Importance Of Managerial Accounting

The effectiveness and ability of an organisation to fully transform itself as well as implement its growth and development objectives relies on its ability to embrace positive skills of managerial accounting. Managerial accounting therefore, entails the process of ensuring there is compatibility in providing accurate financial control and reporting that is used by the organisations management to implement and develop their strategies through planning, management systems and decision making. Managerial accounting is present to provide both non financial and financial information to managers that is analyzed and used as a key guide in organisational decision making. Strategic management advances the role and purpose of management accounting as a key partner in the organisation while performance management develops various practices of decision making and accurately managing the performance of the organisation.

Risk management lastly, contributes to the various frameworks and practices which are used to identify measure and manage all risks which mitigate the ability of the organisation achieving its goals. Management accounting is therefore seen as value creators that ensure that all decisions made within the organisation impact the organisation positively. Culture heavily implicates various aspects of manage accounting as it involves various aspects which make people and groups within a society unique by staying and embracing their culture. Owing to the fact that culture can be easily passed from one generation to the other, it has been able to significantly influence the values, interactions and norms within various social systems, individuals and processes including management accounting. The purpose of this paper therefore is t...

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...e success of the organisation. A secret culture is aimed at maintaining inequality within the organisation and is therefore not better placed to provide effective management accounting decisions for the organisation (Cohen, 1993).

Conclusion

There is a significant influence of culture to the decisions made in management accounting as all the cultural values, organisational culture and religion shape the management accounting either directly or indirectly. With the structure of culture beginning internally and forming the basis or background of the organisation, it may prove to be a challenge for one to use external rules and guidelines to change the values and beliefs of the society. Therefore, all management accounting decisions need to effectively factor the cultural aspects if it aims to spur growth in the future as well as maintain its professional purposes.