The basics of management accounting
Management accounting is the process of preparing management reports and accounts that provide accurate, timely financial and statistical information to managers to make short-term and long-term decisions. The key difference between management and financial accounting is that managerial accounting information is aimed at helping managers within the organization to make decisions, while financial accounting is aimed at providing information to parties outside the organization. A fundamental objective of managerial accounting is to better or enhance the performance, strength, and efficacy of management planning and control functions.
At the end the participant will be able to:
- Define management accounting or cost accounting;
- Recognise and understand the similarities and the differences between management accounting and financial accounting;
- Identify the main areas and the main roles of management accounting;
- Define the different management accounting tools which facilitate managerial decisions within the company;
- Understand what the actual business is really about;
- Reconcile annual accounts with management accounts, review of the ratios that need to be applied.
- The definition and the importance of management accounting;
- The key diffences between financial accounting and management accounting;
- The main focus points and the main roles of management accounting:
- Helping Forecast the Future;
- Helping in Make-or-buy Decisions;
- Forecasting Cash Flows;
- Helping Understand Performance Variances;
- Analyzing the Rate of Return;
- Application of various management accounting tools to forecast business trends;
- Importance and utilisation of management accounting tools and the primary tasks and services performed by management accountants: ratios, skills and ability to read and analyze financial statements, Management Information Systems (MIS), Key Performance Indicators (KPIs), simulations, financial modeling, annual budgeting, cost analysis, cost allocation, sales forecasting, product profitability, strategy planning;
- Management accountants are seen as "value-creators", being concerned with forward looking and taking decisions that will affect the future of the organization, and being responsible for preparing annual accounts which are set up for legal and tax purposes.
Principles and definitions, examples and excercises. Real-life managerial reports shared to be analysed and to be discussed together in the group. Interactions among participants and the lecturer.
A qui s'adresse la formation?
This training course is dedicated for executives, shareholders, entrepreneurs and managers who can use intelligent analysis and management accounting to invest smartly, and at the same time prepare quickly for events that might impact them negatively.
Document which certifies the participation in the training session.
About the company
Digits Solutions is an organisme de formation professionnelle continue Based in Luxembourg and a member of the Lifelong Learning Center.
Its specialties are in administration and in trainings including digital management. Digits Solutions trainings are mainly designed for executives and employees from financial departments.