We are not Public Accountants, we are Management Accountants

Chartered Management Accountants (CMA) are trained in accounting and reporting for internal strategic managerial purpose. This makes them suitable to improving company's performance and have direct impact on the bottomline. Reporting is geared towards looking into the future and have what if scenarios. Management accounting consists of decision models and mathematical techniques that assist management in making quantitative decisions with qualitative judgement.

We do not work for IRS or to please the taxman, we work for management by finding efficiencies in the internal processes thereby boosting profitablitlity. CPA’s are trained in financial accounting and reporting to external organizations such as the government making them suitable for year end tax reporting to the IRS. 

Strategic Management Accounting

SMA is a form of management  accounting in which emphasis is placed on information which relates to factors external to the firm as well as non-financial information and internally generatedinformation. Management Accountant is no more than a bean counter but plays a key role in strategic decision making of the company. 

Strategic accounting requires the ability to recognize patterns and trends, establish priorities, anticipate issues and predict outcomes.

Financial Accounting is the use of accounting information for reporting to parties outside the organization. Management Accounting is focused on the needs of managers within the organization, rather than interested parties outside the organization. Our goal is to work within the constraints of established rules and regulations and to assist business management by conceptualizing and implementing practices to efficiently manage their business. This is done by the application of information in such a way as to assist management in the formation of sound policies and in the planning and control of the operations.

Strategic and Tactical decision and information framework

Tactical decisions are often linked to strategic decisions. Have you ever faced a situation where you needed answer to: 

• • Whether to accept special orders
  • How many parts or other raw materials to buy
  • Should I make parts internally or source from outside
  • Whether to schedule overtime
  • Which products to produce and what price to charge
  • What is the product life cycle
  • What is my breakeven point
  • What is the optimum production size
  • Which line of business is most profitable
  • Which product lines are not making a profit and should we continue to invest or discontinue it

The business chooses actions based on evidence in support of its objectives. A rational decision making approach can help reduce uncertainty.

Financial Information for decision making

As your Management Accountants, we provide advice and recommendations and add value to an organization by pursuing four major objectives:

• • Providing information for decision making and planning in a timely manner.
  • Assisting managers in directing and controlling operational activities.
  • Measuring the performance of activities, divisions, managers and other employees within the organization.
  • Assessing the organization's competitive position and working with managers to ensure the organization's long-run competitiveness in its industry