Managerial Accounting definition. Analyzing the definition of key terms often provides more insight about concepts. Managerial accounting can be defined as – Area of accounting aimed mainly at serving decision-makers needs of internal users; also called management accounting. Managerial accounting can be contrasted to financial accounting. Financial accounting is designed for the needs of external users, the end goal being financial statements, financial statements which follow a strict set of rules and regulation designed make them useful and easy to use for external users. Managerial accounting uses much the same date, much of the same financial data, but managerial accounting can format this data in much different ways because managerial accounting is not restricted to as strict a set of rules and regulations. There are less rules related to managerial accounting because the purpose if the data if for management, management who is familiar with the companies and the intricacies of how it works. Because managerial accounting has less rules we may think the there are no defined practices to study, techniques changing from firm to firm. This is true to a degree but there is still standardization, standardization not caused by regulations, but by best practices, proven techniques which have allowed winning companies to win.
