Management accounting and management consulting often go hand in hand. Lets look at how we do it.
The purpose of financial accounting is to prepare financial reports that provide information about performance to external parties such as investors, creditors, and tax authorities.
Examples of financial accounting includes bookkeeping and the resulting reports - Trial Balance, Income Statement, Balance Sheet and the Annual Financial Statements.
This is the accounting that we all know.
Managerial accounting is the process of identifying, measuring, analysing, interpreting and communicating information for the pursuit of an organization's goals. Also known as cost accounting. The main difference is that this information is confidential and is not reported externally.
This is the secret sauce that makes the business unique, that you don't want your competition to know about. This information is reported internally to the business owner and decision makers only.
Examples of management accounting reports are budgets, forecasts, and cost & profit analysis. These are things that would not show up in your Trial Balance, but will be used to make decisions about whether a certain product or service is worth your time and investment.
Management consultants help businesses improve their performance and grow by solving problems and finding new and better ways of doing things. Business coaching would fall into this category.
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Evergreen Accounting has really helped get things in order.
Pete Smith, Director Of Marketing