extraordinary, not ordinary
In accounting, there are two streams: financial accounting and management accounting.
When most small business owners think of an accountant, they are thinking of a financial accountant.
When most small business owners think of an accountant, they are thinking of a financial accountant.
For your business to survive and thrive, you need BOTH types of accounting.
We specialise in management accounting.
the fundamental differences
financial accountingRecording of financial transactions
Shows you the past Tells you what HAS happened Regular and consistent Produces historical reports Provides reporting for external parties Shows the effects of past decisions Used to calculate tax obligations Highly regulated Strict deadlines Reactive examplesBookkeeping
Financial statements Tax returns Annual report Compliance Ratios SERVICE PROVIDERSFinancial accountants
usually members of CAANZ 27,000 members living in NZ often working in practice with many clients specialists in tax and compliance Bookkeepers possibly members of ICNZB several thousand living in NZ |
management accountingAccounting for management purposes
Has a future focus Tells you what COULD happen Regular or ad-hoc Drives decision-making Focused on internal financial data Helps you anticipate change Looks at the whole business Flexible and creative As needed Proactive examplesBudgeting and forecasting
Analysis Costing Productivity Profitability Sensitivity SERVICE PROVIDERSManagement accountants
usually members of CIMA 620 members living in NZ work within businesses, not in practice specialists in added value |
infographics
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management accounting in nz
NZ's Institute (now CAANZ) merged its financial accounting division and its management accounting division in the mid-80s.
A small number of members of the Chartered Institute of Management Accountants live in NZ.
A small number of members of the Chartered Institute of Management Accountants live in NZ.
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