Management accounting involves partnering with management in decision making, devising planning and performance management systems, and providing expertise in financial reporting and control to assist management in the formulation and implementation of an organization’s strategy.

Management accounting reports provide information for planning, control, performance measurement, and decision making to managers and employees when they need such information. These reports have a flexible format; they can present either historical or future-oriented information expressed in dollar amounts or physical measures. In contrast, financial accounting reports provide information about an organization’s past performance to owners, lenders, customers, and governmental agencies on a periodic basis. Financial accounting reports follow strict guidelines defined by generally accepted accounting principles.