SIX ways management accounting gives you a competitive advantage

Management accounting can help develop a clear picture of your monthly performance, financial year to date, performance against budget and previous years.

SIX ways management accounting gives you a competitive advantage

Posted By Colin Scull

Management accounting does not have to be onerous or expensive and brings many benefits to new and established organisations. Having a clear view of your performance against budget and previous periods can give you financial and strategic advantages in SIX key areas.

  1. Better cost control
  2. Improved margins
  3. Boosted cash flow
  4. Better credit management
  5. Reduced risk
  6. Better strategic focus

1. Better cost control

  • Monitoring sales volumes against targets
  • Understanding the profitability of different geographic, industry or client segments
  • Annual budgeting and the ability to measure against this

2. Improved margins

  • Price modelling
  • Product profitability
  • Cost benefit analysis
  • Business metrics development

3. Boosted cash flow

  • Financial forecasting
  • Sales forecasting

4. Better Credit Management

  • Buy vs. lease analysis
  • Internal financial communication

5. Reduced risk

  • Cost-volume-profit analysis
  • IT cost analysis
  • Capital budgeting

6. Better strategic focus

  • Strategic planning and management advice
  • Sales management KPIs
  • Client profitability analysis