LO1 1 Importance of management accounting for decision making process Importance of management accounting Management accounting is termed to as collecting of financial information and data so that company could get advice and proper guidelines in terms of development and organisation of the business functions (Simunic and Biddle, 2019). Thus, management accounting describes the real position of the firm, the mangers of the firm making the statements for the purpose of taking the decision easily related to the firm performance it helps to managing the funds and other activities.