How to design management accounts including step by step • 1. Management Accounting – What and why ? • 2. Where does Management Accounting fit? • 3. What are the Management Accounting Principles and why do you need them? • 4. What steps do you need to have to build Management Accounts ? • 5. Conclusion

1. M10 - How to
design
management
accounts 2 of 3

2. Introduction to management accounts
Table of Content
1. Management Accounting – What and why ?
2. Where does Management Accounting fit?
3. What are the Management Accounting Principles and why do you need them?
4. What steps do you need to have to build Management Accounts ?
5. Conclusion

3. What is
Management
accounting?

4. What is it?
Management Accounting is the sourcing,
analysis, communication and use of decision-
relevant financial and non-financial
information to generate and preserve value
for organisations.

5. Where does it
fit in
Accounting?
Cost
Accounting
Management
Accounting
Tax
Accounting
Financial
Accounting

6. Why do we need
it in simple form
• Performance at organization, product,
division, function levels, etc in a specific
period
• Position at organization, subsidiary,
division level at particular date

8. what does it
entails
detailed

9. Where
does it fit
in
financE?

10. Management
accounts key
role

11. Principles of
management
accounting

12. 4. Difference with
Cost vs
management
accounting

13. 4.2 Differences
It is more than just numbers

14. 5 Simple Steps to Set up
Management Accounts
Step 1 - Set up a Goal/Target - including KPIs
in finance we have only 4 elements Income,
Expenditure, Assets and Debt, remember you
keep top, increasing and bottom decreases.
Know your baseline which current.

15. 5 Simple Steps
to Set up
Management
Accounts
Key Performance Indicators KPIs

16. 5 Simple Steps to Set up
Management Accounts
Step 2. How do I intend to achieve the goal -
Strategy to achieve to the goal, i.e that is a Plan.
The plan must be operationalised - Daily, Weekly,
Monthly, Quarterly and Annually

17. 5 Simple Steps
to Set up
Management
Accounts
Step 3 - Identify key milestone based on
timelines or period - broken the targets.
Prioritise what is important to achieve the goal.

18. 5 Simple Steps to Set up
Management Accounts
Step 4 – For Items identify as per milestone and
targets which management will monitor. Keep in
mind industry trends (product use, customer
needs, supplier influence, economy cycle).

19. 5 Simple Steps to Set up
Management Accounts
Step 5 - Set up the charts of accounts in
your trial balance, your accountant will assist
with this or bookkeepers. Now you are ready
to review performance and position. Capture
Budgets as per Module 9. Using charts of
accounts as per Financial System.

20. Conclusion
• To setup Management Accounts you need to do it
once or when ever you change KPIs
• You will need to ensure the financial system enables
you to run the reports direct than exporting and
manually capturing data for collection of information.
So set up the system focus
• Get competent people to provide you with good
foundation to manage performance

21. Contact details
• Precious Mvulane CA (SA), RA
Email: info@gadcs.co.za or
precious@gadcs.co.za
Product: www.financesuccess.co.za
Author Page: www.preciousmvulane.com
Company website : www.gadcs.co.za