Business Aid Business Solutions' Management Solutions
Management accounting is an ordered system of disclosure, evaluation, collection, registration, interpretation, integration, preparation and analysis of important management information and economic indexes. These procedures are performed for usage by administrative structures and development of efficient solutions.
Business Aid is inherited from its parent company Abdulrahman Alnuaimi Auditing of Accounts which is known as the number one auditing firm in Dubai and so we recommend to look into the principles and functions of management accounting before its implementation into an organizational structure. To begin with, the accounting management differs from personal or financial accounting with its optionality. Every business holder should evaluate an importance and benefits from the management accounting introduction. At this point, the most relevant analysis part is the calculation of an expenditure part for the support of a management accounting operation and possible benefits, provided by its implementation. Minimal costs for management accounting organization depend on personnel availability, the current financial situation of a business and long-term financial obligations of an enterprise. There is a number of management accounting divisions, involved into diversified information activities:
- formation and verification of presented data;
- profits calculation and distribution;
- identification of the most relevant expenditure articles for business development;
- prognosis of future profits, related to the tactic and strategic planning;
- development of minimal and maximal business growth programs;
- expansion and modernization of a personal motivation system.
The main aim of the management accounting is the increased profit of the enterprise. Meanwhile, it solves the following main tasks:
- provides the information for the management of the company about consolidated results of the business, consisting of an unlimited number of legal entities and structural subdivisions;
- shows the results of the work of separate directions (they may be activities, goods, or other items, depending on the specifics of the business), regardless of division of these directions between legal entities within the business;
- shows the results of the work and also structural units which can be departments, shops, legal entity;
- carries out control over costs through their accounting by the types and centers of costs;
- accumulates statistics about income and expenses of the company in a particular perspective and identifies general features;
- realize planning and monitors implementation of the budget by the separate centers of costs as well as the business as a whole, including the combination of legal entities.