, enhanced profitability and the financial stability for growth.

What we can deliver is based on your specific needs. We can produce management accounting reports with robust profit/loss accounts and a balance sheet. On top of that, we can contribute to cash-flow forecasts, revised business plans or strategic recommendations for your business.

What is management accounting?

The definition of management accounting is a self-explanatory one. It’s a practice that looks at the financial performance of your business. More often than not, it’ll be business managers and owners who want and use it. The insights that management accounting reports provide can then shape strategic – and appropriate – decisions that can grow the organisation. Management accounting services can give a business vital insights into their structure and financial health, allowing them to make informed decisions and understand the impact of changes.

What are the benefits of management accounting?

There are many good reasons for management accounting. Each reason contributes to the effective and sustainable running of a business, and each can have short- and long-term benefits depending on what they are and how they’re implemented. Some of the most powerful benefits of effective management accounting are:

Planning and forecasting

Immediate cash-flow or long-term market predictions – no matter what future insight you need, accounting management solutions can offer them. From this, you can get informed answers to key strategic questions.

Decision-making

In an ever-evolving business landscape, supply and labour costs can shift on a monthly or even weekly basis. Your management accounting report is a means by which you can be flexible and proactive in critical business decisions.

Monitoring and measuring

Accurate data is fundamental to the success of your business – and management accounting can give you the means to collect, control, monitor or measure it. This is instrumental for setting realistic KPIs – and tracking progress against them.

What is the difference between financial accounting and management accounting​?

Financial accounting and management accounting serve distinct but equally important purposes. Financial accounting focuses on providing standardised, historical financial information to external stakeholders, such as investors and legal bodies, through financial statements prepared according to GAAP or IFRS. Its main goal is transparency and consistency for reporting the company’s performance and financial position.

In contrast, management accounting is aimed at internal decision-makers, offering detailed, forward-looking data to aid in planning, budgeting, and performance analysis. It is more flexible, tailored to the specific needs of management, and helps drive strategic decisions. While financial accounting follows strict regulations and is reported periodically (e.g., quarterly or annually), management accounting is more dynamic and can be generated frequently based on internal requirements.

What are Kreston Global’s compliance standards for management accounting services?

Kreston Global partner firms meet the professional standards of their respective countries as well as observing strict international regulations.

As a world-wide organisation we employ an effective internal monitoring programme ensuring that all our members meet the International Standards on Quality Control as well as the International Standards on Auditing for the conduct of transnational audits. All Kreston partner firms follow the code of ethics as dictated by the IESBA (International Ethics Standards Board for Accountants).

As a proud member of the Forum of Firms, an association of international networks of accounting firms, Kreston Global is committed to meeting high standards in financial reporting and auditing practices across our worldwide community.

Why choose Kreston Global for management accounting services?

We offer management accounting capabilities as part of our expert accounting services. Where there are challenges, we will help to find solutions. Where there are opportunities, we will ensure that you’re prepared to take full advantage.

A significant benefit of choosing Kreston Global is the breadth and depth of expertise on which you can lean. We have built a network that spans 115 countries and more than 160 firms so, whatever you need from us, wherever you need it, our network gives us that reach and access to relevant expertise. With international insights we can provide custom management accounting services to provide the support and insights that your business needs.

For more details about our management accounting services, please get in touch today. You’re also welcome to become a member – and benefit from access to our global network.