Elements of managerial accounting, by our small business accountants in Melbourne CBD
Managerial accounting encompasses all areas of accounting and relates to the analysis of products and services, performance reports and budgets. Our small business accountants in Melbourne CBD perform elements of managerial accounting on a regular basis, which includes the analysis of actual performance results against planned results.
Margin analysis is when our accountants for small business in Melbourne analyse the benefits derived from increased production. Flowing into a breakeven analysis, this element of managerial accounting allows accountants to determine the price products and services need to be in the future for a business to achieve profitability.
Our small business accounting services in Melbourne are also able to identify where bottlenecks occur in the production line or sales process. This is called constraint analysis and allows accountants to calculate the impact of constraints on revenue, profit and cash flow.
Managerial accounting also involves accountants reviewing different trends and identifying unusual cash flow variances in either sales volumes, historical pricing, geographical locations or customer tendencies.
For more information regarding the elements of managerial accounting, please contact our small business accountants in Melbourne CBD today.