Management accounting provides necessary financial and non-financial information to management for decision making, including strategies, resource allocation, operations planning and control, performance evaluation, and external reporting. It increases efficiency by scientifically evaluating performance and identifying deviations. It also helps maximize profitability through budgeting and capital expenditure reduction. Management accounting simplifies financial statements by providing simple interpretations to help management understand and use the information. Additionally, it helps control cash flow by monitoring money inflows and outflows to prevent misuse. Overall, management accounting is an important tool that guides business plans and ensures continued success.

1. ADVANTAGES OF MANAGEMENT
ACCOUNTING
PRESENTED BY SUBMITTED TO
SUBHASREE.R (ROLL NO. 39) PAWAN KUMAR GUPTA,
CHANDHANA (ROLL NO. 15) ASSISTANT PROFESSOR, DEPARTMENT OF
B.COM –II YEAR COMMERCE, MGGAC, MAHE

2. • INTRODUCTION
• Roles of Management accounting
• Management accounting is about providing necessary financial and non-
financial information to management and employees at all level inside the
organization for decision making purpose , so that they can better be able
to make following rational decisions in timely manner
> control and prepare management accounts which captures and
processes data for organization.
• > formulating overall strategies and long range/ short range planning
• > Making resource allocating decisions
• > Planning and control of operating activities
• > Evaluating of manager and operation
• > Reporting information for use in external reports ( annual accounts)

3. 1ST : INCREASE EFFICIENCY :
• Management accounting increases the efficiency of
operation of company. Everything is done in management
accounting with a scientific system for evaluating and
comparing the performance. With this, we find deviations.
We will take promotional decisions on this basis. Other
employees will also be motivated with this because if their
performance will be favorable, they get reward of this.
Thus management accounting increases efficiency.

4. :Using of management accounting's budgetary
control and capital budgeting tool, company can
easily succeed to reduce both operating and capital
expenditures. After this, company can reduce its
price and then company will receive super profits.
2nd:MAXIMIZING THE PROFITABILITY :

5. 3RD:SIMPLIFY THE FINANCIAL STATEMENTS
• For taking different managerial decisions,
management accountant provides deep technical
reports with simple interpretations in which he
mentions the facts of financial statements, after
this, company’s management officers understand
what is in financial statement and how will they use
this for company’s progress.

6. 4TH : CONTROL OF BUSINESS’S CASH FLOW
• :It is one of important advantage of management
accounting that it can be used for controlling of
business’s cash flow. We all know that cash in hand
is better than in fixed properties if there is
emergency to pay our loan or debt. So,
management accountant deeply studies from
where is money coming and where is it going. To
check on misuse of money will surely control of
business’s cash flow.

7. 5TH : BUSINESS-CRITICAL DECISIONS
• To take business – critical decisions, now
management accounting will become more
powerful. Global management accountants are
coming for join on one plate-form for taking all
business critical decisions

8. CONCLUSION
Management accounting is needed in business
because it has capacity to change the business
performance and financial position.
• Management has many tools it can use to be
productive and sustain a successful operation.
Managerial accounting is important in the business
and should be valued . The role it plays in business
is one that guides the plans to make sure the
business stays on course

9. • Management accounting is those areas of
accounting concerned with financial planning,
principally through the interpretation and use of
financial data for important management of the
business

10. Thank you