Effective Planning Tools for Managing Accounts

Running head: EFFECTIVE PLANNING TOOLS FOR MANAGING ACCOUNTS
Effective Planning Tools for Managing Accounts
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1EFFECTIVE PLANNING TOOLS FOR MANAGING ACCOUNTS
Table of Contents
Introduction......................................................................................................................................2
Planning tool used in management accounting...............................................................................2
Use of different planning tools and their application for preparing and forecasting budgets.........2
Compare and contrast three planning tools used in management accounting.................................2
Advantages and disadvantages of different types of planning tools used for budgetary control....3
Compare ways in which organisations use management accounting to respond to financial
problems..........................................................................................................................................4
Sustainable success attained in responding to financial problems..................................................4
Conclusion.......................................................................................................................................4
References........................................................................................................................................5

2EFFECTIVE PLANNING TOOLS FOR MANAGING ACCOUNTS
Introduction
The study aims to identify the various types of the planning tools which are seen to be
used by the management accountants and comparing the planning tools in the context of
management accounting. The study has also listed the various advantages and disadvantages of
the planning tools which are used in the budgetary control. Some of the other sections of the
study has discussed on the comparing the ways in which the organisations respond to the
financial concerns.
Planning tool used in management accounting
Some of the various types of the planning tools used by the management accounting are
seen with the tools such as analysis of the financial statement with Ratio analysis, fund flow and
cash flow analysis, scenario and contingency planning and budget forecasting (CGMA 2014).
Use of different planning tools and their application for preparing and forecasting budgets
As discussed by Mazaraki and Fomina (2016), the use of forecasting the budget is based
on the use of analysis of budget variance or revenue variance. Some of the other application of
the budgetary forecasting techniques has been further seen to be associated to the
implementation of activity-based budgeting. The various types of the implementation techniques
are seen to be conducive in terms of assisted benefits which are seen to be based on the
application of project evaluation and appraisal. The net effect of the application of the budgeting
tools has been seen to be based on ensures controlling finances, making financial decision,
identifying the areas of potential difficulty and confirming planned activity which can be funded
(Wijaya et al. 2015).
Comparing and contrasting of three planning tools used in management accounting
The use of three planning tools are discussed below as follows:
 Performance management and measurement
The various types of the techniques used in this type of the performance management is
seen to be based on the evaluation of the KPI for the financial and non-financial measures,