| Management Accounting |
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Regulatory financial statements provide yearly reporting, which are usually prepared after some months from the occurrence of the transactions. Additional reporting is necessary to obtain timely information on which actions can be taken immediately. Management accounting can fill this gap by providing to management the required information on a timely basis to be able to make informed decisions based on the company’s past results. Analysing past performance will lead to better decision-making and adopting the correct approach is often critical in this dynamic environment. Management reporting will therefore put the company in a competitive advantage, making efficient use of its resource thus resulting in increase in profitability and growth. 3a’s professionals can be of assistance to management both in their day-to-day operations and long-term strategic plan. Management accounting reports combined with financial ratios and intra-company comparisons would provide management with the essential assistance periodically. Management reports would aid managers to implement informed business decisions and enhance their management and control functions. Managers will get a better insight on the operations of the company and will take immediate corrective action on a timely basis rather than waiting for the yearly results. Such corrective action may include reduction in costs after analysing costs increases and addressing cash flow issues. Our staff will provide the company with accounting ratios, which are tools to aid in optimising decision-making. Key accounting ratios will aid the business to provide an answer for questions such as the company’s solvency and liquidity, profitability, its return on the assets being employed and on whether the business is achieving its goals in key areas. The periodic reports also include intra-company comparisons which provide an analysis of the key accounting ratios over time, highlighting the trends of the company and indicate the area were corrective action needs to be addressed. Our professionals would also assist management in the formulation of company’s policies and implement immediate corrective actions needed to improve the company’s position. Addressing the problems on a timely basis is the best solution that would enable the company to reach its goals. |
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| Last Updated ( Wednesday, 16 July 2008 ) |