Management Accounting Systems and Reporting in Organisational Processes

MANAGEMENT
ACCOUNTING

Table of Contents

INTRODUCTION
Management accounting is a part of accounts and finance that assists the manager of a
company to prepare multiple accounts and reports so that business operations can be managed in
a systematic manner. This project report us prepared in relation with Rowlinson Knitwear which
is a Britain based small sized manufacturing company, situated in Stockport, England. This
company provide corporate wear and school wear uniforms to their customers at reasonable
price. This organisation is established in 1974 and employs around 60 employees. This
organisation is operating at as a small and medium size enterprise and perform operations to
earn high revenues in local market.
This report will include about various kind of management account reporting and
systems which helps in smooth working of organisational process. Other than this, different kind
of costs are used so that accurate income reports can be preprepared for company. Also, different
kind of planning tools are used so that budget can be prepared in a proper manner. At last, with
the help of management accounting systems, financial issues faced by selected firm are resolved
in an appropriate manner.
TASK 1
P1
Management accounting is a way to analyse, summarise and interpret income and
financial statements which can be prepared either at annual or monthly basis. With the help of
management accounting, manager in a company can organise their statements and reports in a
proper manner. Aspects of accounts management will benefits Rowlinson Knitwear in
acknowledging their actual financial position in a market so that they can formulate strategies
and gain high advantages over rivals and competitors.
Role and purpose of management accounting
Basic roles and purpose of management accounting are planning, decision making and
controlling which are stated below:
 Planning: Management accounting benefits a company in attaining high productivity and
reliability against rival organisations due to appropriate planning (Anessi-Pessina and et.
al., 2016). This helps the concerned company in gaining competitive advantage over
rivals.
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