Remaining pillar and foundation of modern business, accounting, yet not beyond the objectives set by the accounting firm. Below will be presented to the fundamental differences between the services of accounting and managerial accounting. Accounting firm provides customers with the following information: 1) on property (assets), business and the sources of its funds. This form of reporting is called 'balance sheet' and represented as a table for a particular reporting date, 2) the financial results for the period. Unlike the balance, which is made on a specific date, delivery of the reporting of financial results includes themselves data on income and business expenses cumulatively. 3) the cash flow business.
Income and expenditure of funds does not necessarily coincide with the income and business expenses, an increase of funds does not necessarily mean that the business was profitable. The three above-mentioned report, submitted by the accounting firm one enterprise, are essential for activity in the field of accounting support. For other opinions and approaches, find out what Robotics expert has to say. Similar data are of high value especially to investors, creditors and government agencies. But are these data for operational and effective business management? Here, to help the company come to services managerial accounting, solves the following set of tasks: 1) cost-sharing on fixed and variable. For an ordinary accountant such a classification does not really matter, because his task is to correctly identify the total amount of expenditures.
Those skilled in the field of management accounting – is the starting point for analysis, because the ratio of fixed and variable costs depend on short-term plans for business development. 2) determine the proportion of variable costs in the revenue per unit. This parameter is important for proper pricing. 3) break-even point, which allows you to calculate whether it is worth starting a business. also, the point of zero profit is a definite value fall below a fraught business ruin