Management accounting provides significant economic and financial data to the Management and the Management Accountant is the channel through which this information efficiently and effectively flows to the Management.
The Management Accountant has a very significant role to perform in the installation, development and functioning of an efficient and effective management accounting system. He designs the frame work of the financial and cost control reports that provide each managerial level with the most useful data at the most appropriate time. He educates executives in the need from control information and ways of using it. His position is unique with respect to information about the organization. Apart from top management no one in the organization perhaps knows more about the various functions of the organization than him. He is as the chief intelligence officer or financial advisor or financial controller of the management. He gathers information, breaks it down, sifts it out and organizes it into meaningful categories. He separates relevant and irrelevant information and then ranks relevant information according to degree of importance to management. He reports relevant information in an intelligible form to the management and sometimes also to those who are interested in the information outside the company. He also compares the actual performance with the planned one and reports and interprets the results of operations to all levels of management and to the owners of the business.