Management Accounting

Management accounting is an internal accounting method used by managers of firms in order to help them make informed decisions about the business they are managing. Management accounting is for internal use in a company and is confidential, unlike financial accounting which is for external users. Looking toward the future, management accounting is used to determine how profitability for a company can be improved based on the data obtained. Versus complying with the standards of accounting, such as the GAAP (Generally Accepted Accounting Principles), management accounting uses extensive and complex internal controls as well as management information systems which are computed pragmatically.